JohnD24:
You ask a tough question....the method that I used is as follows:
Our Association (NJECA) has a collection agency, and if necessary a lawyer that 'assist' the electrical contractor members. The agency works on a commision, of what they collect, and need be the attorney works for a percentage of what he collects also. (NO out of pocket costs)
The best solution is to steer clear of the deadbeats. Other EC's (your competitors) MAY spread the word of the deadbeats, if you talk to them.
Luckily, I have a very good customer base now, and don't have these problems anymore. The bad apples were weeded out, I took my lumps, got what I could. Recently got a check from a bad debt from 8 yrs ago. Had a lein on the guys house, he wanted to re-finance, the lein showed up in the title search, I got $$$, and yes, the agency got there cut....they did all the legwork, paperwork, etc.
Be careful & good luck
John
