A Customer Owes Me Money and Won't Pay — What Are My Options? (Missouri)

The other thing to know up front: a judgment is only as good as the customer's ability to pay it. Before you spend money chasing this debt, ask whether the customer actually has anything to collect from. That single question — solvent or judgment-proof? — should shape every decision below.

Start with self-help — it's cheap and it often works

Before you pay anyone, try the tools already in your own pocket. These cost little and frequently shake the money loose.

• Send a clear, final demand letter. Put it in writing: the exact amount owed, the invoice and date, a firm deadline to pay, and a plain statement of what happens next if they don't. A dated, businesslike demand often gets paid simply because it signals you're serious — and it creates a paper trail you'll want later.
• Offer a payment plan or settlement. A customer who can't write one big check may gladly sign up for installments, or settle for a discounted lump sum. Getting some money on a signed, dated agreement usually beats getting nothing after a year of fighting.
• Charge what your contract allows. If your invoice or contract provides for late fees or interest on overdue balances, apply them — but only at the rate your agreement (and Missouri law) actually permits. Don't invent a number.
• Withhold what you're entitled to withhold. If you're still mid-project, you may be able to pause further work or hold back deliverables until you're paid, provided your contract allows it. Done carefully, this is powerful leverage; done wrong, it can put you in breach, so check the agreement first.

Bring in a third party to collect

If self-help stalls and you'd rather not chase the debt yourself, you can hand it off.

• Hire a collection agency. A reputable agency pursues the debt on your behalf, usually for a percentage of what it recovers. You net less, but you offload the time, the awkward phone calls, and much of the hassle.
• Sell or assign the debt. You can also sell the receivable outright to a debt buyer. You'll typically collect only a fraction of the face value, but you get paid now and walk away from the risk and effort entirely.

Either route trades dollars for convenience — a sensible swap when the amount is modest or the customer is hard to reach.

Confirm the clock hasn't run

Don't let the debt go stale before you act. Missouri sets deadlines — statutes of limitations — for suing on a debt, and once the window closes, your leverage collapses.

• A claim on a written contract generally must be brought within the period set by RSMo § 516.110.
• A claim on an oral contract or an open account generally falls under the shorter period in RSMo § 516.120.

These clocks typically run from when the payment was due. If you're anywhere near the edge, treat it as urgent and confirm the current deadline before you rely on it.

Sue — but match the court to the amount

If the customer can pay and simply won't, a lawsuit converts your invoice into an enforceable judgment. Where you file depends largely on how much you're owed, and the typical claims are breach of contract and account stated (the customer received and didn't dispute the invoice).

• Small claims court is built for smaller amounts — informal, fast, and designed so you can often appear without a lawyer.
• Associate circuit court handles mid-range disputes with somewhat more formal procedure.
• Circuit court handles the largest claims, with full civil procedure.

The dollar thresholds that separate these courts are set by statute and change over time, so confirm the current limits before you file rather than relying on a remembered figure. (For the mechanics of suing on an unpaid invoice specifically, see our companion guide on that topic.)

Win? Now you have to collect

Here's the part business owners forget: winning doesn't get you paid. A Missouri judgment is not self-executing — the court hands you a piece of paper, and collecting on it is a separate job that falls to you. Your main tools:

• Garnish wages or bank accounts. Under RSMo Chapter 525, you can garnish funds a third party holds for the debtor — a portion of wages from an employer, or money sitting in a bank account. This is often the fastest route to actual cash, though wage garnishment is capped and some funds are exempt.
• Record a judgment lien on their real estate. Under RSMo § 511.350, a circuit-court money judgment generally becomes a lien on the debtor's real property in the county where it's rendered. The lien fixes your place in line and follows the property, so the debtor usually can't cleanly sell or refinance without paying you.
• Levy and execute on property. Under RSMo Chapter 513, you can have the sheriff seize and sell non-exempt personal property — vehicles, equipment, inventory — with the proceeds applied to your judgment.
• Run a debtor's examination. You can compel the debtor to disclose assets under oath, telling you where to point garnishment, liens, and levies.
• Add post-judgment interest. Your judgment accrues statutory interest until it's paid, so the longer the debtor stalls, the more they owe.

For the full step-by-step on each, see our pillar guide on collecting a judgment in Missouri.

The reality check: is this customer collectible?

This question belongs before you spend on litigation. A judgment against a customer with no assets, no income, and nothing to garnish is an expensive piece of paper — that customer is effectively judgment-proof. Remember too that Missouri shields certain property and a portion of wages through exemptions, so not every dollar you identify is collectible.

So size up the customer first: Are they still in business? Do they own real estate or have a steady employer? Are there bank accounts to reach? If the answers point to a solvent customer, climbing the ladder makes sense. If they're broke, a payment plan, a discounted settlement, or selling the debt may net you far more than a judgment you can never enforce.

Frequently Asked Questions