After successfully mediating settlements, the pursuit of unpaid bills is a crucial step in recovering company funds. This article provides an overview of the recovery system, recommendations post-mediation settlements, and collection rates to guide companies in their pursuit of unpaid debts.<\/p>\n

Key Takeaways<\/h3>\n

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• Consider closure of the case if recovery is unlikely after thorough investigation.<\/li>\n
• Decide between litigation or standard collection activity for pursuing unpaid bills.<\/li>\n
• Be aware of legal action costs and upfront fees for proceeding with litigation.<\/li>\n
• Understand the collection rates based on the number of claims submitted.<\/li>\n
• Utilize the 3-phase recovery system for efficient debt recovery.<\/li>\n<\/ul>\n

  Recovery System Overview<\/h2>\n

  Phase One<\/h3>\n

  Immediately after initiating the recovery process, action is swift<\/strong>. Within the first 24 hours, a multi-channel communication strategy is deployed, including the first of four letters dispatched to the debtor. The debtor’s information undergoes skip-tracing<\/em> and thorough investigation to ensure the best contact and financial details are on hand.<\/p>\n

  Efforts to resolve the account are persistent, with daily attempts encompassing phone calls, emails, text messages, and faxes. This intensive 30 to 60-day period is crucial for setting the stage for successful recovery or escalation to the next phase.<\/p>\n

  \nThe goal is clear: establish contact and seek resolution before moving to more stringent measures.\n<\/p><\/blockquote>\n

  Should these efforts not yield the desired outcome, the case transitions seamlessly to Phase Two, involving our network of affiliated attorneys.<\/p>\n

  Phase Two<\/h3>\n

  Upon escalation to Phase Two, the case is transferred to a local attorney within our network. Immediate action<\/strong> is taken to intensify the pressure on the debtor:<\/p>\n

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  • A formal demand letter is drafted on law firm letterhead.<\/li>\n
  • Persistent contact attempts are made, combining calls and written notices.<\/li>\n<\/ul>\n

    If these efforts do not yield results, a detailed report is prepared, outlining the challenges and recommending potential next steps. This strategic assessment<\/em> is crucial for deciding whether to advance to Phase Three.<\/p>\n

    \nThe goal is to resolve the debt without further escalation, but preparedness for the next phase is essential.\n<\/p><\/blockquote>\n

    Phase Three<\/h3>\n

    At the crossroads of Phase Three, the path forward is clear-cut. Decisive action<\/strong> is paramount. If the debtor’s assets suggest recovery is improbable, closure<\/em> of the case is advised, sparing you further costs. Conversely, choosing litigation necessitates a financial commitment for court-related expenses, typically between $600 to $700.<\/p>\n

    \nThe decision to litigate is critical. It involves upfront investment with the potential for full recovery, including legal fees.\n<\/p><\/blockquote>\n

    Should litigation proceed and not yield results, rest assured, no additional fees will be owed to our firm or the affiliated attorney. Below is a succinct overview of potential costs:<\/p>\n\n\n\n\n\n

