Is a stop payment on the check received from customer handled in the same manner by using the demand letter? Customer lives in Nebraska.
1 reply
May 8, 2020
If your customer has issued a stop payment on the check they've paid you with, you'll generally be entitled to pursue some recovery options to make sure you get paid. As you mentioned above, sending a payment demand letter is certainly one option for forcing payment. When a demand letter is sent, that lets the customer know you're serious about getting paid and willing to do what's necessary to make sure that happens. So, threatening to pursue claims like breach of contract, a claim under Nebraska's prompt payment laws, etc. - or even a claim like fraud - could be effective.
Further, threatening to file a mechanics lien could force a customer's hand, too. Sending a Notice of Intent to Lien to the customer, property owner, and to anyne else who's working on the job can put pressure on the customer to pay what's owed. Nobody wants to deal with a mechanics lien filing, so the threat of a lien claim can't be taken lightly.
If necessary, actually pursuing a mechanics lien can get the job done too. More on that here: (1) How to File a Mechanics Lien in Nebraska – Step by Step Walkthrough; and (2) Nebraska Mechanics Lien Guide and FAQs. Actually pursuing legal claims could be effective too - so consulting a Nebraska construction attorney could be useful, as well. And, finally, sending the debt to collections is yet another recovery option.