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Small business - how to pursue collection action?

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genalewis

Member
What is the name of your state (only U.S. law)? IN

I work for a small business (we will call it "ABC") that fortunately does not have to deal with debt collection very often, so this is new territory for us. We are partnered with a company ("XYZ") in another part of the state. A salesman with that company sells some of our product under the other company's name, and we provide the product and invoice for it. Our invoices are sent as XYZ with remit to ABC in an effort to be less confusing to the end user's accounting department.

One of these XYZ customers that ABC is servicing is seriously past due on almost $60K worth of product. We need to act now before our time frame expires to file a mechanic's lien. However, I need to know how to file the paperwork correctly. Do we file the lien as ABC or XYZ? If we have to file as XYZ, can I file it for them (with their consent, of course) or does a documented employee of that company need to do it for us?
 


Artemis_ofthe_Hunt

Senior Member
What is the name of your state (only U.S. law)? IN

I work for a small business (we will call it "ABC") that fortunately does not have to deal with debt collection very often, so this is new territory for us. We are partnered with a company ("XYZ") in another part of the state. A salesman with that company sells some of our product under the other company's name, and we provide the product and invoice for it. Our invoices are sent as XYZ with remit to ABC in an effort to be less confusing to the end user's accounting department.

One of these XYZ customers that ABC is servicing is seriously past due on almost $60K worth of product. We need to act now before our time frame expires to file a mechanic's lien. However, I need to know how to file the paperwork correctly. Do we file the lien as ABC or XYZ? If we have to file as XYZ, can I file it for them (with their consent, of course) or does a documented employee of that company need to do it for us?
Another option for your company is to contract through a collection agency who retains attorney services. Filing mechanics lein (which I am not sure is the best avenue anyway) can be tricky and with a bill of $60k I would want someone looking at this who is well versed in commercial collecting.
 

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