In the realm of USA-Japan food and beverage exports, addressing non-payment is a critical aspect that companies must navigate effectively. This article delves into a Recovery System for Company Funds and provides recommendations for handling non-payment cases.
Key Takeaways
- Implement a 3-phase Recovery System for efficient fund recovery process.
- Conduct a thorough investigation and closure process for non-payment cases.
- Carefully consider the decision to proceed with litigation in non-payment scenarios.
- Understand the legal action costs involved in pursuing non-payment cases.
- Be aware of the rates and fees associated with legal actions in non-payment situations.
Recovery System for Company Funds
Phase One
Within the first 24 hours of initiating Phase One, a multi-pronged approach is deployed to secure company funds. Immediate action is taken to send out the initial demand letter, and a comprehensive skip-tracing process begins to pinpoint the debtor’s financial status and contact information. Our team engages in relentless pursuit, utilizing phone calls, emails, text messages, and faxes to reach a resolution.
Daily attempts are made to contact the debtor, with the goal of resolving the matter swiftly. If these efforts do not yield results within 30 to 60 days, the case escalates to Phase Two.
The initial phase is critical in setting the tone for the recovery process. It is a period marked by intense communication and investigation, laying the groundwork for potential legal action if necessary.
Phase Two
Upon escalation to Phase Two, the case is transferred to a local attorney within our network. The attorney’s immediate action includes drafting a series of demand letters to the debtor, leveraging the weight of legal letterhead to prompt payment. Concurrently, the attorney’s team initiates phone calls to reinforce the urgency of the situation. Persistence is key; if these intensified efforts do not yield a resolution, a strategic assessment is conducted to determine the viability of proceeding to Phase Three.
- Drafting of demand letters on law firm letterhead
- Initiation of phone calls by attorney’s staff
- Assessment of case progression viability
At this juncture, it is crucial to evaluate the debtor’s response to the increased pressure and consider the practicality of further action. The outcome of Phase Two will significantly influence the recommended course of action, ensuring that resources are allocated judiciously.
Phase Three
Upon reaching Phase Three, the path forward becomes clear. If the debtor’s assets and the case facts suggest a low recovery likelihood, closure is advised, incurring no cost to you. Conversely, should litigation seem viable, a pivotal decision awaits.
Litigation entails upfront legal costs, typically ranging from $600 to $700. These fees cover court costs, filing fees, and other related expenses. Once paid, our affiliated attorney initiates legal proceedings to recover all owed monies.
Should litigation efforts not yield the desired results, rest assured, the case will be closed without further financial obligation to our firm or affiliated attorney.
Our fee structure is straightforward and competitive, with rates varying based on claim age, amount, and volume:
-
For 1-9 claims:
- Under 1 year: 30%
- Over 1 year: 40%
- Under $1000: 50%
- With attorney: 50%
-
For 10+ claims:
- Under 1 year: 27%
- Over 1 year: 35%
- Under $1000: 40%
- With attorney: 50%
These percentages reflect the amount collected, ensuring our interests align with your successful fund recovery.
Recommendations for Non-Payment Cases
Thorough Investigation and Closure
Before deciding on litigation, a thorough investigation is crucial. This involves assessing the debtor’s assets and the facts of the case. If recovery seems unlikely, closure is advised, sparing unnecessary expenses. Deciding against legal action allows for withdrawal of the claim without fees. Alternatively, standard collection activities can continue.
The choice to litigate requires understanding potential costs. Upfront legal fees, typically ranging from $600 to $700, must be considered. These cover court costs and filing fees, essential for initiating legal proceedings.
Here’s a breakdown of our competitive 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 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%
These rates are contingent on the amount successfully collected, aligning our interests with your recovery goals.
Litigation Decision
When faced with non-payment, the decision to litigate is pivotal. Careful consideration of the debtor’s assets and the likelihood of recovery must guide your choice. If litigation is deemed the feasible route, be prepared for the associated costs. These typically range from $600 to $700, depending on jurisdiction.
- Evaluate the debtor’s financial status
- Assess the probability of successful recovery
- Consider the upfront legal costs
The decision to litigate should not be taken lightly. It is a commitment of resources with no guaranteed outcome.
Remember, if litigation proceeds and is unsuccessful, you owe nothing further. However, should you choose to withdraw the claim, standard collection activities can continue. The table below outlines our competitive collection rates:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed Claims |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
These rates are tailored based on the number of claims and the age of the accounts. Choose wisely, as the path you take can significantly impact your recovery efforts.
Legal Action Costs
When considering legal action, it’s crucial to weigh the potential recovery against the upfront costs. Bold decisions require a clear understanding of the financial implications.
Upfront legal costs can include:
- Court costs
- Filing fees
- Attorney’s fees
These fees typically range from $600 to $700, depending on the jurisdiction of the debtor. It’s important to note that these are initial investments, with the hope of a favorable outcome.
Should the litigation efforts not result in recovery, the case will be closed, and you will not owe additional fees to the firm or affiliated attorney.
Here’s a breakdown of the collection rates based on the number of claims and age of accounts:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed Accounts |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Remember, these rates are contingent on the amount collected, emphasizing the importance of a strategic approach to litigation.
Frequently Asked Questions
What is the Recovery System for Company Funds?
The Recovery System for Company Funds consists of three phases: Phase One involves sending letters to debtors, skip-tracing, and contacting debtors for resolution. Phase Two includes forwarding the case to an affiliated attorney for legal action. Phase Three offers recommendations for closure or litigation based on investigation results.
What happens if the possibility of recovery is not likely in Phase Three?
If the possibility of recovery is not likely after investigation, the case may be recommended for closure, and there will be no fees owed to the firm or affiliated attorney. Alternatively, litigation may be recommended, requiring upfront legal costs paid by the client.
What are the upfront legal costs for proceeding with legal action in Phase Three?
The upfront legal costs for proceeding with legal action in Phase Three typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction. These costs cover court fees, filing fees, and other expenses.
What are the rates for collection services provided by the firm?
The firm provides competitive collection rates tailored to the number of claims submitted. Rates vary based on the age and amount of the accounts, ranging from 27% to 50% of the amount collected.
What actions are taken in Phase One of the Recovery System?
Phase One involves sending letters to debtors, skip-tracing, and contacting debtors for resolution within 24 hours of placing an account. Daily attempts are made to contact debtors for the first 30 to 60 days.
What steps are involved in Phase Two of the Recovery System?
Phase Two includes forwarding the case to a local attorney within the network, who drafts letters demanding payment from the debtor. The attorney and staff members attempt to contact the debtor via phone and letters.
