FLRussianHubby
Member
What is the name of your state? Florida
My business is a small class-c corporation that specializes in aviation software. In addition, we perform computer support and hardware sales to our clients.
We have a client that is in severe financial trouble. They currently owe us about $11,000 in unpaid invoices, all of which are 90 days overdue, and many of which are >180 days overdue. About 60% of the invoices are for real property (computer equipment and purchased software). The rest is labor.
We have given them a lot of time to repay. Unfortunately, their situation is worsening rapidly. They recently stopped paying us for onsite support, due to lack of money. Creditors are piling up, most of their aircraft have been reposessed, they are having troubles making payroll, and their reputation is in severe trouble. (in this industry, reputation is everything--if nobody will work with you, your business will fail).
Unfortunately, we no longer have an option but do whatever we can to collect on the invoices. We are a small business and such a large debt, if it goes uncollectible, would do severe damage to our operations. So, we are currently evaluating our options. So far, we have come up with this:
1) We could reposess the real property that has not been paid for. What is the proper procedure for doing this? We do have after-hours access to the facility but we definitely want to do it legally.
2) One of our other clients (whom is also owed money by our failing client) suggested that we could get a lien put on one of their aircraft. I have searched the internet and have found conflicting and incomplete information on this. Is there a type of lien that could be used for this? Our equipment and software are not directly related to the aircraft itself, although they do maintain the maintenance, scheduling, and invoicing records for the aircraft. (so, I don't think a mechanic's lien would apply).
Whatever we do needs to be done quickly. There is a real danger that the company could file bankruptcy. And, their reputation has gone so badly that I doubt that reorganization really could be an option any more. (nobody in the area that I personally know of will do business with them even if they became solvent again).
Thank you in advance for whatever information you may have...
My business is a small class-c corporation that specializes in aviation software. In addition, we perform computer support and hardware sales to our clients.
We have a client that is in severe financial trouble. They currently owe us about $11,000 in unpaid invoices, all of which are 90 days overdue, and many of which are >180 days overdue. About 60% of the invoices are for real property (computer equipment and purchased software). The rest is labor.
We have given them a lot of time to repay. Unfortunately, their situation is worsening rapidly. They recently stopped paying us for onsite support, due to lack of money. Creditors are piling up, most of their aircraft have been reposessed, they are having troubles making payroll, and their reputation is in severe trouble. (in this industry, reputation is everything--if nobody will work with you, your business will fail).
Unfortunately, we no longer have an option but do whatever we can to collect on the invoices. We are a small business and such a large debt, if it goes uncollectible, would do severe damage to our operations. So, we are currently evaluating our options. So far, we have come up with this:
1) We could reposess the real property that has not been paid for. What is the proper procedure for doing this? We do have after-hours access to the facility but we definitely want to do it legally.
2) One of our other clients (whom is also owed money by our failing client) suggested that we could get a lien put on one of their aircraft. I have searched the internet and have found conflicting and incomplete information on this. Is there a type of lien that could be used for this? Our equipment and software are not directly related to the aircraft itself, although they do maintain the maintenance, scheduling, and invoicing records for the aircraft. (so, I don't think a mechanic's lien would apply).
Whatever we do needs to be done quickly. There is a real danger that the company could file bankruptcy. And, their reputation has gone so badly that I doubt that reorganization really could be an option any more. (nobody in the area that I personally know of will do business with them even if they became solvent again).
Thank you in advance for whatever information you may have...