HELP: Need Options for collecting debt

[polladium]

While self-employed, I had a contract with a training company to perform certain services for their client. The services were completed. The client paid the training company. The training company has not paid me for my services. The debt is 13k. They have offered me a settlement: 40 cents on the dollar (5k). Since it has been 9 months, I don't know when I'll ever see any money if I don't accept the settlement. I don't understand how they can take the money from the client and not pay the people that performed the work. For example, 2k of the debt was a "cancellation reimbursement" as the client cancelled a class 24 hours prior to the start of the class. The client wanted to reimburse the Instructors for their time as they had set 1 week aside for this class. So the client paid the training company the money which was suppose to go to the Instructors. The training company has never paid the Instructors any of this money (we are contractors for the training company, not full-time employees). Doesn't seem legal. Maybe it is. In any case, should I take the settlement? If not, how do I go about collecting the money? Which option will give me the best return? My feeling is that the company will not get many new clients and may declare bankruptcy within the year. Help!

 

[gottago]

I would try to see what kind of assets the company has before you settle. If they have substantial real estate or other assets, I would sue them. If they have nothing, take the $5k and consider yourself lucky to have gotten anything.

 

[JasonRT]

Dear polladium,

Is the company still in business? Do they have other training clients? If so, you can sue them for the amount you are owed, plus attorney fees and court costs. You will then have the option of levying against their receivables. You can discover who their clients are through post-judgment debtor examinations and proceed with your levies.

If this is possible, I suggest you reject their offer of settlement, hire an attorney and file suit immediately. You might also want to advise them of how you intend to collect this money, it would be very embarrasing for them and they might decide to pay you off and save the trouble of the litigation.

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