Managing non-payment in industrial equipment trade with Mexico can be a challenging task. In order to effectively recover company funds, a structured Recovery System is essential. This system consists of three phases that involve thorough investigation, communication with debtors, and potential legal action. Understanding the key takeaways from each phase is crucial for successful debt recovery and financial management in industrial equipment trade with Mexico.
Key Takeaways
- Implement a Recovery System with three distinct phases for efficient debt recovery process.
- Utilize skip-tracing and investigation to obtain accurate debtor information for effective communication.
- Consider legal action as a last resort after exhausting all other collection methods.
- Understand the costs and implications of litigation, including upfront legal fees and potential recovery rates.
- Tailor collection rates based on the age and amount of accounts submitted for efficient fund recovery.
Recovery System for Company Funds
Phase One
As we initiate Phase One, we hit the ground running. Within 24 hours of a non-payment report, our team springs into action. We dispatch the first of four letters, ensuring the debtor is aware of their obligation. Our approach is comprehensive; we employ skip-tracing to gather the most up-to-date financial and contact details.
We don’t just stop at letters. Our collectors are relentless, leveraging phone calls, emails, text messages, and faxes to reach a resolution. It’s a multi-channel assault designed to elicit a response. Here’s what you can expect:
- Daily contact attempts for the first 30 to 60 days
- A thorough investigation into the debtor’s financial standing
- Persistent communication efforts to secure payment
If our efforts in Phase One don’t yield results, we’re prepared to escalate. Phase Two involves our network of affiliated attorneys, ready to apply legal pressure within the debtor’s jurisdiction. It’s a seamless transition, ensuring no momentum is lost in the recovery process.
Phase Two
Once we escalate to Phase Two, our affiliated attorneys take the helm. They’re armed with persuasive letters and relentless follow-ups. Here’s what unfolds:
- A series of demand letters, drafted on the attorney’s letterhead, are dispatched to the debtor.
- Parallel to the mailing campaign, the attorney’s team initiates phone contact, leaving no stone unturned.
If these intensified efforts don’t break the deadlock, we’re transparent about it. You’ll receive a comprehensive report detailing the impasse and our suggested course of action.
Our commitment is steadfast: we pivot strategies without missing a beat, ensuring every viable avenue is explored before moving to the decisive Phase Three.
Phase Three
After exhaustive efforts in the first two phases, we reach the decisive Phase Three. Here, we make a critical evaluation of the debtor’s assets and the facts of the case. If the likelihood of recovery is low, we’ll advise closing the case, with no fees owed to us or our affiliated attorneys.
However, should litigation seem viable, we present you with a choice. Opting out incurs no cost, but proceeding requires covering upfront legal expenses. These typically range from $600 to $700, depending on the jurisdiction. Upon your decision to litigate, we’ll initiate legal proceedings to recover the full amount due, including filing costs.
Our fee structure is straightforward and competitive, ensuring transparency at every step. Here’s a quick breakdown:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
In the event of unsuccessful litigation, rest assured, you owe us nothing further. Our commitment is to a no recovery, no fee policy, aligning our interests with your success.
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 attempting to contact debtors for resolution. Phase Two includes forwarding the case to affiliated attorneys for legal action. Phase Three involves either recommending case closure or proceeding with litigation.
What happens if recovery is not likely in Phase Three?
If recovery is not likely in Phase Three, the case may be recommended for closure, and no fees will be owed to the firm or affiliated attorney. Alternatively, litigation may be recommended, and upfront legal costs will be required if the client decides to proceed with legal action.
What are the rates for the recovery services?
The rates for the recovery services vary based on the number of claims submitted and the age and amount of the accounts. Rates range from 27% to 50% of the amount collected, depending on the specific circumstances.
What actions are taken in Phase Two of the Recovery System?
In Phase Two, the case is forwarded to a local attorney within the network. The attorney drafts letters demanding payment, attempts to contact the debtor, and provides recommendations for the next steps if resolution is not achieved.
What are the initial steps in Phase One of the Recovery System?
In Phase One, letters are sent to debtors, skip-tracing and investigation are conducted, and attempts are made to contact debtors for resolution. Daily attempts are made for the first 30 to 60 days, and if unsuccessful, the case proceeds to Phase Two.
What are the options if legal action is recommended in Phase Three?
If legal action is recommended in Phase Three, the client can choose to proceed with litigation by paying upfront legal costs. If litigation fails, no fees will be owed to the firm or affiliated attorney.
