With all the discussion of sinkholes in the news, I started thinking about a different kind of sinkhole: the financial sinkhole. Perhaps you own a small company and have problems collecting on your receivables or you have made loans that you can’t get repaid. If your customers don’t pay, it can become like a financial sinkhole where you are owed more and more money until you can’t pay your own bills.
Often we try to see the best in people and are open to giving people second chances and then maybe third and fourth chances too, but at some point it becomes necessary to make sure that invoices are accounted for and payments are made. Otherwise, you or your business risk spiraling into a financial sinkhole. Moreover, you may be at risk for never being able to collect the money that is owed to you if you are beyond the statute of limitations period. The statute of limitations is just as its name suggests: a limited period of time in which the law dictates that you have before your time is up to take action. This means that if someone owes you money and doesn’t pay you before the statute of limitations period expires, you may be unable to ever collect that money even if it is owed to you.
If an individual or business owes you or your business money and you have been unsuccessful in getting them to pay you back, then it may be time to contact an attorney who can assist you and advise you on the best way to proceed.
Author: Davi Peters, Esq.