Legal Actions Against Unpaid Debts in Ohio

As a business in Ohio, there are several legal actions you can take against a customer who refuses to pay their debts. Here are some options:

1. Send a demand letter:

   Before taking any legal action, you can send a demand letter to the customer requesting payment of the debt. The letter should include the amount owed, the due date, and the consequences of not paying. This letter can act as a reminder to the customer of their responsibility to pay their debts and can often result in payment.

2. File a lawsuit:

   If the customer fails to pay and does not respond to the demand letter, you can file a lawsuit against them. In Ohio, the statute of limitations for filing a breach of contract lawsuit is six years from the date of the breach. You will need to prove that the customer owes the debt and that they have refused to pay it. If successful, the court can order the customer to pay the debt, plus interest and legal fees.

3. Work with a collection agency:

   Instead of filing a lawsuit, you can also work with a collection agency that specializes in debt collection. The agency will take over the process of collecting the debt and can use various tactics to persuade the customer to pay. However, be aware that collection agencies typically charge a fee for their services, and you may not receive the full amount owed.

4. Place a lien:

   If the customer owes you money for services or materials provided to their property, you can place a lien on the property. This lien will make it difficult for the customer to sell or transfer the property until the debt is paid. However, there are specific rules and procedures for placing a lien, and it is recommended to consult with an attorney before doing so.

5. Seek a judgment:

   If you have already filed a lawsuit and won, but the customer still refuses to pay the debt, you can seek a judgment. This judgment can be enforced by garnishing the customer's wages, bank accounts, or other assets.

It's important to note that there are limitations to these actions, and each case is unique. It's recommended to consult with an attorney to determine the best course of action for your specific situation.