Entrepreneurship & Small Business

Customer is not paying outstanding invoice. What do I do ? Help!

  • Last Updated:
  • Nov 25th, 2018 9:07 pm
Deal Guru
Aug 2, 2010
14008 posts
4003 upvotes
Here 'n There
FrancisBacon wrote:
Nov 24th, 2018 9:43 am
Wrong again. I have lots of experience collecting on judgements. Including collecting on ones that are so old that there was more due on interest and fees than in principal.

But once someone has bought a house, they will pay. The bank won't take kindly to having a judgement mortgage registered on the property. The wife won't take kindly to a bailiff coming repeatedly.
Operative words 'once someone has bought a house'. Shows how little you know about the process. You have zero experience in collecting on judgements because all your information is dead wrong. The house has to have been bought first for the writ to be filed against it and by that time the mortgage is already on and the writ stands in latter priority. Banks do not care about what subsequent charges are on the property since they maintain their priority. Ever heard of 2nd, 3rd, 4th, 5th mortgages? Banks don't care about them either. Further more, bailiffs are never involved. It's only the Sheriff and once a writ is filed he does not visit the property and come to visit the property at all so there is no wife not 'taking kindly to the bailiff coming repeatedly'. When the property is sold the lawyer involved on the sell side is obligated to pay out the charges in order of priority and that includes writs filed. Sheriffs have nothing to do with the property itself and never visit and certainly not Bailiffs.

So, a number of things have to happen here: 1. They have to own or purchase a property, you have to know that and find the property as it could be out of province and then they have to then sell it. 1 may not happen and if it does 2 could take many years.
Deal Addict
Feb 25, 2007
1156 posts
575 upvotes
Ottawa
Before leaping into action, step back and ask yourself why do you think this customer isn't paying...

Are they financially in trouble? Temporary cash flow problem (they need to get paid first...) or a more structural problem?
Are they dissatisfied with the product/service you provided, and possibly being passive-aggressive about it?
Are they just a bureaucratic basket case?
Does further due diligence on them indicate they routinely slow-pay or try to get by without paying?

Collections agency (for a cut of the $) or SCC (with some expense and hassle) might be the answer, but before you jump on one of these, see if you can sort it out yourself by going to the underlying issue. It seems you've tried a stab in the dark with relaxed payment terms, but who knows if that's what the problem is.

We don't know what kind of business you do and what kind of entity the customer is. If it's an organization, is there anyone else there you can contact? Can you phone, say from a landline somewhere else if your calls aren't being picked up? (It's always easier to ignore emails or texts, or pretend to oneself, "Oh yeah, I need to deal with that. I'll do it real soon". Can you visit in person (if it's worth it)?

I'm not dissing collections agency or SCC; sometimes it's the right answer, or the easiest answer to move on with your life with closure. But in my field - B2B consulting - it's usually something else than just being a deadbeat, and you get paid by your own perseverance and solving the underlying issue rather than by outsourcing it.
Deal Addict
May 12, 2014
1876 posts
1292 upvotes
Montreal
eonibm wrote:
Nov 24th, 2018 3:15 pm
Operative words 'once someone has bought a house'. Shows how little you know about the process. You have zero experience in collecting on judgements because all your information is dead wrong. The house has to have been bought first for the writ to be filed against it and by that time the mortgage is already on and the writ stands in latter priority. Banks do not care about what subsequent charges are on the property since they maintain their priority. Ever heard of 2nd, 3rd, 4th, 5th mortgages? Banks don't care about them either. Further more, bailiffs are never involved. It's only the Sheriff and once a writ is filed he does not visit the property and come to visit the property at all so there is no wife not 'taking kindly to the bailiff coming repeatedly'. When the property is sold the lawyer involved on the sell side is obligated to pay out the charges in order of priority and that includes writs filed. Sheriffs have nothing to do with the property itself and never visit and certainly not Bailiffs.

So, a number of things have to happen here: 1. They have to own or purchase a property, you have to know that and find the property as it could be out of province and then they have to then sell it. 1 may not happen and if it does 2 could take many years.

Sigh. So much wrong, such poor reading comprehension. But a great illustration of the Dunning-Kruger effect.

I don't have time to correct everything in your post, never mind what you'll post next. You can have the last word. Everyone else who cares can just check on their own or I'll be happy to answer questions if I can.

