Client Won’t Pay Us: Should I Sue My Client?
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- čas přidán 2. 08. 2024
- Client Won’t Pay Us: Should I Sue My Client?
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Make sure to write the debt off on your taxes and report it to the IRS as a forgiven debt so they then owe taxes on that amount. It's not a big win but it's something.
That can trigger them and get loud and affect his reputation like he fears. Forgive means forgive, really have to watch the end to understand dave perspective
@@desistang8794oh no, he forgave a million dollars but made them pay 200k in taxes instead (no idea the dollar amount, just a rough estimate)
This sounds like a good idea, but to be honest, I only have a very basic understanding of how this practice would work…..can a business automatically write off any unpaid invoice/bills for their services, or does this only apply to business using an accrual method rather than cash method of accounting?
What are you talking about
I’m super positive the client who’s screwing this guy, is Jewish. Had it happen to me too
I would turn it over to a collection agency. They will find out if they have assets and would love a piece of 1M.
Nope. No emotion. No friends. Purely principle, I'm coming for your butt. You wanna get loud? Let's get loud so the people in back hear this all very clearly.
corporate bullies. treat them like bullies, everyone in the business knows what they are, they are just afraid to go after them.
If your customer is that bad, everyone in the industry already knows it. And if they're "very loud" it's probably because they're trying to keep you and their other creditors away. Finally, Your partner who's close to them should collect, or maybe it's time to dissolve the partnership.
In other words, they are the bully on the playground. And what better way to prove your a Good guy in the space than not being bullied.
Sell the debt to a collector so the company has to deal with them, and at least you'll get a fraction of the money back
Exactly. This is the way to go.
Brilliant
Yea ok
My thoughts exactly.
Curious how it got this far. When the bill was a couple hundred thousand why not stop providing services unless/until they paid.
I am curious about that as well. As a business owner myself, I was owed money by a client who wanted me to keep providing services to them. I told them I'd be happy to provide services again once they became current on payment.
The sale of a business
He was intimidated into this position
I would ask for 50% upfront and the other 50%after the work is completed n signed off (confirmation n proof)
This isn’t buy now pay later .. f that. I got bills!!!
And you have the option to become even louder. If a client legally owes you money you must enforce payment. On principal.
Let 1 million dollars GO???? Nope- I would do the work to get my money owed to me. They may tell a story to discount your business, well- tell your story- there are probably other businesses that may come forward & expose them for the thieves they are! Never reward bad behavior!!!
Better yet sue them for defamation if they lie
Spoken like someone who’s never had to rely on the legal system to get made whole from fraud. Let’s just say that it doesn’t work like you might think it would from watching movies. In reality, our justice system makes it close impossible to successfully sue for fraud, even when the fraud can be easily proven. It probably works this way to encourage fraud. Yes, that’s right - encourage. Because without fraud, lawyers and judges wouldn’t have jobs. The legal system is designed to serve not the good guys but the lawyers, and the lawyers are best served by unjustly protecting bad actors. Nobody who hasn’t actually gone through this sort of situation has the foggiest about this. Dave is saying to let it go - and he’s right. Because the system doesn’t care. Just because you’re right, you sue, pay lawyers a bundle, and waste years of time and aggravation doesn’t remotely imply that anything remotely resembling legal or moral justice will result.
How do you run a business and let a client get $1 million dollars in debt to you? Why were they not cut off long ago? I miss my payment for the electric company by a few days and they are already threatening to turn off my service.
Not paying enough to the accounting staff to get enough staffed good people and lack of internal controls.
@@frank8348doubt that
The fact the hes giving this thought shows that he ia a smart person. Sometimes the retaliation is worse than the original problem...
Nothing worse as a business owner than being in that situation. The right financial/business decision can be so far away from what your guts tell you that you want to do.
Can bet my right arm that the client is Jewish
The client very likely also does not pay other parties money it would NOT undermine the reputation of the callers company. Even savvy biz owners can have a blind spot and an irrational fear of going after (allegedly) big guys in their niche. As he says: they are very loud. If they do that because they want to cover over being almost broke, it will come out. If they are shady people - they already have done that in the past and their is whisper about it.
