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When you place an account, you
usually authorize the agency, with approval, to forward the claim to
an attorney in the area where the debtor is located. Of
course, the final decision is yours. You must determine
whether the likelihood of recovery on your claim, and if the
probable
amount of recovery gained will justify the time and expense of
litigation.
Litigation can be a very slow
process. Although the filing of a suit may prompt the debtor
to move forward and settle a case, crowded dockets and stall tactics
by the debtor can often delay a judgment for months or even
years. And then you still have to collect
it.
Court Costs and Suit Fee
If you authorize suit, you will be
advised of general court costs and the suit fee requested by the
attorney. These fees are in addition to the contingent
collection fees.
Attorney Suit Fees
These fees are for work performed in
preparing and filing papers, including appearances. Suit fees
may be contingent or more commonly non-contingent, or a combination
of both.
Court Costs and Fees
Process service, filing fees, and
other fees vary widely across states and jurisdictions. Court
costs can be refunded if collected.
Witnesses
In an uncontested default judgment,
witnesses are generally unnecessary. In some cases, however, the
court may require a witness. If claims are contested, usually
one or more witnesses are necessary who know the issues.
Counter Claim
The attorney may ask for a separate,
additional fee if a debtor files a counter claim which will require
your defense.
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