Why Should You Turn Your Company’s Accounts Receivable Over to a Contingency Basis Attorney
If you're a business owner or creditor, you know that chasing unpaid debts can be time-consuming, frustrating, and often fruitless. Delinquent accounts can eat into your bottom line, disrupt cash flow, and divert valuable resources from more profitable ventures, like actually running and growing your business. One solution that many businesses overlook is turning their debt collection efforts over to an attorney who works on a contingency fee basis.
The prospect of hiring an attorney for an issue that’s already costing you money can be daunting, but contingency fees are special - Here’s why hiring Wakefield Law could be the best choice for your business.
1. No Upfront Costs
One of the biggest advantages of hiring a contingency-based attorney for debt collection is that there are no upfront costs. You only pay if the attorney successfully recovers the debt. This arrangement aligns the attorney’s interests with yours — they are motivated to collect as much as possible because their payment depends on the recovery.
This fee structure is ideal for businesses that need to recover unpaid debts but are hesitant to pour more money into legal or collection fees without a guaranteed outcome.
2. Maximized Recovery Efforts
When you hire an attorney on a contingency basis, they’re focused on getting results. Debt collection attorneys are experienced in negotiating with debtors, filing lawsuits if necessary, and navigating the legal landscape to secure a favorable outcome. They use their knowledge of the legal system and leverage the law to pressure debtors into paying what they owe. Also – we don’t get paid until you do, so we’re motivated to move quickly and effectively.
Attorneys also have access to tools and strategies that traditional collection agencies or billing departments may not, such as the ability to file lawsuits, obtain judgments, summon individuals into court, subpoena financial records and garnish wages or bank accounts. These additional avenues of recovery increase the likelihood of success.
3. Time Savings for Your Business
Managing delinquent accounts is not only frustrating but also a major drain on time and resources. By outsourcing your collections to an attorney, you can focus on running your business while they handle the legal process. Instead of dedicating your employees' time to chasing down payments, they can concentrate on their primary responsibilities and help grow your business.
Additionally, an attorney can often expedite the collection process, as debtors can be more likely to respond quickly when they receive correspondence from a law firm rather than a standard collection agency or the actual business who is owed the money.
4. Legal Protection and Compliance
Debt collection is governed by a variety of state and federal laws, including the Fair Debt Collection Practices Act (FDCPA). A misstep in the collection process could result in legal liabilities for your business, including penalties or lawsuits brought by debtors. Attorneys who specialize in debt collection are well-versed in these regulations and will ensure that the entire process is handled legally and ethically.
Hiring a debt collection attorney helps minimize the risk of non-compliance with debt collection laws, protecting your business from potential legal exposure.
5. Improved Debtor Response
Debtors often take creditor calls or collection agency letters lightly. However, receiving a demand letter from an attorney can have a more significant impact. Knowing that a legal professional is involved often compels debtors to take the matter seriously and prioritize repayment. In some cases, this pressure can lead to a faster resolution, without the need for litigation.
If you’re tired of chasing delinquent accounts with little to no success, consider working with Wakefield Law. We specialize in debt collection all over Virginia and save money while mitigating risk using the contingency fee structure. Give us a call to learn more! 7037719740