How Do You Collect Money Owed From Someone Who Won't Pay?

To collect money from someone who owes you a debt, follow a few forceful steps that include offering a payment plan, reminding the person of the debt in person, sending them a letter, having a lawyer write them a letter and taking them to court, according to Wealth Pilgrim. These steps should be motivated by the understanding that the person has crossed a boundary by breaking a commitment to you.

Offering a debt payment plan may be the quickest way to get the person to start paying, says Wealth Pilgrim. If this doesn't work, a firm verbal reminder that includes all the details of the agreement and the time the payment was due can lead to a few outcomes. These may include a quick payment or a re-commitment to pay you at some later date, for which you should request a signed letter.

If the person ignores the verbal request, it should be followed by a more formal written request from you, providing a strict deadline when all the money is due, notes Wealth Pilgrim. If the debt is large enough, hire a lawyer to write a letter that includes the same details as the previous letter, again demanding payment at a specific date. As a last sort, file a claim in small claims court.