Hello- I have a Chiropractor client that I've done billing for about 6 months. Things have been going smoothly until about 6 weeks ago when his monthly check stopped arriving. I called him and he apologized, and said he could not pay because his "numbers were down, and he could not afford it." He has agreed to take over his own billing for now, and said he would try to get the account paid in the next 60 days. He is now 45 days delinquent. Our contract states:Westside will close its books for billing purposes on the last day of eachmonth, and will bill Client for it's services on the 5th business day of each month for the previous months billing. The Client will pay Westside for it's services upon receipt of Westside’s invoice. If Client fails to submit payment within 30 business days of receipt of invoice, Client will be responsible for paying Westside, in addition to the principal amount billed, a 1% per month late charge for each month or any portion thereof payment of the billing is late. My question is: How long should I carry this debt
.I charge a flat monthly fee for my billing services, not a percentage. The 1% only applies to the late fee. Sorry for the confusion.
I called him and he apologized, and said he could not pay because his "numbers were down, and he could not afford it." He has agreed to take over his own billing for now, and said he would try to get the account paid in the next 60 days. He is now 45 days delinquent. Our contract states:Westside will close its books for billing purposes on the last day of eachmonth, and will bill Client for it's services on the 5th business day of each month for the previous months billing. The Client will pay Westside for it's services upon receipt of Westside’s invoice. If Client fails to submit payment within 30 business days of receipt of invoice, Client will be responsible for paying Westside, in addition to the principal amount billed, a 1% per month late charge for each month or any portion thereof payment of the billing is late. My question is: How long should I carry this debt
The 60 day "promise" was just a suggestion (made by me). My contract states either party can terminate the contract provided 14 days written notice ( via e mail or snail mail) is given. Yes, I can take this man to small claims court, but I'm hesitant to take legal action at this point for 3 reasons:1. He does not have the money, and no amount of legal paper shuffling will get me paid.2. He is in California, and I am in Washington State. This will no doubt complicate the legal process. Taking several (if not many) hours out of my work day to chase after a $300.00 fee might not be in my best interest.3. He's been a good client in the past, it's possible we may be able to restructure the contract, which includes a lower workload for me and lower fee for him. He has stayed in contact with me, and has been somewhat receptive to this idea.I was just looking for ideas in case he did not pay me at all.
Well your asking two different questions then.. "how long can you continue this debt legally" and "how long should I carry this debt". the answer is in your contract, it just might be that your trying to give the provider the benefit of the doubt. If your contract stated that LEGAL and written notice to terminate said contract existed.your client is already in breach. At this point I think you are wanting to end things amicably but within legal rights.. correct? Again, I have to say you already have breach.. how you proceed now becomes how you WANT to proceed. Remember also that it could set precedence for future clients.