How to Collect Unpaid Invoices Through Legal Action in Rhode Island
Every business — from freelancers to construction companies — depends on reliable payments to stay afloat. But when a client or customer refuses to pay, it puts your finances and operations at risk. If reminder emails and phone calls haven’t worked, it may be time to explore legal action to collect unpaid invoices.
In this blog, we break down your rights as a business owner, how invoice collection works under Rhode Island law, and when to involve a debt collection attorney to recover what you’re owed.
Step 1: Review the Original Agreement
Start by reviewing the written or verbal contract that outlines:
Payment terms and deadlines
Late fees or penalties
Deliverables or milestones
Dispute resolution clauses
In Rhode Island, even a verbal agreement may be enforceable if you can demonstrate mutual understanding and performance. A clear contract strengthens your position if legal action becomes necessary.
Step 2: Attempt Collection in Good Faith
Before going to court, document your reasonable efforts to collect the debt. This may include:
Invoices and payment reminders
Emails or letters requesting payment
Notes from phone conversations
Proof of services rendered or goods delivered
Showing that you acted in good faith can support your claim and potentially entitle you to interest, attorney’s fees, or collection costs.
Step 3: Send a Formal Demand Letter
If polite reminders go ignored, your next move is a formal demand letter, which:
Clearly states the amount owed
Includes a deadline for payment
Warns of potential legal action
Can be sent by your attorney for added weight
Often, a letter from a Rhode Island business attorney is enough to prompt payment without court involvement.
Step 4: Consider Filing a Civil Lawsuit
If the debtor still doesn’t respond, you may need to file a lawsuit in Rhode Island civil court. This may involve:
Small Claims Court (for amounts under $5,000)
District or Superior Court (for larger amounts or complex claims)
To succeed in court, you’ll need to show:
A valid agreement or invoice
That you provided the promised services or goods
That the other party failed to pay as agreed
A civil litigation attorney can handle everything from filing the complaint to representing you in court.
Step 5: Enforce the Judgment
Winning in court is only part of the process — you still need to enforce the judgment if the debtor refuses to pay voluntarily. Enforcement options may include:
Bank account garnishment
Wage garnishment
Liens on property or business assets
Court orders requiring payment
At Almagno Law, we help clients not only obtain judgments but also collect on them through proper legal channels.
Tips to Avoid Future Unpaid Invoices
Legal action is sometimes unavoidable — but there are steps you can take to minimize risk:
Use clear written contracts with payment terms
Require deposits or milestone payments
Charge late fees or interest for overdue payments
Stop work immediately if payment terms are violated
Run credit or background checks on high-risk clients
We offer business law guidance to help you draft enforceable contracts that protect your cash flow.
Can You Charge Interest or Legal Fees?
Yes — if it’s included in your contract. Many Rhode Island businesses add clauses for:
Late payment interest (often 1.5% per month)
Collection costs
Attorney’s fees if legal action is required
Without such provisions, you may be limited to recovering only the unpaid amount. This is another reason to have contracts reviewed by an experienced attorney.
When to Contact a Debt Collection Attorney
It’s time to speak with a lawyer if:
The amount owed is significant
You’ve exhausted informal collection efforts
The client is avoiding communication
You need help enforcing a judgment
You want to avoid legal missteps or aggressive third-party collectors
At Almagno Law, we help Rhode Island businesses resolve unpaid invoice disputes quickly and professionally. View our case results and testimonials to see how we’ve helped other local clients recover what they’re owed.
Get Help With Invoice Collection in Rhode Island
Unpaid invoices don’t have to become sunk costs. If your business is owed money, let us help you protect your rights and pursue the payment you deserve.
Contact Almagno Law today for a consultation. You can also browse our FAQs or visit our legal blog for more insights on business law, contracts, and litigation.
Legal Disclaimer
This blog and the information contained on this website are for informational purposes only and do not constitute legal advice. Reading this blog does not create an attorney-client relationship with Almagno Law or any of its attorneys. If you need legal advice, please contact an attorney licensed to practice in your jurisdiction.
