You completed your end of the deal but when it came time to pay your customer did not. After repeated invoicing, the customer finally offers to settle the balance due in writing but does not pay. Now that you are enforcing your right to collect and pursuing “legal” options, the debtor has changed their tune. Your non-paying client is now defending the debt collection case you brought against them. The debtor has also included sham counterclaims claiming the services or goods were defective.
How is this possible given their previous offer to settle? Isn’t the mere fact that they offered to pay proof they owe the money? It depends.
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Sometimes New York courts require creditors to post a bond to maintain their debt collection case in the state’s courts. Could you be required to post a bond to maintain your New York debt collection case?
Companies incorporated in New York, as well as ones incorporated in another state but authorized in New York, generally will not be required to post a bond.
But companies “doing business” in New York that are not yet registered in the state may be required to post a bond to maintain their debt collection case.
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Unhappy with the decision rendered by the arbitrator(s) in your New York debt collection case? If so, you may have another chance to win your case by asking for a trial de novo.
Parties wishing to get another bite at the apple in the “Big Apple” can, without specifying a reason, ask for a do-over. The party that files for a trial, when allowed to do so, can make the arbitrator’s decision disappear and start anew “de novo.”
Many of the New York courts require arbitration for cases below a specific dollar amount. Retired judges or others appointed by the court act as arbitrators. The arbitrators listen to testimony and apply the same law that a judge would.
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In New York, civil action for unpaid wages is considered a debt collection claim. Unpaid wages are considered a “breach of contract,” as the employee fulfilled their terms of employment but the employer breached the “contract” by failing to pay the employee as agreed. You do not need to have a written employment contract to be sued for breach of contract.
If sued in New York, withholding wages from your employees can cost you more than just their unpaid salary. An employee can file a civil action to collect unpaid wages. As part of the lawsuit, the begrudged employee can ask the court to award additional damages to punish you for wrongdoing.
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