I am owed $400 for programming work. The client has acknowledged the debt in emails but has not responded to my emails for over 2 months. The client has the finished program for sale on his website for $500. I think its way overpriced and won't sell at that amount. I would use small claims court to collect but he is 700 miles away and small claims must be filed where the defendant lives. I'd have to travel there for the trial date. The BBB will not handle debt cases. Until I am paid I believe I have rights in the program and may advertise & sell it my self...but I'd rather collect. Any suggestions?
Get a phone number for the guy and say, look either i get paid or i am going to have to take you to court. You don't work for nothing, get paid
If I were you I would forget about getting money back from someone who is 700 miles away and sell the program and benefit yourself. That guy is gone if he's not responding anymore. And is worthless to go to him.
All that collection agencies do is spend money on a couple of stamps & send a couple of letters demanding payment. If the person doesn't respond they don't pursue it. Collection agencies take 25-40% on a contingency basis if they collect on the debt. I may put up a webpage to sell the program though I suspect I'll make more off Adsense on that page.
You may try online dispute resolution. There are a couple of online mediation platforms out there that provide results. One of which is SquareTrade.com, which I think also handles dispute at eBay (I think only if you have agreed to submitting disputes to SquareTrade). I think it is necessary to submit some personal circumstances about the other party before your case can proceed, that is, his full name, email and address. Try to check out SquareTrade's site to know more about mediation. You can also search Google. for other ODR (online dispute resolution) platform.
Dont send it to a collection agency, be the collection agency. The only thing collection agencies do is make phone calls, send letters, negotiate payment plan or smaller payment, or send it to small claims court. Depending on how long this has gone on, I would consider legal options in the criminal arena, not the civil arena. Like you said, small claims court is out of the question because of distance. You can however, very easily file a police report for fraud in his county. Again, that depends on how long this has gone on. One question, did you have a written contract? If yes, then you can file a criminal case since he defrauded you. Even if not, I would try just so you can tell him the law is in on it. Believe it or not intimidation is a great motivator if used properly. USe the power of intimidation! One good thing about small claims court, If you win, which you probably would...You would have a lot more options to get your money back. First, you could include all travel expenses and court fees in the lawsuit. Second, you could get yout money very easily! You can garnish wages. Freeze bank accounts and take the money in it. Get any money people might be paying him for rent, put a lien on his house. You wouldnt get your money right away, but you could have a lien with good interest. When he does sell his house you would get alot. Great way to invest!!!!! Hope this helps!
Its different in different states. In Illinois, you would take it to Pro Se court (under $2000), and you would get a judgment. But getting a judgment doesn't automatically mean you get the money. You will have to collect the money, get a lien, or garnish wages. But it is good to get the judgment. The person who owes you the money will have it on his record until he clears it with you. Eventually they pay. Rich
Getting the judgment does make it easier to get the money. Iy gives you alot more avenues. Just search google for judgment recovery. There are a lot of people making alot of money collecting these judgments for other people. Usually for 50% of the judgment. Another good thing about the judgment is intrest begins piling on from day 1, The longer it takes to get the judgment, the more money you get. Usually around 8%
This is not a criminal matter. This is a civil matter. Be very careful, as you do not want to threaten someone with criminal charges in an effort to get them to pay you money. That is extortion and is a crime. (ex. It is illegal to say "pay me or I will report this to the police") The best way to handle this type of issue would be in Small Claims Court.