If they are just shady people, they can be made to pay (or will give in once the realize they are being sued for real. Of course they will never do biz, that is fine, let them harm your competitors (if they are not smart enough to stay away or to ask for upfron payment).
If they are almost broke he might get some money out of them (while other have the same hesistations to go after the biggest bully on the ground - and miss out completely).
I would go and sue them.
Dave saying to let it go, is wrong. This guy want to let it go, is also wrong.
I would not want to be in business with someone that is willing to let 1 million dollars go. Because what else are they not doing?
And he's a lawyer? I wouldn't let him be my lawyer.
I know Dave well enough to know he'd never just let it go. It's about principle.
@@abacab87 Dave doesn't agree with you, accorsding to the video.
It’s so funny reading this comments that prove how no one in them is remotely aware of how much the legal system will protect the bad actors and not make the victims whole in fraud situations. Dave, otoh, has been around the block. He knows what’s up in this sort of situation. Suing people for fraud doesn’t work out how you think it does based on what you see in the movies. In real life, the bad guys often if not usually win when it comes to situations like these. These guys made $1m by knowing that it’s unlikely that their victim would be able to successfully sue them for fraud in this situation.
If they're so loud, and such a bad actor, do they really have the sway in the industry that you think they do? ...Or does everyone else know and feel the same way you do?
Bandwidth consumption is the worst problem. He could hire someone to only work on this. Tax write off is essential no matter the outcome!
You could always place a lien on the business.
Why do that when they can sue?
Wow, I feel pleasantly surprised to get help in some personal matters by applying your business principle of not wasting my energy on old wrongs and use that energy instead on building good new relationships
I needed this 🎉
Dave is exactly right, again. I'm very impressed. His advice is golden.
I had a guy in Mesa AZ commit absolute fraud, theft and bankruptcy on my, Forgive? not there, but it isn't eating at me. Sometimes in life you end up meeting someone who makes everything bad for everyone. I was able to legally recover part of the money by learning a lot about state and federal law and taking advantage of AZ state law, but Ironically I could have committed a very small amount of perjury, totally gotten away with it and gotten all of my money back under the bankruptcy laws. Of COURSE, I am not going to commit perjury even to achieve an obviously correct outcome for any amount of money, and especially not for several thousand dollars.
My guess is this particular individual will likely eventually be murdered. I would name names, but doing so during a long drawn out business bankruptcy comes with complications (I believe).
I would love to know the space and people the man is talking about. I can think of certain groups that are just there to take advantage of people...pretty sad.
I feel Dave on this one. I have a client that owes me lots of money, and I've spent more time and brain power trying to get him to pay than acquiring new and better deals. Yes, chase guys down on principle, but sometimes, be practical, take the L and move on. 1mil is mad though
Why not reach out to industry leaders and ask them if they we’re screwed too
Dave runs in the morning? (I say that with a teasing spirit, love Dave)
YES YOU SHOULD
I can think of one instance where something like this is happening 😂
Nope, no way I’d let this go . Ludicrous to not get money owed .
A ten-foot pole? The tallest Pole I know of was about 7'4"!
Agree that is sounds like he has already decided not to pursue the money.
And not having the guts to do that. He tells himself the story it would be too much reputational damage. So it becomes a wise biz decision instead of caving and avoiding conflict. Also with the partner who is better aquainted with them. and likely is responsible for this client that costs them so much.
I’d want my money!!
Set a debt collector on their asses & sue for loss of business/income .
So much vocal fryyyyyyy!!!
This caller sounds like a complete beta. "Yes sir I'll have another!" 😂 That's the vibe I'm getting
I would refuse to work on any of their needs anymore. I would tell the partner that it's his problem to deal with that client and their needs from that point forward, and I would be filing a judgement for the billable hours I put in. But again, is it worth the hassle? Do you want to fight on principle just to prove a point if they don't have the resources to pay it back?
Didn’t he say there was a business sale involved with it too?
I don't see how you can forgive a huge debt in a field you expect to continue doing business in and expect any other clients to take your bills seriously? At some point you will have to enforce payment or instead of one client in arrears you'll have 15 of them. Might as well pull your socks up and enforce this before everyone else realizes they don't have to pay you because you don't have a spine.
Pyrrhic victory is what this would be.
