QUESTION
I run a small business and would like to collect on a small bad debt a former client does not want to pay. It's $500, is a lien a better way to go?
Asked on Jan 31st, 2022 on Business Law - Michigan
More details to this question:
I run a small business and would like to collect on a small bad debt a former client does not want to pay. They're in WI, I'm in MI, it's approximately $500 and I see filing in the former clients county in a small claims court costs about $120. I understand I can also place a lien on the business(?), Would I have more luck with just placing a lien and taking my chances or is it always advisable to do the small-claims option and take my chances with a judge? Is there a better option?
1 ANSWER
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if you are collecting in WI, you will have to follow that state's law.
usually only certain businesses can file a lien, this can force you into small claims to get a judgment first and THEN you can file a lien in support of the judgement
Answered on Feb 01st, 2022 at 5:30 PM