If I’m a massage therapist whose been waiting for payment for service rendered from an MVA 4 years ago, what recourse do I have to collect payment in full?

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If I’m a massage therapist whose been waiting for payment for service rendered from an MVA 4 years ago, what recourse do I have to collect payment in full?

The attorney contacted me about the balance due and I gave it to them over the phone 2 months ago. This week I received a check for payment and a letter stating all remaining funds have been disbursed and no additional funds will be paid. The check is not the correct amount, it’s nearly $700 short.

Asked on June 19, 2014 under Bankruptcy Law, Washington

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

If  you did not have a written contract or service agreement, then it appears to be too late to take any action: in your state, the statute of limitations (time to sue, which is also the time to enforce a debt) for an oral contract is 3 years, and you write that this occured 4 years ago.

If you had a written agreement, you'd still be in time to sue (the statute for written agreements is 6 years), but it may not be worth taking action:

1) It might not be worth the time, cost, and aggravation to sue, which would be the only way to get the money if they won't pay voluntarily, for $700.

2) Even if you sued and won, if there is no money to be had, you can't collect.

Talk to your accountant about whether you can take this as some sort of a tax loss.


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