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What are my options as a contractor in Indiana if customer doesn't pay and files a fraud claim against me?

IndianaMechanics Lien
Anonymous General Contractor

I did a job on the customer property. I asked to clarify multiple times if painting would be needed on the patching work when it was done. He always said no. So I completed the job, and he refused to pay claiming fraud stolen funds and incomplete work. His family have taken to the internet to slander and smear my company as a result. What can I do to get paid for the job and is there anything I can do aboutvtgd smear campaign?

1 reply

Levelset Admin at Levelset
| 1,008 reviews
May 1, 2020
When a customer refuses to pay what's owed, recovery tools will be available - like a Notice of Intent to Lien, demand letters, mechanics liens, legal claims, etc. But, before going further on that - if a customer has filed a legal claim against you for fraud, you should likely hire an attorney to help combat the fraud claim. Further, posting lies about a person or business online is libel. So, demanding that the customer removes the false information or else a libel claim will be filed could be effective there. And, obviously, pursuing a case could help things, too.

Forcing a customer to pay what they owe in Indiana

There are a number of different options, including the ones above, which could be good for forcing payment. For one, threatening to take legal action - with a payment demand letter - can be useful. A demand letter typically includes specific legal threats and puts a deadline on when payment must be made. Alternatively, threatening to file a mechanics lien by sending a Notice of Intent to Lien can be extremely effective as well. Mechanics lien claims are the most powerful tool available for forcing construction payments. So, actually going forward and filing a lien claim could lead to payment, too. You can learn more about Indiana's lien rights and requirements here: (1) Indiana Mechanics Lien Guide and FAQs; and (2) How to File a Mechanics Lien in Indiana – Step by Step Walkthrough. Finally, legal claims like breach of contract could be available in addition to the libel action discussed above. And, consulting an Indiana construction attorney would be valuable for determining what options make the most sense under your circumstances.
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