We have developed a network of debt collection attorneys all over the United States who will work for us on a contingency basis. In most cases, the lawsuit needs to be filed where the debtor is located which necessitates having this network. Having debt collection attorneys who will work on a contingency basis gives our clients a huge advantage when litigation is required. It allows us to keep the costs low for our clients while debtors will have to pay their attorneys on an hourly basis. This typically puts significant pressure on the debtor to resolve the matter or alternatively, allow us to get a default judgment and then proceed to the judgment collection phase.
We never litigate without the client’s written instructions to proceed to court. We get you a firm quote based on the specifics of your particular claim.
We believe that the primary factor to evaluate when considering going to court is Return on Investment. There are some costs involved in going to court, as explained in our video and transcript on debt collection litigation. We carefully evaluate the potential costs and the likelihood of actually collecting to help our clients understand the potential return on investment for debt collection litigation and we compare this to the other alternatives available.
We use a simple equation during this analysis process, as shown in the example below:
- RM20,000 – Potential Recovery
- RM13,340 – Net Recovery(after 33% contingency fee)
- 50% – Likelihood of actually collecting
- RM6,670 – Expected value of Recovery
We carefully evaluate each of these variables before providing our clients with a recommendation and the analysis behind that recommendation. Estimating the likelihood of collecting is the most difficult part of this. We explain many of the factors we consider in this easy to read debt collection litigation graphic that has been published in industry newsletters.We manage the litigation process and the debt collection attorneys for our clients and provide recommendations at each step along the way.