When a Client or Business Owes You Money — Here’s What to Do
In business, not getting paid isn’t just frustrating—it can seriously impact your bottom line. Whether it’s an unpaid invoice, a bounced check, or a partner who failed to follow through, many Florida businesses face this challenge.
The good news? You have legal options—and a knowledgeable business lawyer can help you take action, recover funds, and protect your cash flow.
Here’s a step-by-step look at how to legally recover money your business is owed in Florida.
1. Send a Demand Letter
Before initiating legal action, your lawyer will often start with a formal demand letter. This document:
- Clearly states the debt amount
- References the underlying agreement
- Sets a deadline for payment
- Warns of potential legal action
Demand letters from attorneys carry weight—and often result in fast resolutions without court involvement.
2. Review the Contract or Agreement
Your attorney will analyze your contract to determine:
- Whether a valid legal obligation exists
- What the payment terms and deadlines were
- Whether interest, late fees, or attorney’s fees apply
- Jurisdiction and governing law clauses
Even without a written agreement, Florida law may still allow recovery under principles like oral contract, promissory estoppel, or unjust enrichment.
3. Negotiate a Settlement or Payment Plan
In many cases, your lawyer can help resolve the dispute through negotiation. A settlement might involve:
- Lump-sum payments
- Payment plans
- A written confession of judgment (giving you leverage if they default again)
This option preserves relationships and avoids litigation costs.
4. File a Breach of Contract Lawsuit
If the debtor refuses to pay or negotiate, your business attorney may file a civil lawsuit for:
- Breach of contract
- Account stated
- Unjust enrichment
- Other relevant commercial claims
Depending on the amount, your case will be filed in:
- County Court (under $50,000)
- Circuit Court (over $50,000)
If successful, the court may award you the full debt, interest, costs, and possibly attorney’s fees.
5. Obtain a Judgment and Enforce It
Winning in court gives you a judgment—but that’s just the beginning. To actually collect, your attorney may use:
- Wage garnishment (if the debtor is an individual or sole proprietor)
- Bank account levies
- Property liens or UCC filings
- Seizure of non-exempt business assets
Florida law offers strong post-judgment remedies—but they must be executed correctly and promptly.
6. Use Commercial Collections Strategically
Your lawyer can also help create or manage a commercial collections process, including:
- Tracking overdue accounts
- Sending late payment notices
- Coordinating with reputable collections agencies
- Ensuring compliance with state and federal collection laws
This helps you handle future delinquencies more efficiently and legally.
7. File a Mechanics Lien or UCC Filing (If Applicable)
If your business provided construction services, you may be entitled to a mechanics lien under Florida law. If you sold goods on credit, a UCC-1 filing can protect your claim to repossess or secure the items.
Both tools create leverage and priority over assets—especially if the debtor files bankruptcy or sells their business.
8. Protect Your Future with Stronger Contracts
To prevent these problems in the future, your business lawyer can help:
- Draft and negotiate airtight agreements
- Include payment deadlines, default clauses, and interest provisions
- Add attorney’s fees and jurisdiction clauses to strengthen your leverage
- Ensure compliance with Florida business law
Legal preparation is the best way to avoid legal recovery.
Don’t Let Delinquent Payments Drain Your Business
Unpaid debts and delinquent invoices can cripple your operations. At Black Rock Trial Lawyers we help Florida business owners take action quickly and legally—whether that means sending a demand letter, filing suit, or negotiating recovery.
to schedule a consultation with a Florida business and litigation attorney to discuss your collection strategy.
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