Can I sue a client for not paying?

Asked by: Herminia Quitzon  |  Last update: May 20, 2025
Score: 4.4/5 (64 votes)

You can only file in small claims court if the amount owed to you is under a certain dollar amount. The maximum amount varies from state to state, but it's typically between $2,500 and $25,000. If the client you're suing doesn't show up in small claims court, you will win the case by default.

Can you sue a client for non-payment?

Sometimes invoices are past due 30 days, 60 days, or even 90 days, and they've not been paid. Perhaps you've sent multiple invoices, followed up by both phone and email, and you're still not paid. You do have the option to sue for non-payment, but sometimes that needs to be a last resort option.

Is it worth suing someone with no money?

Essentially, you might think suing someone with no money is futile, but that's not the case. The law protects your rights and allows you to seek compensation if someone causes you harm or loss, regardless of their financial status.

What can I do if my client doesn't pay?

Involve a third party: If communication and negotiation with the client has not resolved the issue, you may consider involving a third party, such as a mediator or a collection agency. Take legal action: As a last resort, you may consider taking legal action if the client continues to refuse to pay.

What happens if you sue someone and they can't pay?

The California statute of limitations for filing a judgment is ten years. If the debtor cannot pay or complete payment within this time, you must renew the judgment. The judgment must continue to be renewed to ensure the debtor pays the full amount.

What To Do if a Client Doesn't Pay You

32 related questions found

How do I sue if I don't have money?

Contingency means that your lawyer will agree to take on your case and represent you without requiring any payment upfront, allowing you to file a case with no money. Your lawyer will only receive payment for their services if and when you reach a positive resolution and some form of compensation in your case.

Can you go to jail for not paying someone who sued you?

While debt collectors can no longer have you jailed or threaten to have you arrested for not paying your debts, there are a few instances in which you can be incarcerated with debt as the underlying cause. For example, a debt collector can sue you and, if you fail to comply with court orders, you could get jail time.

How do you deal with not being paid?

If there's no policy, raise the problem as soon as possible with your manager, payroll team or someone in HR. It's usually best to first raise the problem informally by talking with your employer. This can help resolve it quickly if there's been a mistake.

How do you deal with clients who don't want to pay?

Here are 8 ways to ensure your clients pay you on time and what to do if they don't:
  1. Research the Client. Before you agree to work with someone, research the person. ...
  2. Make a Contract. ...
  3. Get Payment Upfront for Larger Projects. ...
  4. Charge Late Fees. ...
  5. Try Other Contact Methods. ...
  6. Stop Working. ...
  7. Go for Factoring. ...
  8. Seek Legal Action.

How do I blacklist a non paying client?

Rules to remember before you can list a defaulter
  1. You cannot list below an amount of R100.
  2. You must send out a final demand letter or a (Section 129) to the individual or company.
  3. The letter is available under TransUnion.
  4. You must wait a full 28 days for the debtor to respond before you can list.

How much money is enough to sue?

In general, claims are limited to disputes up to $5,000. However, natural persons (individuals) can claim up to $10,000. Corporations, partnerships, unincorporated associations, governmental bodies, and other legal entities cannot claim more than $5,000.

Is suing someone expensive?

The Average Cost of a Lawsuit

On average, a lawsuit costs approximately $10,000 for a simple suit. However, numerous factors can influence the cost of your lawsuit.

Who pays in a civil lawsuit?

The rule for attorneys' fees is that each side must pay their attorneys' fees unless a contract or statute allows an award of attorney fees. A losing party pays attorney fees only if the winner is specifically given the right to recover legal fees in a contract between the parties or through a state or federal law.

Can a lawyer take you to court for non-payment?

Should the debtor not reply to the demand letter or not make the payment, your attorney may bring legal action. Making legal documents and submitting them to the court is required for this. The lawsuit will detail the nature of the dispute, the amount owed, and the legal grounds for suing.

How to collect overdue payments from clients?

Tips for collecting outstanding and unpaid invoices
  1. Set clear terms. ...
  2. Send reminders. ...
  3. Institute a late fee. ...
  4. Send an overdue invoice (with a different layout) ...
  5. Go analog. ...
  6. Offer flexible payment options. ...
  7. Seek professional legal advice.

How do you motivate a customer to pay?

8 Simple Ways to Encourage Debtors to Pay on Time
  1. Build Strong Client Relationships. ...
  2. Set Clear Payment Terms. ...
  3. Invoice Promptly. ...
  4. Make it Easier for Clients to Pay. ...
  5. Consider Offering Incentives for Early Payments. ...
  6. Implement Penalties and Late Payment Fees for Slow-Paying Clients. ...
  7. Keep in Touch and Send Friendly Reminders.

What happens if a client refuses to pay?

When all else fails, a collection agency can collect your debt for you. Hiring a collection agency is often the last stop before litigation for businesses that need to settle an unpaid invoice. These agencies specialize in collecting payments over 90 days past due.

How do you get money from a client who won't pay?

How to collect money from clients who won't pay
  1. #1: Send a reminder email right away. ...
  2. #2: Follow up with a phone call. ...
  3. #3: Contact the billing department directly. ...
  4. #4: Pause or cancel future work. ...
  5. #5: Offer a payment plan. ...
  6. #6: Offer an incentive for payment. ...
  7. #7: Send a formal demand letter.

What to do when a client is refusing to pay?

There are several steps you can take for a client who won't pay:
  1. Write a very clear email and reattach your contract. Send a friendly email reminder to a customer for payment. ...
  2. Work with a lawyer to send a payment demand letter. ...
  3. Take legal action. ...
  4. Hire a debt collector.

How do you deal with non paying clients?

Fostering open communication with your customers can save you from hefty legal fees and court dates in the end.
  1. Contact the customer. ...
  2. Assess interest or late fees on unpaid invoices. ...
  3. Send a formal debt collection letter. ...
  4. Call a collection agency. ...
  5. Take legal action for nonpayment of invoices. ...
  6. Pay attention to your staff.

Can you refuse to work if you haven't been paid?

Legally, you may have the right to refuse work if your employer hasn't paid you, but this can vary by state. Always seek legal advice before taking such actions.

What can a contractor do if a client doesn't pay?

What to do if a client refuses to pay you
  1. Communicate with the client. ...
  2. Try to find a reasonable solution. ...
  3. Sue the client in small claims court. ...
  4. Get everything in writing. ...
  5. Get a deposit. ...
  6. Choose your clients wisely.

Can you go to jail for debt in Jamaica?

[6] It is clear from a reading of these sections of substantive, not procedural, law that no one is to be committed to prison for the failure to pay a judgment debt unless it is proved that since the judgment that person had the means to pay but has refused or neglected, or refuses or neglects, to pay the same.

How often do debt collectors take you to court?

More frequently than most consumers probably realize. While precise statistics are difficult to come by, legal experts estimate that several million debt collection lawsuits get filed across the United States every single year.

Can you go to the police if someone owes you money?

It is a civil matter, not criminal, so the police are not going to get involved. You have to sue and go after her and get a judgment. If she does not pay, you can then enforce it and go after money or assets.