Comment by TravelTechGuy
6 hours ago
Sadly every consultant can tell you at least one (hopefully only one) story about clients who refuse to pay. Either outright, or with some excuse about you "not delivering", or they "not liking" what you delivered. I have one of those stories as well.
My SO has her own story - she ran into a guy whom she later found out does it as a policy: hires people, never pays, threatens to sue them if they publish their story. Her lawyer told her to just forget about it.
It's then that find out the limitations of our legal system: if the client is international, forget about it. If they're out of state, prepare to deal with an expensive legal process taking place where the laws may not always favor you. And even if it's local, and you won in a small claims court - good luck collecting.
I have periodic payments built into all my contracts, with the final payment taking place after acceptance tests, but before me surrendering all materials and code. I won't say this is a 100% bulletproof solution, but the alternatives suck.
> If they're out of state, prepare to deal with an expensive legal process > you won in a small claims court - good luck collecting
While these statements are generally true, it shouldn't dissuade anyone from pursuing these remedies.
Years back I took a small programming contract with a 'friend of a friend' that ended with me delivering what was asked and them suddenly not having any money, claiming the company was going under.
They were in another state. I filed small claims by mail and they never responded, so I got a default judgement without ever needing to travel, for under $500 in total fees. The judgement is worthless though, right? Probably...
Fast forward about a month and they had an investor willing to float the company for a while longer, but now my judgement is a giant wrench - the investor won't give them money as long as this is hanging around. I got the cofounders to jointly take on the debt personally (after consulting with a lawyer that this was possible - he didn't even charge for the consult!) and I vacated the judgement against the LLC.
A short while later the LLC went under anyway, but since I had both founders' personal finances under my thumb (which would allow garnishing wages, obtaining leins, etc.) I was able to recoup the entire contract amount from them personally.
I wouldn't have spent more than about $1,000 chasing that money down, but a few hours of paperwork and a few hundred dollars ended up making it easily worth my while.