Your debtor isn’t paying. Should you sue to collect your money?
Whether to pursue litigation or not should be an economic decision rather than an emotional decision. Does it make economic sense to sue? Does the anticipated recovery on your claim justify digging into your pocket for NYC court costs or are you throwing good money after bad?
Assuming the attorneys’ fees are contingent upon collection (if your attorney does not collect, you don’t pay them a fee), just how much will you need to plunk down for NYC court costs and what will you see in your pocket at the end of the case as net recovery? (You will need to also consider the time you will spend pursuing your case. Make sure to put a dollar value on your time spent away from your business.)
If you win, the court costs you went out of pocket for will be added to the judgment. The caveat is costs and fees, if awarded, will only be recoverable if the judgment is collected. That’s another reason to have your collection attorney assess collectability before suit.
If the case is settled before the entry of judgment settlement negotiations should include a request for reimbursement of the costs, principal, interest, and attorneys’ fees, if possible.
Having a clear understanding of all NYC court costs, fees and time that will be invested in the case is necessary to enable you to make the right economic decision. For additional information about NYC debt collection costs, fees and procedures or to place a claim call (212) 686-0100 or email Jocelyn directly at jnager@ffgnesqs.com.
