Unpaid bills in consumer goods trade between the USA and Switzerland can be a significant challenge for companies. To address this issue, a Recovery System for Unpaid Bills has been developed, consisting of three phases. Let’s explore the key takeaways from this system:
Key Takeaways
- The Recovery System for Unpaid Bills includes three phases: Phase One, Phase Two, and Phase Three with specific actions and recommendations for each phase.
- Phase One involves sending letters to debtors, skip-tracing, contacting debtors, and escalating to affiliated attorneys if necessary.
- Phase Two includes drafting legal letters to debtors, contacting them via phone, and escalating the case further if needed.
- Phase Three provides recommendations for either closing the case if recovery is unlikely or proceeding with litigation, with associated costs and outcomes.
- Rates for the Recovery System vary based on the number of claims submitted and the age of the accounts, with different percentages for collection fees.
Recovery System for Unpaid Bills
Phase One
Within the first 24 hours of initiating Phase One, we spring into action. Our primary goal is to establish contact and seek resolution. We dispatch the initial letter and employ skip-tracing to gather the most current financial and contact information. Our team is relentless, making daily attempts through calls, emails, and texts.
- The first of four letters is sent via US Mail.
- Comprehensive skip-tracing and investigation.
- Persistent contact attempts for 30 to 60 days.
If our efforts in Phase One don’t yield results, we don’t waste time. We promptly escalate to Phase Two, engaging our network of affiliated attorneys in the debtor’s locale.
Phase Two
We’ve escalated the matter to our network of local attorneys, ensuring a heightened level of urgency. The attorney’s letterhead now carries the weight of our demands, signaling a serious shift in our approach. The attorney’s office begins a rigorous attempt to contact the debtor, combining the authority of legal stationery with persistent phone calls.
Persistence is key at this stage. If these intensified efforts don’t yield results, we prepare for the final phase. We’ll provide you with a detailed report outlining the challenges faced and our proposed course of action.
We stand at a crossroads: to press on with legal action or to reconsider our strategy. The choice will soon be yours.
Here’s a snapshot of our efforts in Phase Two:
- Drafting and dispatching attorney letters
- Persistent phone calls from the attorney’s office
- Comprehensive assessment of the debtor’s response
Should we proceed to litigation, be aware of the associated costs. These are typically in the $600-$700 range, depending on jurisdiction. Our commitment remains: no recovery, no fees.
Phase Three
At the culmination of our efforts, we face a decisive moment. We must choose the most prudent course of action based on our comprehensive assessment of the debtor’s situation. If prospects of recovery are dim, we advise case closure, absolving you of any financial obligation to us or our affiliated attorneys.
Conversely, should litigation seem viable, you’re at a crossroads. Opting out means no cost incurred, with the option to continue standard collection efforts. Choosing to litigate necessitates covering upfront legal expenses, typically between $600 to $700. Our affiliated attorney will then champion your cause in court.
Our fee structure is straightforward and competitive, ensuring fairness based on the age and amount of the claim, as well as the number of claims submitted.
Here’s a quick glance at our rates:
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For 1-9 claims:
- Under 1 year: 30%
- Over 1 year: 40%
- Under $1000: 50%
- With attorney: 50%
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For 10+ claims:
- Under 1 year: 27%
- Over 1 year: 35%
- Under $1000: 40%
- With attorney: 50%
In essence, our commitment is to your peace of mind, ensuring that the path taken is the most suitable for your unique circumstances.
Frequently Asked Questions
What is the Recovery System for Unpaid Bills?
The Recovery System for Unpaid Bills 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 includes recommendations for either closing the case 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 there will be no obligation to pay the firm or affiliated attorney. Alternatively, litigation may be recommended, and the client can choose to proceed with legal action by paying upfront legal costs.
What are the upfront legal costs for litigation in Phase Three?
The upfront legal costs for litigation in Phase Three typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction. These costs include court fees, filing fees, and other expenses related to filing a lawsuit.
What are the collection rates for accounts in Phase Three?
The collection rates in Phase Three vary based on the number of claims submitted. Rates range from 27% to 50% of the amount collected, depending on the age of the accounts, the amount owed, and whether the accounts are placed with an attorney.
What actions are taken in Phase One of the Recovery System?
In Phase One, letters are sent to debtors, skip-tracing is conducted to gather financial and contact information, and attempts are made to contact debtors for resolution through various communication methods such as phone calls, emails, and faxes.
What happens if Phase Two fails to resolve the account?
If Phase Two fails to resolve the account, the case is further escalated to affiliated attorneys who will draft demand letters, make phone calls to debtors, and continue efforts to reach a resolution. If all attempts fail, the client will be informed of the issues and the recommended next steps.