He should ask Paul Heyman BRUTHURR! A ppv company pulled the same noise on him.
Yes. Sue them.
I could not disagree more. I worked for a large Swiss company. The wrangling is done in the initial negotiations. After that, it’s no holds barred. For companies in distress and honest about it? It’s forgiven… for everyone else, it’s war.
Doesn’t your reputation suffer when you don’t collect? Need to get into a room and work out a settlement.
Weak lawyer, allowing a client to get a million dollars behind. I would never. Once the retainer was depleted the work would stop until they replenished. How do they keep doing work when month after month they send invoices that don't get paid? And then you're a lawyer and you don't have the balls to sue them? What kind of weak ass lawyer are you that you can't even stand up for yourself. How are you going to stand up for your clients?
I think the client was a holy cow of his partner, who likely is responsible that they are behind so much with the payments. Caller now says it would be too much reputational damage (not for them that's for sure). this is b.s.: he glorifies the fear he has to confront his partner and to confront the client. He tries to redefine caving in and not addressing major problems (how was it possible that the client was behind so much)
Into: being wise and knowing when you have to cut your losses. And how this allegedly avoids "reputational" damage.
a) they did such a terrible job that the client wants a big rebate (that can be discussed)
b) the client is shady (or dangerous). If they are only bullies they can and eventually will pay. And there are arrogant biz owners out there that try the trick, until they meet someone that drags them to court and calls their bluff. No reputational damage at all - well there is but for the client that will have to pay or agree to a settlment
c) client is almost broke and covers it up by playing the loudest bully on the school yard. That will come out and they will owe other people as well. there is already whisper.
d) client is dangerous (mobster, ...) Well then you have to write off the money. But he says they are big in the niche, so that does not sound like organized crime
If he allows his partner to bring in such clients and not vet them better - what is the partnership worth ? the 1 million is likely a lot of costs (by the court), and the rest is unpaid work time (of them, the staff).
Low key diss calling him a wuss 😂
He's clearly a panty waist.
why does it matter if you do the client reputational harm unless they are bringing you > $1 million worth of additional sales? Just do the math, if the client is bringing you $10 million of sales and not paying you $1 million then just forget about it and hope they pay. If they are not bringing you sales then sell the debt to a collection agency and take pennies on the dollar and let them deal with hit to their credit score
He can't harm their reputation - they did that themselves.
Have you talked to yiur employees,, how many of them would and could use a Christmas bonus or soem help with thay million dollars. If you dont need it fine, but your emoyees could use it and if thay is me, i would 100% go after them
They didn't pay get louder. Sue them.
They are criminals!!!!!!!!!!!
Childhood friends and thieves, sad ;(((
6:40 - 7:40 8:40 - 9:45 don’t settle
“That’s why people settle… when they shouldn’t be settling as a matter of principle, they settle to get it out of their life, sometimes it’s because their wusses ”
There's more to the story ... who have 1mill to spare and walks away because scared to sue client?
Sell the debt to a debt collector.
😂😅
I personally love Dave, BUT I feel like younger people automatically stop listening when I mention his name sometimes... I've tried bridging the gap but I'm so new to youtube and it's hard gaining momentum... I just wish we had younger people becoming financially and politically responsible and informed..
collection agency.
The knew what this company was like yet decided to do business with them regardless?
Caller is a lightweight and this causes him to be targeted - he's a mark
Number 1 Dave at least for what I listened to was way too restrained with this guy. Listening to this sniffley nasal guy trying to justify giving the "bad actors"all this free work is disgusting. I love and trust Dave but this guy just irked me so bad I had to stop the video!!!!
Further more trying to get Dave to buy in a "bless" this utter stupidly is just insane. This is one of the type of issues like "honey I let your brother get into us for 250K and he can't pay". This man has let a shyster get into him for 1M because of "appearance" and 'reputation". It would be like "well we are such an up class neighborhood I cannot shoot or call the police to this burglar and put him down, or in the hospital under Police guard or in jail because it will hurt our reputation."
There is something wrong with people letting other narcissistic people dominate them. Friendship covers the unexpected or unintended. This "customer" is more like "shoplifter" has extracted nearly 1M of value of services and now essentially will not pay. Who were they (the shoplifter customer) working for? Who was their end user reaping benefits of them using this guy as a sub or whatever function the victim her was put in.
