Skip to content
Ask a question
All posts

What legal recourse do I have if a company that owes me money refuses to pay?

Picture of Chris Battis By   ·  1 minute read

If a Company Owes You Money: Legal Options Available

If a company owes you money and refuses to pay, there are several legal options available to you. Below are some of the most common options:

  1. Send a Demand Letter: A demand letter is a formal letter that requests payment of a debt. If the company owes you a specific amount of money, you can send a demand letter stating the amount owed, the reason for the debt, and the time frame for payment. If the company is willing to pay, this may be the easiest and fastest way to resolve the issue. If the company ignores the demand letter, you may need to consider other legal options.
  2. File a Lawsuit: If the company refuses to pay the debt, you may file a lawsuit to collect the money owed. This could be a small claims case if the amount owed is below the maximum amount for small claims court in your jurisdiction. Otherwise, you may need to file a lawsuit in civil court. You will need to provide evidence of the debt, such as invoices or contracts, in order to prove your case.
  3. File a Complaint with a Government Agency: Depending on the nature of the debt, you may be able to file a complaint with a government agency, such as the Department of Labor or the Federal Trade Commission. These agencies may investigate the company for violations of federal or state laws and may be able to help you recover the money owed.
  4. Hire a Collection Agency: You may also consider hiring a collection agency to pursue the debt on your behalf. Collection agencies typically charge a percentage of the debt as their fee, but they may be able to recover the money more quickly than if you pursue legal action on your own.

It is important to note that there may be limitations or exceptions to these legal options, depending on the specific facts of your case and the laws in your jurisdiction. Additionally, filing a lawsuit or pursuing other legal action can be time-consuming and expensive, so it is important to carefully consider your options and seek legal advice from a licensed attorney before taking any action.