Despite the continued rise of foreclosure filings, Zucker Goldberg & Ackerman, L.L.P. a prominent foreclosure firm in New Jersey, announced they will be filing for bankruptcy in the coming months. The firm has stated that their current and future profits are not enough to keep the doors open after accruing more than $20 million in debt. However, the financial struggle is not a result of lack of business, but a lack of payment received according the Zucker Goldberg. Nearly 300 employees stand to lose their jobs after the company’s projected shutter date of Aug. 24th. The law requires that businesses of this size provide a 60 day notice before closing shop so Aug. 24th is the earliest date available to them. Until then, they are still paying employees. A lawyer representing Zucker Goldberg stated that a combination of new and old regulations has made it impossible for the firm to profit.
How Can You Deal with Non-Paying Clients?
Here’s a few things you can do in your own business to minimize issues with non-paying clients.
- Standardize your billing policies. Create a detailed contract for every job you do that includes a description of work to be done, payment information, and a payment schedule.
- Take deposits. It is common practice for businesses to take a deposit of up to 50 percent before they begin a job and either set up a payment plan for the remainder or accept the balance all at once upon completion of the job.
- Be pro-active. Send bills to clients on time and do not let non-payment slide. As soon as a client is behind on the payment, send them a notice including the owed amount and a date that you will take legal action if they do not comply.
- Be prepared to take legal action. Have a business lawyer you can call when you need to take legal action against a non-paying client.
Non-paying clients can kill any business, large or small. The key is to be clear and assertive. A business litigation attorney can quickly help you get what is owed to you.
Garland & Mason, L.L.C. – New Jersey Attorneys