How would we go about collecting money that is owed to us by a corporate company?

UPDATED: Oct 25, 2011

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How would we go about collecting money that is owed to us by a corporate company?

We are a small heating and A/C installing company that was subcontracted by a corporate company to do their installs. They now owe us money either for complete jobs and short payments on other jobs. We have had a few meetings with their people who were in charge of paying us, have walked out of those meetings being promised we would see payments soon, still have not received anything.

Asked on October 25, 2011 under Bankruptcy Law, Massachusetts


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If you can't work matters out voluntarily, you sue them. Assuming you can prove (1) you were hired to do work; (2) the terms under which you did the work (e.g. the contract), including what and when you should have been paid; and (3) that you did the work to spec or contract, you should be able to recover from them. Note that you can only sue when they are late to pay; e.g. if there is any job for which they still have time to make payment without violating terms, it's premature to sue on that job.

Depending on the amount owed, you may choose to sue in small claims court, representing yourself, or in county court, with an attorney. It is possible that getting the summons and complaint will  motivate the company to pay, or at least offer a settlement; you should think, in advance,  about what settlement or partial payment you would find acceptable to not continue the lawsuit. You might also think about whether you want too continue doing work for a company that is not paying you.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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