How do I collect from a customer who isn’t paying?

Lexi, Chatbot

I’m sorry to hear about the issue with your customer not paying invoices. Have you tried sending any reminders or follow-up emails?

Lexi, Chatbot

How many invoices are currently outstanding from this customer?

Lexi, Chatbot

Is there anything else the Lawyer should know before I connect you? Rest assured they’ll be able to help with your unpaid invoices.

Angelo M

Greetings! I hope this message finds you well. I am the expert assisting you. I'm thrilled to have the opportunity to help you with your situation and provide the support you need. Just a quick reminder — please respond to all my messages so we don’t get disconnected. Thank you for your patience, and I look forward to working with you.

Angelo M

When a customer defaults on payment, especially on invoices tied to services or goods provided, placing a lien on their property can be an effective tool to secure your debt — but it must be done properly, following the laws of the state where the property is located.

A lien is a legal claim or hold on a property that prevents the owner from selling or refinancing it without first paying off the debt. However, simply placing the lien may not be enough to get paid. It often requires a formal filing process, notice to the customer, and sometimes a legal proceeding to enforce or foreclose on the lien if payment is still not made.

Depending on the type of lien (mechanic’s lien, materialman’s lien, or judgment lien), there are deadlines and specific procedures you must follow, including sending notices and filing the lien within a certain timeframe after the work or delivery.

If you haven’t already, it’s crucial to verify that your liens comply fully with local laws to avoid them being challenged or invalidated. You might also consider pursuing a formal lawsuit to obtain a money judgment, which can then lead to wage garnishment or bank levies if the lien does not prompt payment.

If the customer still refuses to pay, court enforcement of the lien or judgment may be necessary.

I hope this helps answer your questions and concerns. Is there any part of my response you’d like me to clarify, or do you have any other questions on this topic?

Angelo M

Yes, you can still take your customer to court even if you don’t have a written contract.

While having a written agreement makes things clearer and easier to prove, the law generally recognizes that contracts can be oral or implied based on the actions and circumstances between the parties.

If you provided goods or services and the customer accepted them but didn’t pay, that can create what’s called an implied contract or a contract based on “quantum meruit” — meaning you deserve payment for the value of the work or goods provided.

In court, you would need to prove that there was an agreement — whether written, oral, or implied — that you would be paid for your services or products. Evidence such as invoices, emails, text messages, or other communications can help establish that agreement. The court will look at whether the customer knowingly accepted your goods or services and whether you reasonably expected to be paid.

The absence of a written contract can make the case a bit more challenging because you don’t have clear documentation spelling out the terms, but it doesn’t prevent you from pursuing a claim. The key is to show that the customer received and benefited from your goods or services and that payment was expected and overdue.

Angelo M

That’s a great question, and it gets into some finer points of contract and commercial law.

Generally speaking, charging interest on overdue balances without a written contract can be tricky but is sometimes possible, depending on the circumstances and the laws in your jurisdiction.

Without an explicit agreement — written or oral — setting an interest rate on unpaid invoices, courts usually won’t allow you to automatically charge interest. Interest is typically something both parties agree upon in advance, so if there’s no clear contract term about it, you might not be able to charge it.

However, there are exceptions. Some states allow “statutory interest” or “prejudgment interest” to be applied to debts when a payment is overdue, even if the contract doesn’t specify it. This compensates the creditor for the time value of the money lost due to nonpayment. The rate and conditions for statutory interest vary depending on local law.

Another possibility is if your invoices or business terms — such as standard terms and conditions — clearly state that interest will accrue on overdue amounts. Courts may treat that as a valid contract term even without a signed agreement. This is why many businesses include payment terms on their invoices, such as “past due invoices will incur interest at X% per month.”

If none of those apply — no contract term, no invoice language, and no applicable statute — it’s unlikely a court would allow you to charge interest. You would probably only be able to recover the principal amount owed.

Angelo M

You’re very welcome! Thank you so much.