Effective Methods for Collecting on a Legal Judgment

When it comes to collecting on a legal judgment, having an effective recovery system in place is crucial. This article explores the different phases of the recovery process and provides insights into the litigation recommendations, collection rates, and fees involved in the process.

Key Takeaways

• Having a structured recovery system is essential for successful collection on legal judgments.
• Consider litigation recommendations carefully based on the likelihood of recovery.
• Understand the collection rates and fees associated with the recovery process.
• Phase One involves initial contact and investigation of debtors, leading to Phase Two if initial attempts fail.
• Be aware of the costs involved in legal action and the potential outcomes for collection.

Recovery System for Collecting on a Legal Judgment

Initial Phase of Recovery

The journey to reclaim what’s owed begins swiftly. Within 24 hours of account placement, a multi-pronged approach is launched. Debtors receive the first of four letters, while exhaustive skip-tracing and investigations aim to uncover optimal financial and contact information.

• Daily attempts to engage the debtor span from phone calls to emails and texts, persisting for 30 to 60 days.
• If these efforts falter, the case escalates to Phase Two, involving our network of affiliated attorneys.

The goal is clear: establish contact, negotiate resolution, and avoid the need for litigation. The initial phase is critical, setting the tone for the recovery process and providing a foundation for subsequent actions.

Persistence and thoroughness in this phase can significantly influence the likelihood of a successful recovery without resorting to more drastic measures.

Litigation Recommendation

When the initial recovery efforts fail to yield results, litigation may be the next advisable step. Deciding to litigate is a significant move that involves additional costs and considerations. If you opt for legal action, be prepared to cover upfront legal expenses, which can range from $600 to $700. These costs are necessary for filing a lawsuit and pursuing the debtor in their jurisdiction.

Once the lawsuit is filed, all efforts will be concentrated on recovering the full amount owed, including the costs incurred from the legal action. If litigation proves unsuccessful, rest assured that you will not be further indebted to the firm or the affiliated attorney.

It’s crucial to weigh the potential for recovery against the costs of litigation. Utilizing a collection agency for enforcing judgments offers businesses a cost-effective, efficient, and expert-driven solution to recover owed funds while maintaining professionalism and preserving relationships. Here’s a breakdown of the collection rates based on the number of claims and age of accounts:

• For 1-9 claims:

  • Accounts under 1 year: 30%
  • Accounts over 1 year: 40%
  • Accounts under $1000: 50%
  • Accounts placed with an attorney: 50%

• For 10 or more claims:

  • Accounts under 1 year: 27%
  • Accounts over 1 year: 35%
  • Accounts under $1000: 40%
  • Accounts placed with an attorney: 50%

Collection Rates and Fees

After understanding the collection rates and fees, it’s crucial to consider the next steps. Deciding whether to litigate or not is a pivotal moment in the recovery process. If litigation is chosen, be prepared for upfront legal costs, which typically range from $600 to $700. These costs cover court fees, filing fees, and other related expenses. Should litigation prove unsuccessful, rest assured that you will owe nothing further to the firm or affiliated attorney.

Here’s a quick breakdown of DCI’s collection rates:

• For 1-9 claims:

  • Accounts under 1 year: 30%
  • Accounts over 1 year: 40%
  • Accounts under $1000: 50%
  • Accounts with an attorney: 50%

• For 10+ claims:

  • Accounts under 1 year: 27%
  • Accounts over 1 year: 35%
  • Accounts under $1000: 40%
  • Accounts with an attorney: 50%

Remember, the age of the account and the number of claims can significantly impact the collection rate. Choose your strategy wisely to maximize recovery.

Debt Collectors International (DCI) specializes in enforcing judgments, offering garnishments, debtors exams, property levies, and specialized methods for successful collections.

Recovery System for Collecting on a Legal Judgment

What is the process for the initial phase of recovery in the judgment collection system?

The initial phase involves sending letters to the debtor, skip-tracing and investigating to gather debtor information, and attempting to contact the debtor for resolution.

What is the litigation recommendation in the recovery system for collecting on a legal judgment?

The recommendation includes either closing the case if recovery is unlikely or proceeding with legal action, with upfront legal costs to be paid by the client.

What are the collection rates and fees for the recovery system?

The collection rates vary based on the number of claims submitted, the age of the accounts, and whether accounts are placed with an attorney.

What happens if the client decides not to proceed with legal action in the recovery system?

The client has the option to withdraw the claim and owe nothing to the firm or attorney, or continue with standard collection activities.

What are the upfront legal costs involved in proceeding with legal action in the recovery system?

The upfront legal costs typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction.

What are the closure options if attempts to collect via litigation fail in the recovery system?

If collection attempts fail, the case will be closed, and the client will owe nothing to the firm or affiliated attorney.