What can we do if clients owe money and refuse to pay?

UPDATED: Sep 30, 2022

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What can we do if clients owe money and refuse to pay?

Long process in getting paid for a job that has been completed since the client refuses to pay. A number of broken promises have beenmade, even after an agreement was arranged for the client to pay off account over a month. This is going on 70 days and we have a debt collector but he does not keep the pressure on and matters just seem to be dragging. It’s not an awful amount of money but as a small business $850 certainly affects us.

Asked on September 30, 2016 under Business Law, Alaska


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

You collect money that someone owes you but won't pay by suing them: in case like this, you'd sue for "breach of contract," or violating the agreement that you'd do work (or provide goods or services) in exchange for which, they'd pay. Suing in small claims court without an attorney is a cost effective way to do this. To win, you'd have to show (including by testimony, documents, photographs, etc.) that you did the work and what the agreement was--how much they were to pay.

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