Discovery Demands and Debt Collection

Black book with a pen sitting on top.You just received word that your nonpaying client hired counsel and is defending the case. They served an answer and discovery demands. Discovery? In debt collection cases? What should you expect?

Discovery is part of the litigation process even in NY debt collection cases. Most importantly, understanding what to expect and preparing in advance will lessen the burden of discovery demands.

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When Attempting to Renegotiate the Deal AGAIN Is Just Another Delay Tactic

At some point,hourglass showing time passing. it becomes apparent that the debtor’s attempts at resolution are nothing more than delay tactics.

Such is the case currently where a client placed a claim with us for collection.

Our client is an independent contractor. He and the debtor company had been working together for well over a year. Suddenly, the company became delinquent on the weekly compensation. As a remedy, the debtor company’s principal issued a series of postdated checks to our client dated six months out. The parties continued their working arrangement. Six months later, our client began depositing the post-dated checks. One by one the checks returned. Each check was unpaid due to insufficient funds and that added to the debt. Continue reading “When Attempting to Renegotiate the Deal AGAIN Is Just Another Delay Tactic”

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Mandatory Mediation for New York Supreme Court Debt Collection Cases

New York Supreme Court has a pilot program for the automatic referral of many debt collection cases to mandatory mediation. The program requires that all cases designated a contract matter (debt collection case) will go to mediation. This mandate is for … Continue reading

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NY Debt Collection Lawyers and Contingency Fees

White desk with clock, smartphone and notebook.Prospective clients regularly ask if we work on contingency fee arrangements in NY debt collection cases. In a contingency fee arrangement, the lawyer agrees to accept a fixed percentage, often one-third of the recovery amount, the amount finally paid to the client.

Especially in debt collection cases, a lawyer considers several factors before agreeing.

If a client cannot pay the legal fees, the lawyer may consider the option of a mixed fee arrangement. This combines a lower contingency fee percentage with a lower hourly rate. A client might want a contingency fee arrangement to keep from throwing good money after bad.

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