Can I sue homeowner for forcing personal bankruptcy due to non-payment?
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Can I sue homeowner for forcing personal bankruptcy due to non-payment?
I am a startup small business. I did extensive work on a home and when provided
final invoice for payment, the homeowner refused to pay due to a
Asked on October 14, 2018 under Business Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
No, you cannot sue her for "destroying your credit rating" or "forcing personal bankruptcy" because she didn't do those things. She has no control over your business or personal finances; she did not determine how much savings you had, how many debts or how large they were, your business's cash flow, whether you had other sources of income, etc. There are many small businesses or people who would not be forced into bankruptcy by a failure to receive a $24k payment. There are many, many factors outside this one customer's control affecting the financial, etc. impact on you, but the law does not hold people liable for consequences largely outside their control.
You can, of course, sue her for all amounts due and unpaid under the contract. You can likely also sue her for money outside the contract but which she owes you to do change orders or additional work she requested, so long as you can sufficiently prove that she requested or approved that work. So your recourse is to sue for the money she owes you for what you did--you just can't get additional amounts for bankruptcy or your credit rating.
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