Trouble getting paid in full

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ITO

Senior Member
Location
Texas
electricguy61 said:
If the check they give you says "paid in full", most courts accept this as the end of the discussion. Your endorsing the check means you agree to this as final payment. (I'm not a lawyer, but I love watching "The People's Court").
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Not really, the memo does not end their dept obligation. Its not like you could make a car payment and write "paid in full" on the check, then once the check clears declare your debt obligation to the bank settled.

If they want something that says ?paid in full? from you, don?t give it. What would need to happen is you present them with a full invoice when make an offer to settle you tell them that you will still show the balance on then invoice so that you can write off the loss on your taxes. If they baulk, play it up and ask why they would begrudge you the loss for tax purposes. Don?t tell them that you intend to file a 1009 on them later.
 
electricguy61

electricguy61

Senior Member
Location
Remotely running business in Bay Area, CA from Med
ITO said:
Not really, the memo does not end their dept obligation. Its not like you could make a car payment and write "paid in full" on the check, then once the check clears declare your debt obligation to the bank settled.

If they want something that says ?paid in full? from you, don?t give it. What would need to happen is you present them with a full invoice when make an offer to settle you tell them that you will still show the balance on then invoice so that you can write off the loss on your taxes. If they baulk, play it up and ask why they would begrudge you the loss for tax purposes. Don?t tell them that you intend to file a 1009 on them later.
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I believe that a car loan is secured, hence with a title and a lien in place, as opposed to service work.

Was there a written contract for these jobs? If not, this should be a lesson for the OP.
 
Cavie

Cavie

Senior Member
Location
SW Florida
brantmacga said:
i read somewhere that a lien in florida forces a foreclosure, and you get what's left after the primary leinholder is paid (if any). anyone know if there's any truth to that?
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Filing for a lein will not trigger a forcloser. It just puts you inline for payment whenever the house is sold. If you did not file a Notice to Owner before you started work, you cannot file a construction lein. If you do, you are in deep dodo. If you file a notice to owner on a new residential job the GC will get rid of you. Very few GC's will let you file Notice to Owner. It is against the law to do this but it happens. If you want to work, you play by their rules. Not a problem with comercial jobs.
 
I

ITO

Senior Member
Location
Texas
I got turkey on the brain...

Isn't it a 1099?

"Paid in full" in the memo might mean something on court TV but it does not mean much for trying to rip of contractors.

Yes the contract would have been something to have in place.
 
S

satcom

Senior Member
Cavie said:
Filing for a lein will not trigger a forcloser. It just puts you inline for payment whenever the house is sold. If you did not file a Notice to Owner before you started work, you cannot file a construction lein. If you do, you are in deep dodo. If you file a notice to owner on a new residential job the GC will get rid of you. Very few GC's will let you file Notice to Owner. It is against the law to do this but it happens. If you want to work, you play by their rules. Not a problem with comercial jobs.
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We had a Mason contractor in town, that had leins on owners for years, he passed away, and now his wife can hope she lives long eniough to collect.

"Very few GC's will let you file Notice to Owner."

We have our own contract, and terms for the owner to sign, we never agree to a GC's contract, if they don't agree we move on, and let them sucker in someone else, to rip off.
 
D

dbuckley

Senior Member
Location
Canterbury, New Zealand
ITO said:
"Paid in full" in the memo might mean something on court TV but it does not mean much for trying to rip of contractors.
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A quick google found that a judge noted that "Cashing a cheque is always strong evidence of acceptance [of a settlement offer] especially if it is not followed by immediate rejection."

Thus it appears if you take the "paid in full" cheque and bank it, rather than sending it straight back, you may be weaking (to the point of waiving) your future legal claim to the whole amount.
 
ceb58

ceb58

Senior Member
Location
Raeford, NC
ITO said:
Not really, the memo does not end their dept obligation. Its not like you could make a car payment and write "paid in full" on the check, then once the check clears declare your debt obligation to the bank settled.

If they want something that says ?paid in full? from you, don?t give it. What would need to happen is you present them with a full invoice when make an offer to settle you tell them that you will still show the balance on then invoice so that you can write off the loss on your taxes. If they baulk, play it up and ask why they would begrudge you the loss for tax purposes. Don?t tell them that you intend to file a 1009 on them later.
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I like the idea of sticking some jerk with a 1099 but you would need their social security number to make it fly with the state and fed. I.R.S.
 
Fulthrotl

Fulthrotl

~Autocorrect is My Worst Enema.~
Location
HB, CA (19 Hrs. 22 Min. from Winged Horses)
Occupation
E
ceb58 said:
I like the idea of sticking some jerk with a 1099 but you would need their social security number to make it fly with the state and fed. I.R.S.
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now, i may be wrong on this.... but if i 1099 someone, it is for money i have
paid them for services, so i'll have a canceled check for backup.

it isn't for money i *should* have received, but didn't. they weren't my
subcontractor, they were my customer. i can deduct the unpaid balance
in full as a bad debt, and that is my resolution as far as taxes are concerned.

as an employee, i can lien any property with a mechanics lien that i worked
on AS AN EMPLOYEE, not as a contractor.

to be able to lien, and have recourse, i must file a preliminary notice BEFORE
starting work, or i'm pretty much out of luck.

i never have, and i am sure none of you ever have either, done work for
cash.... but i heard a friend tell of someone he knew who did such a thing,
and at the end of the year, his "cash price on the side" guy called up and
wanted his SSN so he could 1099 him.... he told the guy to "just put my
pager number in the SS box on the 1099 form... that'll do nicely.:cool:

y'all have a nice thanksgiving, and four day holiday....... who me? the
phone started ringing finally.... i'm working this weekend... it's the only
way to catch up on stuff....
 
tonyou812

tonyou812

Senior Member
Location
North New Jersey
Its it illegal to post a list of Deadbeat customers? Someone should start a wall or web site and break it down by state by state. It can include companies, Homeowners or what ever. It can even break it down futher as to how many times past 90 days and what not. Is it legal? and if not why not? One time I saw a sign/awning customer that had a very proffesional looking sign of people that didnt pay him on his truck. Pretty neat idea IMO.
 
ivsenroute

ivsenroute

Senior Member
Location
Florida
A solid, legal contract for EVERY job is needed that spells out exactly what happens if they don't pay is always needed, regardless of the amount of the job.

You should all have an attorney who makes up your contract with clients.

IMHO
 
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