Been dealing with a client who’s been dodging payment for three months now. Finally decided to look into the legal side of collections but honestly feeling pretty lost about what I can and can’t do.
Anyone else been through this process? Really curious how others have handled the whole legal compliance thing when chasing down unpaid work.
I send accounts to collections after 90 days. They take 30% but it’s worth it. I don’t waste time on phone calls or demand letters. They understand the legal side much better than I do. Losing that 30% is better than spending hours chasing clients who have no intentions of paying.
Been through this twice when I was starting out. First thing I did was check my state’s rules on late fees and collection costs.
Turns out I could legally tack on a 1.5% monthly service charge that I’d forgotten to put in my original contract. Threw it in the demand letter anyway since they’d already broken the agreement.
Here’s something no one talks about - write down every phone call or meeting about payment. I kept a basic log with dates and what was discussed. My lawyer buddy said courts eat that stuff up.
Also learned my state lets you recover attorney fees in small claims if you win, but only if it’s in your contract. Mine wasn’t, so I got stuck with those costs.
Bottom line: know your local rules before you start making threats. Every state handles collections differently.
Yeah three months is rough I just move on
Small claims is simple but it drags on. I usually just write off the bad ones and ask for cash upfront.
Three months? Way too long. I learned this when a client stiffed me for $2,800.
Here’s my system:
The demand letter did it. Soon as they saw “legal action” in writing, they paid.
Most states make small claims pretty easy for amounts under $5K. Just save your emails, contracts, and proof you delivered the work.
Don’t feel guilty about chasing what’s yours. These clients bank on freelancers being too nice or scared to follow through.