Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the wordpress-seo domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/collsaglawyercom/public_html/wp-includes/functions.php on line 6114
Handling Unpaid Debts After a Contract Breach Lawsuit - Collections Agency Lawyer
CollectionsAgencyLawyer-_1_

Call 855-930-4343 Today!

Handling Unpaid Debts After a Contract Breach Lawsuit

Handling unpaid debts after a contract breach lawsuit requires a strategic approach to recover the owed funds effectively. In this article, we will explore the Recovery System for Unpaid Debts, including the Initial Recovery Phase, Legal Action Phase, Costs and Rates, and Recommendations.

Key Takeaways

  • Thorough investigation of debtor’s assets is crucial for determining the possibility of recovery.
  • Consider the option of litigation carefully before proceeding with legal action.
  • Be aware of upfront legal costs and fees associated with pursuing unpaid debts through legal channels.
  • Understand the competitive collection rates offered based on the number and age of claims submitted.
  • Regular communication and follow-up with debtors are essential in the debt recovery process.

Recovery System for Unpaid Debts

Initial Recovery Phase

The Initial Recovery Phase sets the stage for debt recovery. Within 24 hours of account placement, a multi-channel approach is launched. Debtors receive the first of four letters, while cases undergo skip-tracing for optimal contact information. Daily attempts to engage debtors span 30 to 60 days, utilizing calls, emails, and texts.

Persistence is key. The initial phase is aggressive, aiming for a swift resolution.

If these efforts fail, the process escalates to the next phase. Here’s a snapshot of the initial actions:

  • Sending of the first letter via US Mail
  • Comprehensive skip-tracing and investigation
  • Daily contact attempts by phone, email, and text

This phase is crucial, as it often determines the trajectory of the recovery process. A successful initial phase can lead to quick settlements and avoid the need for further legal action.

Legal Action Phase

Once the decision to pursue legal action is made, the financial implications come into sharp focus. Upfront legal costs are a reality, typically ranging from $600 to $700, depending on the debtor’s jurisdiction. These costs cover court fees, filing fees, and other related expenses. Upon payment, our affiliated attorney initiates the lawsuit, aiming to recover all monies owed, including the cost of filing.

Should litigation efforts not result in recovery, rest assured, you will owe nothing further to our firm or our affiliated attorney.

Our fee structure is designed to align with your success in debt recovery. We offer competitive collection rates, which vary based on the age of the account, the amount owed, and the number of claims. For instance, accounts under one year incur a 30% fee on the amount collected, while older accounts or those under $1000 have higher rates. Engaging an attorney for collection results in a 50% fee on the amount collected.

Here’s a quick overview of our rates:

Number of Claims Accounts < 1 Year Accounts > 1 Year Accounts < $1000 Attorney Involved
1-9 30% 40% 50% 50%
10+ 27% 35% 40% 50%

It’s crucial to weigh the potential recovery against these costs and rates. Our team will provide guidance, but the final decision rests with you. Choose wisely, as the path you select can significantly impact your financial recovery.

Costs and Rates

After assessing the feasibility of debt recovery and considering the costs involved, a strategic decision is crucial. Choose wisely between litigation and alternative recovery methods. If litigation is pursued, upfront legal costs are mandatory, typically ranging from $600 to $700. These cover court costs, filing fees, and other related expenses. Should litigation prove unsuccessful, rest assured, no further fees will be owed.

Our competitive rates are structured to align with the volume and age of claims:

  • For 1-9 claims:

    • Under 1 year: 30%
    • Over 1 year: 40%
    • Under $1000: 50%
    • With attorney: 50%
  • For 10+ claims:

    • Under 1 year: 27%
    • Over 1 year: 35%
    • Under $1000: 40%
    • With attorney: 50%

In the event of non-litigation, you may opt for standard collection activities or case closure, incurring no additional fees. The choice is yours, but it must be informed by the potential for recovery and the associated costs.

Recommendations

When facing unpaid debts post-lawsuit, decisive action is key. Evaluate the debtor’s assets thoroughly before proceeding. If recovery seems unlikely, consider closing the case to avoid unnecessary expenses. Conversely, if litigation appears viable, prepare for upfront legal costs, which typically range from $600 to $700.

Choose wisely between litigation and standard collection activities. Remember, if litigation fails, you owe nothing further. Below is a summary of our competitive collection rates:

  • For 1-9 claims:

    • Accounts under 1 year: 30%
    • Accounts over 1 year: 40%
    • Accounts under $1000: 50%
    • Accounts with an attorney: 50%
  • For 10+ claims:

    • Accounts under 1 year: 27%
    • Accounts over 1 year: 35%
    • Accounts under $1000: 40%
    • Accounts with an attorney: 50%

In every scenario, our goal is to maximize your recovery while minimizing your costs. Act promptly, but act wisely.

Frequently Asked Questions

What is the process for initial recovery of unpaid debts?

The initial recovery phase involves sending letters to the debtor, skip-tracing, and attempting to contact the debtor for resolution within the first 30 to 60 days.

What happens if recovery is not likely after investigation?

If recovery is not likely, the case may be recommended for closure, and no fees will be owed to the firm or affiliated attorney.

What are the options if legal action is recommended?

The options include proceeding with litigation by paying upfront legal costs or withdrawing the claim with no fees owed.

What are the upfront legal costs for litigation?

The upfront legal costs for litigation typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction.

What are the collection rates for debts based on age and amount?

The collection rates vary based on the age and amount of the debt, ranging from 27% to 50% of the amount collected.

How are the collection rates structured for different numbers of claims?

The rates vary depending on the number of claims submitted, with lower rates for higher numbers of claims.

Share:

More Posts

What to Do When Your Business Partner Defaults on a Settlement

When a business partner defaults on a settlement, it can be a stressful and uncertain time. Understanding the best course of action is crucial to recover the funds owed and minimize the impact on your business. This article outlines a structured approach to handling such defaults, including assessing the situation,

Getting Paid After Winning a Business Lawsuit

Winning a business lawsuit can be a significant victory, but it’s only the first step in the often complex process of actually collecting the awarded funds. The post-litigation collection process involves several stages and requires a strategic approach to ensure that the debt is recovered effectively. This article delves into

Getting Paid After Winning a Business Lawsuit

Winning a business lawsuit can be a significant victory, but the real challenge often lies in the post-litigation collection process. Understanding the steps involved in recovering the debt owed to you is crucial for turning a legal win into actual financial compensation. This article provides insights into the collection process,

What to Do When Your Business Partner Defaults on a Settlement

When a business partner defaults on a settlement, it can be a challenging and frustrating experience. Understanding the steps to take following such a default is crucial for recovery and decision-making. This article outlines a systematic approach to handling the situation, from assessing the default to exploring legal options, and