Getting paid can sometimes take longer than expected. But, how long? That depends on whether your client has a deep pocket. And also how long they want to stretch out and avoid payment.
Consider this: A contingency fee is the most common way to handle claims. When there appears to be a possibility of collection, your collection attorney will continue to work on the case until you receive payment.
The same does not hold true for your nonpaying customer. Unless your client is an attorney and will self-represent or has a friend who is a lawyer or one on staff, the corporation you sue for nonpayment must hire counsel to represent them. They cannot represent themselves.
The non-paying customer will have to pay for representation.
Continue reading “How Long Can a Customer Avoid Payment?”
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.
Continue reading “NY Debt Collection Lawyers and Contingency Fees”
After months of trying — and failing — to successfully collect monies owed by a former customer, chances are it’s time to consult someone with debt collection experience.
Perhaps you’ve done your research: You’ve investigated local firms and agencies, taken notes, and compared fees. You’ve done the math, but have you really worked out the best deal? Continue reading “Does a Lower Contingency Fee Mean More Money in Your Pocket?”
The traditional method of billing for commercial debt collection services is contingency fee; no collection, no fee. It is suggested that collection law firms should break tradition and offer different fee structures. Fees need to vary based upon client needs; i.e., hourly, non-contingent, contingent, etc. Some creditors may prefer to pay an hourly fee instead of a straight contingency fee. Others may prefer a flat fee arrangement. To reduce overall collection fees, some may prefer to pay an up front non-contingent fee together with a lower contingency fee on the back. Continue reading “What are the Fees for Commercial Debt Collection Services?”