That is a tough position to be in, and we have all been there (or near). I have considered suing a couple of times, and a couple of factors I considered were: 1) does the company have any assets, and 2) where is the company located?
First, a judgment doesn't do any good if the company has no ability to pay. If it has no assets, if could be a real struggle to get paid. Trying to garnish bank accounts can be difficult if you don't know where they bank. In this business, most of our client are service businesses with no assets. They could close up and open a new business entity tomorrow and chasing that would be cost prohibitive.
Second, if they are out of state you might have to have two lawyers. One at home to sue them for the judgment, then one to collect on it in their state. Obviously that increases the cost of recovery.
You are owed a significant amount. It is worth considering. You should be able to get a judgment fairly inexpensively because they probably aren't going to show up in Court and fight it - there is not much legal work to a default judgment. And if they do show up, it means they care enough about their business to work something out (which could also be good). So, in your case, the real question is would a judgment be collectible?
Best of luck,
Robert A. Franco
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