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Effective Collection Post-Commercial Litigation

Effective Collection Post-Commercial Litigation is a crucial process for companies to recover funds owed to them after facing commercial disputes. In this article, we will explore a Recovery System for Company Funds and provide Litigation Recommendations to ensure successful fund recovery.

Key Takeaways

  • The Recovery System for Company Funds includes three phases: Phase One involves initial contact and investigation, Phase Two escalates to legal action if necessary, and Phase Three provides recommendations for closure or litigation.
  • Litigation Recommendations offer two options: closure if recovery is unlikely or legal action with upfront costs. Rates for collection services vary based on factors such as claim volume and account age.
  • Effective communication and thorough investigation are essential in the recovery process to maximize the chances of successful fund collection.
  • Deciding on legal action requires careful consideration of costs and potential outcomes, with the option to withdraw claims if necessary.
  • Companies should choose collection services with competitive rates and tailored solutions to optimize fund recovery and minimize financial risks.

Recovery System for Company Funds

Phase One

Within the first 24 hours of initiating Phase One, a multi-pronged approach is deployed to secure company funds. Immediate action is taken to ensure that the debtor is aware of the outstanding debt and the urgency of resolution. A series of four letters is dispatched, and extensive skip-tracing is conducted to pinpoint the most current financial and contact information.

Contact is key during this phase. Our collectors engage in relentless pursuit, utilizing phone calls, emails, text messages, and faxes. Daily attempts are made for the initial 30 to 60 days to negotiate a settlement. Should these efforts not yield results, the process seamlessly transitions to Phase Two, involving our network of affiliated attorneys.

The goal is clear: to achieve a resolution swiftly and efficiently, minimizing the need for prolonged legal action.

The initial phase is critical, setting the tone for the recovery process:

  • First contact via US Mail within 24 hours
  • Comprehensive skip-tracing and investigation
  • Persistent communication attempts

Failure to resolve the debt in Phase One prompts immediate escalation to the next phase, ensuring no momentum is lost.

Phase Two

Upon escalation to Phase Two, the case is transferred to a local attorney within our network, initiating a more formal approach to debt recovery. The attorney’s actions include:

  • Drafting and sending a series of authoritative letters on law firm letterhead, demanding payment.
  • Persistent attempts to contact the debtor via telephone, reinforcing the urgency of the situation.

At this stage, the focus intensifies on securing payment through increased legal pressure and direct attorney involvement.

Should these efforts not yield the desired results, a detailed report will be provided to you, outlining the challenges encountered and advising on the feasibility of proceeding to Phase Three. The decision to advance is critical and should be made with consideration of the potential costs and benefits.

Phase Three

Upon reaching Phase Three, the path forward becomes clear. The decision hinges on the feasibility of fund recovery. If prospects are dim, closure is the prudent choice. No further obligations to our firm or attorneys arise in this scenario.

Should litigation be the recommended route, a pivotal choice awaits. Opting out means no dues; opting in necessitates upfront legal costs. These costs, typically between $600 and $700, are essential for initiating legal proceedings.

The financial commitment to litigation is not without its merits. A successful lawsuit recovers not just the debt but also the costs incurred. However, if litigation does not yield results, the case concludes with no additional fees owed.

Our fee structure is straightforward and competitive, reflecting 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 summary, the closure or litigation decision is pivotal, with transparent costs and a clear fee structure guiding the way.

Litigation Recommendations

Recommendation for Closure

When the prospects of recovery are dim, closure becomes a pragmatic step. Assessing the debtor’s assets and the surrounding facts is crucial to this decision. If the likelihood of recovery is low, our firm advises to terminate the pursuit. This recommendation is cost-effective, as you will owe nothing for the closure.

Closure is not the end of the road. It is a strategic decision to minimize losses and reallocate resources more effectively.

Consider the following rates for closure decisions:

  • Accounts under 1 year: No fees
  • Accounts over 1 year: No fees
  • Accounts under $1000.00: No fees
  • Accounts placed with an attorney: No fees

These rates ensure that your financial exposure is limited and that you are not burdened with additional costs for uncollectible debts.

Recommendation for Legal Action

When the path to recovery necessitates legal action, a decisive stance is crucial. Weigh the potential gains against the upfront legal costs and consider the likelihood of successful collection. Legal fees, typically ranging from $600 to $700, are an investment towards reclaiming your funds.

Litigation is not a step to be taken lightly. It requires a commitment to see the process through and an understanding of the associated risks. If the attempts to collect via litigation fail, rest assured, you will owe nothing further to our firm or our affiliated attorney.

The decision to litigate should be based on a clear-eyed assessment of the debtor’s assets and the probability of recovery.

Here’s a quick overview of our rates for litigated accounts:

  • Accounts placed with an attorney: 50% of the amount collected.

Remember, this is a contingency rate, ensuring that our interests are aligned with your success in the recovery of funds.

Frequently Asked Questions

What is the Recovery System for Company Funds?

The Recovery System for Company Funds consists of three phases: Phase One involves sending letters to debtors, skip-tracing, and attempting to contact debtors for resolution. Phase Two includes forwarding the case to an affiliated attorney for legal action. Phase Three offers recommendations for closure or legal action based on the investigation results and debtor’s assets.

What happens if the possibility of recovery is not likely in Phase Three?

If the possibility of recovery is not likely in Phase Three, the recommendation will be to close the case, and the client will owe nothing to the firm or affiliated attorney for those results.

What are the options if litigation is recommended in Phase Three?

If litigation is recommended in Phase Three, the client can choose to proceed with legal action by paying upfront legal costs. If the client decides not to proceed, they can withdraw the claim without owing anything to the firm or affiliated attorney.

What are the legal costs involved in proceeding with legal action in Phase Three?

The legal costs for proceeding with legal action in Phase Three typically range from $600.00 to $700.00, including court costs and filing fees, depending on the debtor’s jurisdiction.

What are the rates for collection services offered by DCI?

DCI provides competitive collection rates based on the number of claims submitted within the first week. Rates range from 27% to 50% of the amount collected, depending on the age and amount of the accounts, as well as whether they are placed with an attorney.

What are the steps involved in Phase One of the Recovery System for Company Funds?

Phase One of the Recovery System includes sending letters to debtors, skip-tracing, investigating debtors’ financial and contact information, and attempting to resolve the matter through various communication methods like phone calls, emails, and faxes.


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