business law - options for formal debt collection

[XSmojo]

Looking for legal guidance or assistance on formal debt collection options with a client in another state. Also allowed interest or penalty charges.

They obviously think the invoice is optional.

Starting with team ODT. If you know somebody in this biz please share.

EDIT: "need name(s) of attorney(s) specializing in debt collection, if you know any"

 

[rustyboy]

You first need a judgement. You sue them for not meeting the requirements of your contract.

Then it gets fun.

 

[gh1950]

You really need to consult with an attorney on this.

I know that internet advice on critical life matters is infallible, but the answer to this question requires a very detailed analysis, the primary one being the cost of recovery vs the likelihood and amount of recovery.

But hey,I'll start the ball rolling. There are generally no penalties on unpaid debt in Georgia. In fact, Georgia law disfavors the imposition of penalties in contract cases.

If you have not stated an interest rate on the invoice, your interest is a very nominal amount, and as a practical matter does not figure into the evaluation of remedies.

I yield the floor to team ODT.

 

[GAgunLAWbooklet]

Not only are penalties not allowed but the general rule is that unless there's a contractual provision where the losing side agrees to pay the winning side in any action on their contract, you don't get attorneys fees you would have to sue for the breach of the contract and you'd probably end up paying your own attorneys fees out of pocket.

Sometimes courts will allow an exception to that when there is bad faith during the litigation and stubborn refusal to concede facts that obviously are not fairly open for debate. If you have to make a motion and have a hearing on the motion for a "discovery" related dispute, within the litigation you can probably get attorneys fees if you prevail in that discovery fight but not in the overall course of the litigation itself.

But, as others have said above, in the big picture your first goal would be to get a judgment from the court and then you proceed to what are known as "post judgment collections."

 

[BDR1]

You need somebody to scare em or go a little futher?

 

[XSmojo]

Not only are penalties not allowed but the general rule is that unless there's a contractual provision where the losing side agrees to pay the winning side in any action on their contract, you don't get attorneys fees you would have to sue for the breach of the contract and you'd probably end up paying your own attorneys fees out of pocket.

Sometimes courts will allow an exception to that when there is bad faith during the litigation and stubborn refusal to concede facts that obviously are not fairly open for debate. If you have to make a motion and have a hearing on the motion for a "discovery" related dispute, within the litigation you can probably get attorneys fees if you prevail in that discovery fight but not in the overall course of the litigation itself.

But, as others have said above, in the big picture your first goal would be to get a judgment from the court and then you proceed to what are known as "post judgment collections."

I expected this would require an attorney. Know anyone that deals with sort of thing?
First I have to determine the options, and likely cost vs the amount.

 

[TapcoFan]

Get an attorney that specializes in debt collections who practices in the jurisdiction of the debtor. Don’t be surprised if they charge you 1/3 of the balance as a fee.

 

[gh1950]

Get an attorney that specializes in debt collections who practices in the jurisdiction of the debtor. Don’t be surprised if they charge you 1/3 of the balance as a fee.

Well, I was going to bail, but if the debt was incurred in Georgia, a judgment can very likely be obtained in Georgia.

Consult with a knowledgeable attorney.

 

[XSmojo]

thanks all, sound advice.

I should have listed this as "need name(s) of attorney(s) specializing in debt collection, if you know any"

I had already resolved legal assistance was necessary, just trying to figure out how you go about finding a JD with this focus. I think my scenario will either be a simple yes or no to someone who deals with POs and contracts.

 

[gh1950]

Wish I could offer a suggestion. Out of my ball park.

There are only 30,000 + attys in the greater Atlanta area.

I would ask a community bank or local credit union who they use. If that firm doesn't want to handle it, they can give you a reference of a local attorney who will.