Recovering costs from international business litigation can be a complex and challenging process. It involves a multi-phase recovery system designed to help companies recoup funds owed to them. Understanding the key takeaways from each phase is essential for making informed decisions and maximizing the chances of successful recovery.
Key Takeaways
- Thorough investigation of debtor’s assets is crucial for determining the likelihood of recovery
- Options for closure of the case or proceeding with legal action should be carefully considered
- Upfront legal costs for litigation typically range from $600.00 to $700.00
- Competitive collection rates are tailored based on the number of claims submitted
- Daily attempts to contact debtors are made for the first 30 to 60 days
Recovery System for Company Funds
Phase One: Initial Recovery Process
Within the first 24 hours of initiating Phase One, a multi-pronged approach is deployed to secure a resolution. Debtors are immediately contacted through a series of four letters, complemented by rigorous skip-tracing to uncover the most current financial and contact information. Our team engages in persistent communication efforts, utilizing phone calls, emails, text messages, and faxes.
Daily attempts are made to reach a settlement within the critical first 30 to 60 days. Should these efforts not yield the desired outcome, the process seamlessly transitions to Phase Two, involving legal expertise.
The effectiveness of Phase One hinges on the urgency and consistency of these recovery attempts. Below is a summary of the initial actions taken:
- Sending the first of four letters via US Mail
- Conducting thorough skip-tracing and investigations
- Engaging in daily communication attempts with the debtor
Failure to secure a resolution propels the case into the hands of our affiliated attorneys, marking the commencement of Phase Two.
Phase Two: Legal Action and Attorney Involvement
Upon escalating to legal action, the process intensifies. Attorneys draft demands and initiate contact, leveraging law firm clout. If the debtor remains unresponsive, the case progresses, potentially to court. Litigation is costly; upfront fees range from $600 to $700, depending on jurisdiction. These cover court costs, filing fees, and more.
Deciding to litigate is pivotal. It’s a commitment to pursue what’s owed, with all associated risks and costs.
The attorney’s involvement is a clear signal to debtors: resolution or legal consequences. Here’s a breakdown of potential costs and collection rates:
| Claims Quantity | Age < 1 Year | Age > 1 Year | Under $1000 | With Attorney |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Each step is a calculated move towards recovery. The decision to proceed or withdraw hinges on a thorough evaluation of the debtor’s assets and the likelihood of successful recovery.
Phase Three: Recommendations and Decision Making
At the culmination of our comprehensive review, we arrive at a critical juncture. Decisions made here will chart the course of recovery efforts. Should the evidence suggest a low likelihood of asset recovery, our counsel is to terminate the pursuit. This conclusion incurs no fees, ensuring a risk-free assessment.
Conversely, if litigation appears viable, you face a pivotal choice. Opting out means no further obligation, while proceeding necessitates upfront legal costs. These typically span $600 to $700, covering court and filing fees. Our commitment is to initiate legal proceedings, aiming to recoup all owed sums, inclusive of filing expenses.
Should litigation not yield the desired outcome, rest assured, the financial burden on you ceases. Our firm absorbs the closure with no additional cost to you.
Our fee structure is transparent 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%
This tiered approach aligns our interests with your success, ensuring we are fully invested in the optimal recovery of your funds.
Frequently Asked Questions
What are the upfront legal costs for proceeding with legal action?
The upfront legal costs for proceeding with legal action typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction.
What happens if the recommendation is to close the case?
If the recommendation is to close the case due to the unlikely possibility of recovery, you will owe nothing to our firm or our affiliated attorney for these results.
What are the options if the recommendation is litigation?
If the recommendation is litigation, you will have the decision to proceed with legal action or to allow standard collection activity. If you decide not to proceed with legal action, you will owe nothing to our firm or our affiliated attorney.
What are the rates for DCI’s collection services?
DCI provides competitive collection rates tailored to the number of claims submitted within the first week of placing the first account. Rates depend on the age and amount of the accounts, as well as whether they are placed with an attorney.
What happens if attempts to collect via litigation fail?
If attempts to collect via litigation fail, the case will be closed and you will owe nothing to our firm or our affiliated attorney.
What are the actions taken in Phase One of the Recovery System?
Phase One involves sending letters to the debtor, skip-tracing and investigation, and attempting to contact the debtor for resolution using various communication methods. If all attempts to resolve the account fail, the case proceeds to Phase Two.