In business you have a moral and fiscal responsibility to be true to your self and your immediate stakeholders. Employees expect your loyalty in being a responsible owner manager and collecting the money owed so you can continue in business. This business victimized here is not a click, country club or exclusive member organization. It is a business not a charity!
The partner being childhood friends with the moocher? The moocher will not pay his bills and will make us (party owed) loose 1/4 of our total income in the business unit it effects for it?
This is insane! This guy wants to walk away for 1M in work done, out the door. Employees were paid in advance of collecting these monies to do the work that created the billing? The moocher (guy that owes 1M) and SHOULD be exposed. Why the guy owed the money by the moocher allowed it to go this far is beyond me.
Dollars and cents do not have friends. Dollars and cents do not submit to blackmailing moocher bullies!
This is one video regardless to outcome or Dave' advice (which I am sure was spot on) left me sick to my stomach how woke and stupid people can be to worry about the outcome of enforcing payment so they can pay their bills ( meaning the person owed gets their money) and stay in business.
It was the sale of a business if you listened closely. My guess is that that the other company is bankrupt and lies about everything until it was too late. I bet the guy wants to just call the police
The client most likely was the holy cow of his partner, and if that had not been the case they would never have been allowed to be that much behind.
The caller would need to have a discussion with his partner - and tries to avoid that. He would rather redefine Caving in as being a wise biz decision (under the rationale of: it would hurt our reputation). It is of course possible the the client is dissatisfied and they did a poor job, then it is time to negotiate. But if the client is almost broke and tries to cover that with a lot of swagger nand "being loud" they will not pay others and there will be whispers in the scene already.
And if they are just bullies that got away with it (and the service was O.K. and they would have the money) - then there is also talk. Then they have done that before.
Either way it will NOT hurt their reputation. (other than maybe that they were utterly stupid. Then they will have to make sure to ward off others that might try the same stunt with them).
YOU NEED TO GROW A PAIR, OR GO OUT OF BUSINESS.
Slap a lein on the business, they're closed until they pay the debt. Wait until your other clients find out you're willing to work for FREE.
Now companies now know you're a push over with no conviction.
Ask for 750k... settle at 500k or so. Write off his friend in your firm as well
Rich people will let other rich people rob them. You let a poor person rob a rich man and they want to throw them under the jail.
Buy them out lol
Walk. God will deal with them in due time.
How the rich stay rich… good men stand by and do nothing…. I hope he sued.
What is this guy even saying?
Dave Ramsey needs to retire.
"My childhood friend owes my 1 mill, should I sue?"
So, they're related to Trump 🧐🙄🤔
...TDS is real...
Ramsy got his general shirt on. don't let it go sue those mother fers.. send them a lawyer letter that tells them to pay up or u will be sued in court
This is absolutely Donald Trump or His boy Rudy .
Is Trump his client??
...TDS is real...
That would make sense, and he does not dare to sue because he might become president again. Or at least it might piss off some Republicans MAGA bigshots.
Caller is 🌈🌈🌈
This was how Trump did business, "if you don't like it, sue me, because I can outlast you."
wrong.. u have proof u Karen
There are 4,000 cases on file that went to court before he became president, but a lot never went to court because he screwed over small businesses that couldn't fight back@@chrissmith-yg5xn
Is the client the Trump family by any chance?
He never gave a reason why this company did not pay him . Was it just a situation where they said we won't pay you . Donald Trump skillfully executed this technique on multiple levels from a landscaper to maybe some banking institutions .
I am surprised this type of action when done a standard way of doing business would not survive as nobody would do business with him but I guess there is always a sucker
In my business if someone came up to me and said If you do this first job for a discount I will give your more work . I would say I charge what I charge and I would walk away . I had only a couple people not pay me when I was a bit more naive
Get off the democrat cult wagon.
When Dave said “They lie, they make up stuff, and they don’t pay their bills,” I immediately thought of Donald Trump, lol.
That’s stupid
Nah - this is Denver - deadbeat clients will be DEMOCRATS.
SCAMER -camilaso80 ⬇
make surw the partner is not secretly with them also.. cant trust people