You have sent the invoices. You have made the polite phone calls. You have listened to the excuses about “checks in the mail” and “temporary cash flow issues.” Now, you are met with silence.
In the world of debt recovery, there comes a point where diplomacy fails and legal enforcement begins.
However, most business owners hesitate to pull the trigger on a lawsuit. They picture expensive hourly lawyers ($350/hour), massive retainers, and months of distraction. So, they write off $15,000 or $30,000 as “bad debt.”
This is a mistake. Modern debt litigation is efficient, data-driven, and—with NexaCollect—designed to minimize your financial risk.
We bridge the gap between standard collections and the courtroom. We provide access to a nationwide network of debt litigation attorneys who work on a Contingency Basis, meaning you don’t pay legal fees unless they collect.
The Strategic Advantage: Why “Agency First” Matters
Some businesses want to skip straight to a lawsuit. We advise against that. Utilizing our standard collection phase first is a crucial tactical move:
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Kill the “Counter-Suit”: If you sue a customer out of the blue, they often panic and file a counter-lawsuit claiming they “never received the bill” or were “blindsided.” By letting us work the file first, we create a documented, compliant paper trail of communication. This destroys their defense in court.
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The Credit Bureau Lever: Before a suit is even filed, we report the debt to major credit bureaus (Equifax, Experian, TransUnion). Often, the mere drop in their credit score—impacting their ability to buy a car or refinance a home—forces payment without a single court filing.
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Filter Before You File (The “Asset Scrub”): The only thing worse than not getting paid is paying a lawyer to sue someone who is bankrupt. Before we recommend legal action, we conduct a deep investigation into the debtor’s assets (bank accounts, real property, W-2 employment). We only sue if the data shows they can pay.
No Retainers, No Hourly Billing
Traditional law firms require $3,000–$5,000 upfront just to open a file. That model is broken.
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Our Model: Our network attorneys work on a 50% contingency fee. If the lawsuit yields zero dollars, you owe zero legal fees.
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The Filing Fee Reality: You are responsible for the hard court filing costs (typically $250 to $600, depending on the state/county).
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The Reimbursement: Here is the good news—these filing fees are added to the final Judgment amount. When the debtor starts paying, you get reimbursed for these costs first.
Recent Legal Victories: Enforcing Creditor Rights
We are actively securing judgments and settlements for clients who thought their money was gone.
The “Wholesale Inventory” Breach (Illinois)
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The Scenario: An electronics distributor shipped $42,000 worth of components to a retailer. The retailer sold the goods but refused to pay the invoice, citing “cash flow tightness” before cutting off contact.
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The Action: Our asset scrub revealed the retailer was still operating and had active merchant processing accounts. We filed suit.
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The Result: Facing a bank levy that would freeze their operations, the retailer settled 3 days after being served. They paid $38,000 immediately to dismiss the case.
The “Architectural Service” Ghost (California)
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The Scenario: An architecture firm completed final blueprints for a commercial renovation ($18,500 balance). The developer stalled payment for 8 months.
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The Action: We reported the debt to credit bureaus first (Step 3), then moved to litigation (Step 4) when the developer ignored the hit. We obtained a Default Judgment.
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The Result: The judgment lien prevented the developer from closing financing on a new project. They were forced to wire the full balance plus interest and court costs to clear the title.
Q&A: The Reality of Debt Lawsuits
Q: If I sue, do I have to go to court?
A: Rarely. Statistics show that 90-95% of debt collection lawsuits are resolved before trial. Most end in either a settlement (because the debtor doesn’t want to pay their own lawyer) or a Default Judgment (because they don’t show up). You would only need to appear if the debtor files a contest and it goes all the way to a trial.
Q: How long does a lawsuit take?
A: It varies by state court backlog, but generally:
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30-60 Days: To serve the debtor and wait for their answer window.
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3-6 Months: To obtain a Default Judgment.
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6-12 Months: If the debtor fights the case. Note: While slower than a phone call, a judgment is valid for 10-20 years and accrues statutory interest (often 5-10% per year).
Q: What is a “Default Judgment”?
A: This is the most common outcome (occurring in roughly 70% of cases). If the debtor fails to file a legal response to the lawsuit within the time limit (usually 20-30 days), the judge automatically rules in your favor. You win everything you asked for, without a trial.
Q: Can you sue a debtor in another state?
A: Yes. This is why you need us. If you are in Texas but your debtor is in New York, you generally need a lawyer licensed in New York. Our network covers all 50 states, ensuring jurisdiction is never an issue. This allows you to stretch your internal team further without hiring extra staff or searching for out-of-state counsel.
Stop Letting Debtors Bluff You
If they have the money but refuse to pay, they are betting on your inaction. Call their bluff. Using our legal network allows you to protect your name on Google while still getting paid, as the attorneys handle the hard conversations professionally.