Originally Posted by Unregistered:
I realize I should have gotten a contract to them asap. Due to alot of things going on in my life at the same time I put it off believing I could trust this family. (we found out the home that we were renting was being sold in November, had no more than one month to find a house within the area that we could purchase and move, then unpack, organize and get adjusted to the new home) I had never had a problem with them up until this point. It is more common here for daycares to run without contracts than for daycares to run with contracts so I guess I didn't see it as something I needed to rush at, I realize now though that I should have put it on the top of my list.
I don't have parents sign contracts until they have been with me for a long time. Usually around the third to the sixth month I offer a contract. I am willing to have them leave without notice and would repay any in advance fees on the spot.
If you have three other families on contract and you didn't do it with them, I think the judge may wonder why THEM? Why would you allow THEM to not have a contract when you made sure everyone else did?
I think you need to be humble and return their funds completely and not waste another minute on this. You have to make mistakes in business to learn and you have made a big one. It's going to cost you a few hundred dollars and it will insure you don't make the mistake again.
If you don't have the money to give back to them then offer to make payments until you pay off the debt.