Legal Debt Collections Agency: Attorneys, Law Firms & Courts

Legal entities like law firms, independent attorneys, and even the district courts regularly need the help of a debt collection agency to recover money from unpaid accounts. People often use the legal services of a lawyer but fall behind in making promised installments. Similarly, district courts often issue summons and notices to make a payment, just to find that these individuals simply do not respond or have moved away from their residence on file.

Recovering Unpaid Bills for Law Firms Nationwide Need a collection agency: Contact Us

The main reason the legal collections activity needs to be outsourced is that engaging in-house staff for debt recovery is very expensive. Own employees do not have tools and subscriptions to some critical services required to locate the debtor (skip tracing), and send written demands with increasing intensity. They find it difficult to regularly follow up with clients for payments if the debtor has agreed to pay money in installments. They are also not fully trained on the most up-to-date federal and state debt collection laws when trying to recover unpaid bills from defaulters.

Collection agencies are experts in collecting debt; that is what they do every single business day. Debtors are more inclined to pay off when a collection agency is involved versus when the notices are issued under the legal entity’s name.

Check this: Cost of hiring a collection agency

The main reason collection agencies can send Collection Demands at such a reasonable cost is because they have automated systems and process accounts in bulk.  Sending five letters, which includes Scrubs like “Change of Address”, “Bankruptcy Check” and “Litigious Person check” at no additional cost improves the chances of collections and also reduces the possibility of being hit by a counter-lawsuit.

Once a debtor does not respond to collection letters, the next steps are Collection Calls or Filing a Lawsuit. These are contingency-based services and involve utilizing advanced Skip Tracing services. Non-payment can also lead to reporting the case to a credit reporting agency or follow-up with cosigners.

Collection Letters Service

The upfront cost for 5 Collection Letters is about $15 per account. Debtors pay directly to you, no other fees. Low cost option. Good for accounts less than 120 days past due.

Collection Calls Service

Contingency fee only. No upfront or other fees. Agency gets paid a portion of money they recover.  No recovery-No fees. Best for accounts over 120 days. A debt collector calls debtor many times. If everything fails, a possible Legal Suit if recommended by the attorney.

If you need a collections agency to recover money from past-due legal accounts: Contact us