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Business to Business Debt Collection -Texas

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I own a small Texas incorporated gift manufacturing business. I have an account that is 150 days overdue and has made one partial payment about two months ago. They6 will not return calls and/or faxes. The Balance is now $2500 and I've already paid salaries, material and taxes on the sale. The non paying company is a large well know gift store located in several cities in Texas.
Is small claims court my only option and are additional damages an option? I understand Texas allows settlements of triple damages.


Senior Member
Generally, treble damages are allowed for cases where there was a violation of the Texas Deceptive Trade Practices Act and a few other violations. Non payment of a bill is not one of them, unless you can show some exemplary damage claims, as in fraud, etc.

I would suggest that you write the vendor a polite but stern demand letter (certified RRR) including the invoices and payment history. Give him a reasonable (10 business days from receipt??) time to respond with payment. Close with something like "If payment is not received within 10 business days of receipt, we will be forced to consider litigation to collect on these invoices. We would much rather not take this legal action, but will do so if necessary."

Then, wait the 10 days from delivery. In the interim, you should contact your local Justice Court and ask for a Small Claims package (forms, instructions, etc.). Also, go by your local library or bookstore and get a book titled "How to Win in Small Claims Court in Texas" (latest is 2000 edition). It is a well-written book in laypersons language including forms and how-to's.

If you need to enforce the judgment after you win, check out my website below.

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