What is the most effective way to collect on money that is owed to me?

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What is the most effective way to collect on money that is owed to me?

I sold a business for 15k to someone locally. Our agreement that we had signed and notarized was that she would pay $6,000 up front and $750 a month for 12 months. After 2 months she has not made a payment and actually closed up shop on the business I sold her. She said that she closed shop because her husband got a great job offer . I found out through the grapevine that she is moving to MI soon. I have asked her many times for the last month’s payment and she said, “Not at the top of my priorities right now.." So, I take that as her not willing to pay. What can I do?

Asked on August 6, 2011 Florida

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If the person who you sold your business to has no intention of paying what is owed and intends to move out of state, you need to take quick action if you ever want to see any part of the $15,000 owed you.

After you read this answer, you should immediately consult with a business attorney amount the sale of your business and the breach of the buyer's agreement to pay you.

You need to file a lawsuit against the buyer for breach of the contract's purchase for the $15,000 owed. Potentially, your state may allow a pre-judgment writ of attachment on assets of the buyer to lien before the case is even heard at trial. If so, your lien would be able to "freeze" assets of the buyer within Florida before the buyer leaves this state and moves to another.

The last thing you want is to get a judgment in Florida and have to chase the buyer to another state to try and collect upon the judgment.

The buyer has already shut down the store she bought from you without payment. If the buyer and her husband own a home in Florida and there is equity in it, then if it is sold as a result of their intended move, your $15,000 plus interest could hopefully be paid off.

You need to move quickly in retaining a good buseness attorney and most likely filing a lawsuit against the buyer before she moves out of state.

Good luck.

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If the person who you sold your business to has no intention of paying what is owed and intends to move out of state, you need to take quick action if you ever want to see any part of the $15,000 owed you.

After you read this answer, you should immediately consult with a business attorney amount the sale of your business and the breach of the buyer's agreement to pay you.

You need to file a lawsuit against the buyer for breach of the contract's purchase for the $15,000 owed. Potentially, your state may allow a pre-judgment writ of attachment on assets of the buyer to lien before the case is even heard at trial. If so, your lien would be able to "freeze" assets of the buyer within Florida before the buyer leaves this state and moves to another.

The last thing you want is to get a judgment in Florida and have to chase the buyer to another state to try and collect upon the judgment.

The buyer has already shut down the store she bought from you without payment. If the buyer and her husband own a home in Florida and there is equity in it, then if it is sold as a result of their intended move, your $15,000 plus interest could hopefully be paid off.

You need to move quickly in retaining a good buseness attorney and most likely filing a lawsuit against the buyer before she moves out of state.

Good luck.


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