We are a small HVAC company located in Texas. We have a lot of past due unpaid debt. We have reached out and resent the invoices multiple times but we have about collectively $200,000 in debt between dozens of customers going back to 2023. What would be the first course of legal action to take?
April 7, 2025
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It sounds like you’re taking the right steps by sending formal demand letters to customers regarding the overdue payments. The next legal step would likely be to file a claim in small claims court for individual debts if the amounts are within the small claims limit, or potentially pursue civil litigation if the amounts exceed those limits. (which in Texas is $20,000 per Sec. 27.031)
For the customer who sold their business and is no longer reachable, you might want to check if they have a legal obligation to settle the debt through the sale, or if there are any guarantors or personal assets you could pursue. It might be time to look at enforcement options like a lien or wage garnishment if judgment is obtained.
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We are a small HVAC company located in Texas. We have a lot of past due unpaid debt. We have reached out and resent the invoices multiple times but we have about collectively $200,000 in debt between dozens of customers going back to 2023. What would be the first course of legal action to take?
I’m sorry to hear about the challenges you’re facing with unpaid debt. Have you sent any formal demand letters to these customers regarding the overdue payments?
We are working on that now.
Have you kept detailed records of the invoices, communications with the customers, and any agreements or contracts related to the outstanding debts?
Yes.
Is there anything else the Lawyer should know before I connect you? Rest assured they’ll be able to help with your debt collection.
One of the customers sold their business and we are not able to get a hold of them anymore. Each invoice states payment due within 30 days of being sent. No penalties. That’s it.
Hello! My name is TJ and I’m an attorney. Thanks so much for the opportunity to assist you! I reviewed what you wrote and I’m about to post my initial answer.
While I finalize that, can you please let me know if you’re available for an online chat right now?
IMPORTANT: If you don’t hear from me immediately after your reply (now or anytime throughout our chat), not to worry because I’m still here, and I will absolutely respond! I’m just being thorough in my review of your situation and in preparing my response (which sometimes requires a bit of research). Please note that if you request a second opinion, then our chat will be closed and I won’t be able to respond. So please be patient with that option. Thanks!
It sounds like you’re taking the right steps by sending formal demand letters to customers regarding the overdue payments. The next legal step would likely be to file a claim in small claims court for individual debts if the amounts are within the small claims limit, or potentially pursue civil litigation if the amounts exceed those limits. (which in Texas is $20,000 per Sec. 27.031)
For the customer who sold their business and is no longer reachable, you might want to check if they have a legal obligation to settle the debt through the sale, or if there are any guarantors or personal assets you could pursue. It might be time to look at enforcement options like a lien or wage garnishment if judgment is obtained.
If you decide to file a lawsuit, it’s important to have all of your invoices, communications, and any records of attempts to collect on the debt ready for presentation in court. The more documentation you have, the better your chances of success.
