Some options in deciding how to secure a debt that is owed to you/your options in debt collection:

File a Lien: if it hasn’t been more than 8 months since the last day of work. The enforceability of the lien depends on a number of other factors but filing it is an option. For more on mechanic’s liens, see our construction industry articles HERE.

Write Off the Debt: If someone has no money you can’t squeeze blood from a stone — in which case you might be better off just writing off the debt.

Litigate in Small Claims Court: A quick lower cost process is small claims. Just reduce the balance due to the small claims threshold ($3,000 – $5,000) and file a lawsuit yourself in small claims court.

Litigation: If small claims court is not an option, file a lawsuit in the appropriate court, obtain a judgment and then make a decision then, or at a later time, on whether you’re going to enforce your judgment. You have 20 years.

Make a Settlement Offer: Some options are (a) offer a significantly reduced balance of $______ if the balance is paid quickly within ______ days; (b) Offer/suggest a specific monthly payment plan.

Confession of Judgment: In some cases you might require or be able to negotiate a confession of judgment, a helpful tool in ensuring a quick debt recovery process. For more on what a confession of judgment is, click HERE.

NOTE: There is no harm in making an offer. It reduces the guessing game and back and forth. It will never hurt you to try to settle a case.

A few things to keep in mind:

(a) you are entitled to legal fees only if the contract (or an applicable statute) says you are entitled to include legal fees as part of your claim
(b) consider the legal fees or collection fees if you hire a third-party to work with you in collecting that money