What Can a Creditor Actually Do If Someone Doesn’t Pay?

Unpaid debts are more than just frustrating—they can create serious financial strain. Fortunately, Louisiana law gives creditors multiple tools to pursue repayment. But knowing what you can do—and how to do it legally—is key to turning a debt into actual dollars recovered.

Here’s a step-by-step breakdown of what creditors can do when someone refuses to pay.

Step 1: Demand Payment

Before heading to court, it’s wise to start with a formal demand letter. This letter should:

• Clearly state the amount owed

• Reference the underlying agreement (invoice, contract, promissory note, etc.)

• Set a deadline for payment

• Warn of legal action if the issue is not resolved

Demand letters sent by an attorney often get faster results than informal outreach.

Step 2: File a Lawsuit

If the debtor fails to pay after being notified, you can file a civil lawsuit to recover the money owed. In Louisiana, this typically involves:

• Filing in the proper parish court

• Presenting evidence (contracts, payment history, etc.)

• Attending hearings or mediation

If the court rules in your favor, you’ll receive a judgment—a court order that confirms the debt is legally owed.

Step 3: Enforce the Judgment

Winning in court is only half the battle. If the debtor still won’t pay, you must enforce the judgment using legal tools like:

• Wage garnishment: Collecting a portion of the debtor’s income

• Bank account seizure: Freezing and withdrawing funds from the debtor’s account

• Judgment liens: Filing a lien against the debtor’s property to block refinancing or sale

Each method has its own filing procedures and timeline—so working with an attorney is recommended.

Other Options to Consider

Depending on the situation, you may also:

• File a UCC-1 to secure an interest in business equipment

• Record a mortgage or promissory note against real estate

• File a claim against the debtor’s estate if they’ve passed away

• Pursue lien enforcement for construction or contractor debts

  
  

Final Thought

If someone isn’t paying you, you’re not powerless. Whether you’re a business owner, landlord, lender, or service provider, there are clear legal paths to recover what you’re owed.

At Title Stream, our attorneys help creditors evaluate their options, take swift legal action, and collect using every tool available under Louisiana law.