    Action<\/th>\n

    Cost Range<\/th>\n<\/tr>\n<\/thead>\n

    Court Costs, Filing Fees, etc.<\/td>\n

    $600 – $700<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Remember, each step in this phase is designed to bring you closer to the resolution of your unpaid bills, with transparency and efficiency at the forefront.<\/p>\n Recommendations After Mediation Settlements<\/h2>\n Closure of the Case<\/h3>\n After mediation, the closure of the case marks a critical juncture. Decisive action<\/strong> is paramount, whether it leads to the termination of proceedings or the initiation of further collection efforts. If the likelihood of recovery is deemed low, closing the case may be the most prudent course of action, sparing you additional costs and effort.<\/p>\n However, should you opt for continued pursuit, the following steps are typically involved:<\/p>\n \n Evaluation of the debtor’s assets and the facts of the case<\/li>\n Decision on whether to proceed with litigation or standard collection activities<\/li>\n Understanding the potential upfront legal costs<\/li>\n<\/ul>\n \nIt’s essential to weigh the pros and cons of continued pursuit against the backdrop of potential recovery and associated expenses.\n<\/p><\/blockquote>\n In cases where litigation is chosen, be prepared for upfront costs, which can range from $600 to $700. This investment facilitates the filing of a lawsuit to recover all monies owed, including filing costs. Should litigation efforts not yield the desired results, the case will be closed, and no further fees will be owed to the firm or affiliated attorney.<\/p>\n Litigation Decision<\/h3>\n After mediation, the choice to litigate hinges on a critical assessment of potential recovery versus costs. Deciding to litigate<\/strong> is not trivial; it requires a careful balance of the likelihood<\/em> of collection against the financial and time investments involved.<\/p>\n \n Evaluate the debtor’s assets and the solidity of the case.<\/li>\n Consider the upfront legal costs, typically ranging from $600 to $700.<\/li>\n Weigh the impact of potential recovery against the expense and effort of litigation.<\/li>\n<\/ul>\n \nBefore proceeding, ensure that the decision to litigate aligns with your financial goals and the practicality of the case outcome.\n<\/p><\/blockquote>\n Remember, if litigation is deemed unfeasible, withdrawing the claim incurs no fees, allowing for a strategic retreat without financial loss.<\/p>\n Legal Action Costs<\/h3>\n When considering legal action, it’s crucial to weigh the potential recovery<\/em> against the upfront costs. Legal fees can quickly escalate<\/strong>, and it’s important to have a clear understanding of these expenses before proceeding. Typical costs include court fees, filing charges, and attorney fees, which can range from $600 to $700 depending on jurisdiction.<\/p>\n \nBefore committing to litigation, ensure you have a detailed breakdown of all anticipated legal costs. This transparency allows for informed decision-making and helps avoid unexpected financial burdens.\n<\/p><\/blockquote>\n Here’s a quick overview of the costs associated with legal action:<\/p>\n \n Court costs and filing fees: $600 – $700<\/li>\n Attorney fees: Variable based on case complexity<\/li>\n Additional expenses: May include process server fees, deposition costs, and expert witness fees<\/li>\n<\/ul>\n Remember, these costs are an investment towards recovering your unpaid bills. It’s essential to consider the likelihood of success and the amount to be recovered when deciding whether to litigate.<\/p>\n Collection Rates<\/h2>\n Rates for 1 through 9 Claims<\/h3>\n When dealing with a smaller volume of claims, the collection rates are structured to reflect the intensity of the recovery effort required for each individual account. The rates are contingent on the age and value of the accounts<\/strong>, ensuring a fair approach to the collection process.<\/p>\n Accounts under 1 year in age<\/em> are charged at 30% of the amount collected, while those over a year incur a 40% fee. For accounts valued under $1000.00, the rate increases to 50%, which is the same rate applied to accounts that necessitate legal intervention.<\/p>\n \nThe tiered rate system is designed to balance the recovery costs with the potential return, making it crucial for creditors to assess the viability of pursuing each claim.\n<\/p><\/blockquote>\n Here’s a quick breakdown of the rates:<\/p>\n\n\n\n\n\n\n\n\n Account Age\/Type<\/th>\n Collection Rate<\/th>\n<\/tr>\n<\/thead>\n Under 1 year<\/td>\n 30%<\/td>\n<\/tr>\n Over 1 year<\/td>\n 40%<\/td>\n<\/tr>\n Under $1000<\/td>\n 50%<\/td>\n<\/tr>\n With attorney<\/td>\n 50%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Remember, these rates apply to the first 9 claims within a week of placing the first account. It’s essential to consider these rates when deciding whether to proceed with the collection of unpaid bills post-mediation.<\/p>\n Rates for 10 or More Claims<\/h3>\n When handling a higher volume of claims, economies of scale come into play. Bulk submissions result in reduced rates<\/strong>, offering significant savings for your business. For 10 or more claims, the collection rates are adjusted as follows:<\/p>\n \n Accounts under 1 year in age: 27%<\/strong> of the amount collected.<\/li>\n Accounts over 1 year in age: 35%<\/strong> of the amount collected.<\/li>\n Accounts under $1000.00: 40%<\/strong> of the amount collected.<\/li>\n Accounts placed with an attorney: 50%<\/strong> of the amount collected.<\/li>\n<\/ul>\n These rates are designed to incentivize early action and the consolidation of claims. The efficiency<\/em> of processing multiple claims together allows for these discounted rates, ensuring that your pursuit of unpaid bills remains cost-effective.<\/p>\n \nIt’s crucial to consider the age and size of the debts when submitting claims. The sooner you act, the more favorable the rates. Remember, time is money.\n<\/p><\/blockquote>\n Frequently Asked Questions<\/h2>\n What happens if recovery is not likely after mediation settlement?<\/h3>\n If recovery is not likely after mediation settlement, we will recommend closure of the case and you will owe nothing to our firm or our affiliated attorney.<\/p>\n What are the options if litigation is recommended after mediation settlement?<\/h3>\n If litigation is recommended after mediation settlement, you can choose to proceed with legal action by paying upfront legal costs or withdraw the claim with no obligation to pay.<\/p>\n What are the legal action costs if proceeding with litigation after mediation settlement?<\/h3>\n The legal action costs if proceeding with litigation after mediation settlement typically range from $600.00 to $700.00, including court costs and filing fees.<\/p>\n What are the collection rates for 1 through 9 claims?<\/h3>\n For 1 through 9 claims, collection rates vary based on the age and amount of the accounts submitted, ranging from 30% to 50% of the amount collected.<\/p>\n What are the collection rates for 10 or more claims?<\/h3>\n For 10 or more claims, collection rates vary based on the age and amount of the accounts submitted, ranging from 27% to 50% of the amount collected.<\/p>\n What are the phases of the recovery system for pursuing unpaid bills after mediation settlements?<\/h3>\n The recovery system consists of Phase One, Phase Two, and Phase Three, each with specific actions and recommendations for pursuing unpaid bills after mediation settlements.<\/p>\n","protected":false},"excerpt":{"rendered":" After successfully mediating settlements, the pursuit of unpaid bills is a crucial step in recovering company funds. 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