It’s a general truism that no one wants to go to court, especially over financial issues. Even if you win a court case, you’ve still lost valuable time and money. Litigation costs more and takes longer than negotiating outside of court, and winning a judgment does not guarantee payment.
However, usually the threat of going to court is enough to persuade someone to negotiate a settlement. At GK Soh Debt Recovery, we have an in-house law firm, but we do not use them to sue. Instead, we do a full second collection effort under their name at the same contingency rate (10% to 25%) we charge when collecting under our collection agency name. Over 97% of our successfully resolved cases are resolved without going to court.
If we do have to go to court, we have a nationwide network of attorneys who will sue on a contingency basis. We win 99.9% of our collection lawsuits. It can cost between RM300 – RM4,000 to file a lawsuit, and receiving a judgment takes a minimum of four months and can take up to twenty months. The contingency rate is typically 30% to 35% including both the attorney and GK Soh Debt Recovery fees. Rest assured, the contingency rate applies only to amounts collected, regardless of the amount of the judgment. Of course, judgment collection efforts can be taken if the debtor does not pay.
If you are considering taking legal action against a company, you probably have a lot of questions.
- Litigation Timeline
- Litigation Costs
- Litigation Process
Remember, suing for unpaid debts should always be a last resort.