If you are a business owner, service provider, or contractor and a client has failed to pay back money owed, you’re probably asking: what are my options? Debt recovery can be time-consuming, frustrating, and financially disruptive. Even a single delinquent account can harm your cash flow, hinder your operations, and create unnecessary stress. Fortunately, Massachusetts law provides a variety of legal tools and procedures that can help you recover the debt you are owed. From crafting the right demand letter to working with a seasoned debt collection lawyer in Massachusetts, here are nine practical and legally sound steps you can take when a client refuses to pay their debt.
1. Document Everything From the Start
Before initiating any kind of debt collection process, the first thing you should do is gather and organize all documents related to the debt. This includes:
- Signed contracts or service agreements
- Invoices
- Purchase orders
- Delivery confirmations
- Payment receipts or proof of prior payments
- Email correspondence
- Text messages or any communication acknowledging the debt
These records can become critical evidence should the situation escalate to legal proceedings. In many cases, simply presenting a comprehensive paper trail can be enough to persuade the client to pay. Courts in Massachusetts place high value on documented evidence, particularly when it reflects a clear, mutual understanding of payment terms (source).
2. Send a Professional Demand Letter
If the client remains unresponsive or unwilling to pay, your next move should be a formal demand letter. A demand letter is often the first official attempt to recover a debt. It demonstrates your seriousness and gives the client a final opportunity to resolve the issue without further escalation.
A well-drafted demand letter should include:
- A clear statement of the amount owed
- Reference to the agreement or invoice
- Dates the debt was due
- A final deadline for payment (typically 10–30 days)
- Consequences of continued non-payment (e.g., interest charges, legal action)
Importantly, this letter should be professional and free of emotional or aggressive language. Always retain a copy of the letter and send it via certified mail with return receipt requested to create a documented trail. A lawyer can help you draft a compelling and enforceable letter that meets all state legal requirements.
3. Avoid Harassment and Illegal Collection Practices
It can be tempting to keep calling, texting, or emailing the client—especially if they are avoiding you. But excessive or aggressive tactics could violate both federal and Massachusetts debt collection laws. Even as a creditor, you must abide by the Fair Debt Collection Practices Act (FDCPA) and relevant state statutes.
Prohibited behaviors include:
- Repeated or late-night phone calls
- Contacting a debtor at work after being told not to
- Threats of violence or legal action you do not intend to take
- Misrepresenting your identity or legal authority
- Disclosing the debt to third parties
Violations of these rules can not only harm your reputation but expose you to civil penalties and lawsuits.
4. Consider Offering a Payment Plan
Sometimes, clients fall behind on payments due to genuine financial hardship. If the client is cooperative but unable to pay the full amount immediately, consider offering a structured payment plan. This might include:
- Breaking the debt into manageable monthly payments
- Offering a short-term deferral with interest
- Discounting the total debt if paid in full within a set timeframe
Any agreement should be put in writing, signed by both parties, and include specific terms such as due dates, payment methods, and consequences for missed payments. A lawyer can help you draft an agreement that is enforceable under Massachusetts law.
By being flexible, you may salvage the business relationship and recover at least part of the money without needing to resort to court.
5. Attempt Mediation Before Litigation
Before filing a lawsuit, mediation can be a cost-effective and non-confrontational option. Mediation involves a neutral third party who helps both parties reach a voluntary agreement. This method is typically faster, less expensive, and less emotionally charged than going to court. If successful, the mediation agreement is legally binding and can prevent further conflict. Mediation is especially beneficial when the relationship with the client is ongoing or when preserving confidentiality is important.
6. Work with a Debt Collection Attorney
If your demand letter and direct communication have failed to produce results, it may be time to consult a qualified debt collection attorney. Debt collection law can be complex, and mistakes in the process could invalidate your claim or expose you to liability.
Goldberg & Oriel’s experienced debt collection lawyers in Massachusetts can:
- Review your documentation and agreements
- Draft legally compliant demand letters
- File a lawsuit if necessary
- Pursue legal remedies such as garnishment or liens
Our attorneys also provide valuable insight into whether pursuing the debt is financially worthwhile or if it’s better to negotiate a settlement.
7. Use Small Claims Court When Appropriate
If the debt is relatively small (under $7,000 in Massachusetts), you may be able to file a claim in small claims court. The process is designed to be straightforward and cost-effective, with minimal legal representation required. However, having legal guidance increases your chances of success.
To file a small claim, you will need:
- A copy of your contract or invoice
- Proof of the amount owed
- Evidence of your attempts to collect the debt
- Your demand letter and any correspondence
If you win, the court will issue a judgment. However, collecting that judgment may require further legal steps. Small claims court cannot enforce payment—you’ll need to take additional legal action, such as garnishment or levies (source).
8. Enforce Judgments Through Legal Channels
Securing a court judgment is only the beginning. Many debtors will still fail to pay even after a ruling. This is where enforcement tools come into play. A debt collection attorney can help you pursue various legal remedies, such as:
- Wage Garnishment: With court approval, a portion of the debtor’s wages can be withheld to satisfy the debt.
- Bank Levies: Courts can allow creditors to seize funds directly from the debtor’s bank account.
- Property Liens: You may place a lien on the debtor’s real estate or personal property, which must be satisfied before a sale or refinance.
Each of these options has specific legal requirements and limitations, which your attorney can help you navigate. Attempting to enforce judgments on your own can be inefficient and, in some cases, legally risky (source).
9. Know When to Cut Your Losses
As frustrating as it may be, not every debt is worth pursuing. Between court costs, legal fees, and the time commitment involved, it’s important to assess whether the potential recovery outweighs the expense and stress of ongoing legal action. A qualified attorney can provide an honest analysis of your options. In some cases, writing off the debt may be the best course of action—especially if the debtor has no assets or is already in bankruptcy proceedings. However, even in these cases, having a judgment in place may still allow you to collect in the future if the debtor’s financial situation improves.
Final Thoughts: Take Action, But Take It Smartly
Dealing with a non-paying client can be demoralizing, but you are not powerless. With careful documentation, professional communication, and legal guidance, you can maximize your chances of recovering what you are owed. Debt collection is not just about getting paid—it’s about doing so in a way that is ethical, strategic, and compliant with the law.
Contact Goldberg & Oriel for Help Collecting Unpaid Debts
At Goldberg & Oriel, our attorneys specialize in helping businesses, landlords, and service providers collect overdue payments through effective and legally sound strategies. Whether you’re at the early stages of sending a demand letter or ready to pursue a court judgment, we can help. Contact our experienced debt collection team to discuss your case and learn how we can help you recover your losses. Don’t wait until it’s too late to act—put our experience and knowledge to work for you today.