Six Non-Payment Patterns We Solve
Fabricator shops and job-shop machine shops stretch AR until you threaten to cut off cylinders and consumables.
Customer changes suppliers, cylinders never come back, replacement charges billed and disputed.
Customer claims they "didn't know" about demurrage rates despite signed credit application.
Fabricator shuts down; successor entity refuses to honor open account.
Customer claims contamination or bad fills; refuses to pay pending "investigation" that never completes.
Construction customer finishes the job, demobilizes, ignores the final gas-and-consumables invoice.
California Legal Framework
| Authority | Application |
|---|---|
| Cal. Com. Code §2709 | Action for the price — goods delivered and accepted, customer failed to pay. |
| §2706 / §2710 | Resale remedies for rejected or undelivered goods; incidental damages on distressed accounts. |
| Civ. Code §§8400–8494 | Mechanic's lien — gas and welding supplies used on a specific California project; §8200 preliminary notice controls. |
| §§8500–8560 | Stop payment notices on public works projects. |
| §9550 | Claim against payment bond (Miller Act analog for state projects). |
| Com. Code §9502 / UCC-1 | Perfection on customer inventory and equipment via UCC-1 against credit-application collateral grant. |
| CCP §337 / §337a | 4-year SOL — written credit application and open book account. |
| Civ. Code §3287 / §3289 | Prejudgment interest — 7%/10% from liquidated date. |
| §1717 | Attorney's fees — bilateral application of credit-application fee clause. |
| §3439 (UVTA) | Fraudulent transfer — for asset-stripped closures. |
Live Savings Calculator
Fee Comparison
| Claim Size | LegalCollects (15%) | Traditional (33%) | Your Savings |
|---|---|---|---|
| $10,000 | $1,500 | $3,300 | $1,800 |
| $25,000 | $3,750 | $8,250 | $4,500 |
| $50,000 | $7,500 | $16,500 | $9,000 |
| $100,000 | $15,000 | $33,000 | $18,000 |
| $250,000 | $37,500 | $82,500 | $45,000 |
Case Studies (Anonymized)
Intake Checklist
- Signed credit application with guaranty, fee clause, UCC-1 consent.
- Invoices, delivery tickets, cylinder-ledger statements.
- Demurrage and unreturned-cylinder charge schedule.
- Preliminary notice (§8200) for construction-project deliveries.
- Payment history with running ledger.
- Email chain or call log evidencing any dispute.
Our 30-Day Sequence Applied
- Day 0 demand letter with full aging, cylinder ledger, and itemized damages.
- Day 3 AI first-contact call — AP usually answers; we confirm dispute status.
- Day 5 payment-plan offer (3/6/12 months via Stripe).
- Day 10 decision point — if no response, escalate.
- Day 14 attorney review + draft complaint (action on price, open book account, account stated, UCC-1 enforcement, fee recovery).
- Day 16 pre-filing email with draft complaint attached.
- Day 25 complaint filed and served.
FAQ
Do you take claims under $5,000?
Case-by-case. Small-claims court (under $12,500) is a viable path for businesses when documentation is clean; our involvement is limited in that track but we can still manage demand and filing preparation.
What if the debtor is in Arizona or Nevada?
We accept out-of-state debtor matters where venue is proper in California under the credit-application terms. We can also coordinate with out-of-state counsel.
How are your fees when the debtor files bankruptcy mid-sequence?
Bankruptcy pauses sequencing. We file proof of claim (no charge if already engaged) and evaluate §547 preference and §503(b)(9) priority if applicable. Our 15% applies to actual recoveries.
Can you handle multi-jurisdiction lien filings?
Yes — California liens directly; out-of-state filings through licensed affiliate counsel with coordinated billing.
Do you advance court costs?
For viable matters above $15,000, we typically advance filing and service fees, recoverable from the debtor on judgment.