Share This Post
What You Should Know About Collection Attorneys and Fees
Becoming an entrepreneur has its perks and disadvantages. While you get to become your own boss, you also have to make sure that your company is headed in the right direction from a financial viewpoint. This means making sure that all of your account receivables are paid in a timely fashion. If a business partner or customer has fallen behind in paying the amount owed to you, hiring a collection attorney may be your best course of action. This article sets forth what you should know about collection attorneys and their fees.
How are attorney fees determined?
As you might know, the role of collection attorneys is to recover any payments that their clients are not able to obtain from your business partners or customers. Indeed, once an invoice is outstanding, its chances of recovery start dropping sharply. For instance, for an invoice that was supposed to be settled within 30 days, reaching the 35-day mark means that chances are you will be able to recover only a percentage of it. This is when business collection attorneys become helpful to make your business succeed. When hiring an experienced collection attorney, you agree to pay legal fees porportional to whatever amount of debt they are able to recover. In other words, if the attorney does not collect anything, the attorney does not get paid.
Collection agencies vs. collection attorneys
Although to some extent they essentially perform the same job, collection attorneys are fundamentally different from collection agencies. Collection agencies have a reputation for their harassment tactics, which rarely achieve the success that attorneys have. On the other hand, collection attorneys use their knowledge of the law to explain to debtors that their failure to pay will result in legal action, and that filing or threatening to file for bankruptcy for example will not deter them from obtaining the debt that is owed. Because of their superior communication skills and the fact that attorneys unlike collection agencies can file suit on your behalf, they are usually more successful in collecting from debtors than collection agencies.
If you find your business has accounts that are more than thirty days overdue, we urge you to give us a call, so that we can assist you in getting the money you are entitled to. Remember you pay us nothing unless we are able to collect money for you. It costs nothing for us to evaluate your claim. You can contact us by email or by phone.