Of course I gave an example of a debtor buying a house one day, because most Canadians eventually buy one and once a judgement debtor does, it's a slam dunk to collect in my experience.

No writ will ever have to be filed. I've never had to. Rational homeowners know that the game is up when I simply mention a judgement mortgage and will pay well before then.

The bailiff is used to serve papers and to seize "moveables" (TV, etc). He might need to visit a few times to get the message accross. Have I ever proceeded all the way to a sale of possessions? Of course not! Everyone knows you'll get cents on the dollar.

But most importantly the debtor knows this. So when the bailiff comes to inventory their stuff, the wife works her magic and somehow money appears quite quickly. That's real life.

And banks do care about 2nd mortgages. A lot. Have you ever read a mortgage contract? Ever wonder why some banks require their consent before you get one?

Not to mention there's no need to wait until a sale to be ranked first. Just wait until the homeowner wants to refinance with a different bank! Presto you're at the front of the line and no bank will lend a cent under these conditions. Then you get paid pronto.

Many banks also frown on a judgement being on a credit report. I once got paid from across the country just so the guy could clear his report. He contacted me out of the blue!

Finally, even if you have to wait 10 years to get paid, a judgement mortgage is the best investment you'll make: guaranteed payment with high interest.
Deal Guru
Aug 2, 2010
14008 posts
4003 upvotes
Here 'n There
FrancisBacon wrote:
Nov 25th, 2018 1:30 pm
Sigh. So much wrong, such poor reading comprehension. But a great illustration of the Dunning-Kruger effect.

I don't have time to correct everything in your post, never mind what you'll post next. You can have the last word. Everyone else who cares can just check on their own or I'll be happy to answer questions if I can.

Of course I gave an example of a debtor buying a house one day, because most Canadians eventually buy one and once a judgement debtor does, it's a slam dunk to collect in my experience.

No writ will ever have to be filed. I've never had to. Rational homeowners know that the game is up when I simply mention a judgement mortgage and will pay well before then.

The bailiff is used to serve papers and to seize "moveables" (TV, etc). He might need to visit a few times to get the message accross. Have I ever proceeded all the way to a sale of possessions? Of course not! Everyone knows you'll get cents on the dollar.

But most importantly the debtor knows this. So when the bailiff comes to inventory their stuff, the wife works her magic and somehow money appears quite quickly. That's real life.

And banks do care about 2nd mortgages. A lot. Have you ever read a mortgage contract? Ever wonder why some banks require their consent before you get one?

Not to mention there's no need to wait until a sale to be ranked first. Just wait until the homeowner wants to refinance with a different bank! Presto you're at the front of the line and no bank will lend a cent under these conditions. Then you get paid pronto.

Many banks also frown on a judgement being on a credit report. I once got paid from across the country just so the guy could clear his report. He contacted me out of the blue!

Finally, even if you have to wait 10 years to get paid, a judgement mortgage is the best investment you'll make: guaranteed payment with high interest.
Nice try. The fact that you state that a Bailiff shows up when you have a judgement filed against you proves you don't know anything. A simple kindergarten google search shows you are totally out to lunch.

You're not doing anyone any favours by spewing nonsense.
Deal Addict
May 12, 2014
1876 posts
1292 upvotes
Montreal
eonibm wrote:
Nov 25th, 2018 3:32 pm
Nice try. The fact that you state that a Bailiff shows up when you have a judgement filed against you proves you don't know anything. A simple kindergarten google search shows you are totally out to lunch.

You're not doing anyone any favours by spewing nonsense.
Sorry, couldn't resist such an obvious slam dunk.

Under judgement hypotheques.
"L’avis est présenté avec une copie du jugement. Il doit être signifié au débiteur. "

Source: real lawyers:
http://www.lgra.ca/publication/les-hypotheques-legales/
Deal Guru
Aug 2, 2010
14008 posts
4003 upvotes
Here 'n There
FrancisBacon wrote:
Nov 25th, 2018 7:07 pm
Sorry, couldn't resist such an obvious slam dunk.

Under judgement hypotheques.
"L’avis est présenté avec une copie du jugement. Il doit être signifié au débiteur. "

Source: real lawyers:
http://www.lgra.ca/publication/les-hypotheques-legales/
Hilarious!

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