In the USA-Brazil renewable energy trade, the process of collecting overdue payments is crucial for maintaining financial stability and ensuring business continuity. This article explores the recovery system for company funds and the rates for debt collection in this specific trade scenario.
Key Takeaways
- Implement a 3-phase Recovery System for efficient collection of company funds.
- Consider the two recommendations for Phase Three: closure of the case or proceeding with litigation.
- Understand the rates for debt collection based on the number of claims and age of accounts.
- Be aware of the upfront legal costs involved in litigation for debt recovery.
- Utilize skip-tracing and investigative methods in Phase One to obtain debtor information and initiate contact.
Recovery System for Company Funds
Phase One
Within the first 24 hours of initiating Phase One, a multi-faceted approach is deployed to secure overdue payments. Immediate action is taken to ensure that the debtor is aware of the outstanding debt and the urgency of the situation. The process includes:
- Sending the first of four letters via US Mail.
- Conducting skip-tracing and investigations to gather optimal financial and contact information.
- Engaging in persistent communication efforts, including phone calls, emails, text messages, and faxes.
Daily attempts to contact the debtor are made for the initial 30 to 60 days, aiming for a swift resolution. In the event of non-compliance, the case escalates seamlessly to Phase Two, involving our network of affiliated attorneys.
The goal is to create a sense of immediacy and to leverage all available resources to recover the company’s funds efficiently. This phase lays the groundwork for a robust recovery system, setting the tone for the subsequent phases.
Phase Two
Upon escalation to Phase Two, the case is transferred to a local attorney within our network. This shift signifies a more formal approach to debt recovery. The attorney will draft and send a series of letters on their law firm letterhead, demanding payment. Concurrently, attempts to contact the debtor via phone intensify.
If these efforts do not yield results, a detailed report outlining the challenges encountered and recommended actions for Phase Three is prepared for the client.
The following table summarizes the attorney’s initial actions:
| Action | Description |
|---|---|
| Letter Drafting | Immediate drafting of demand letters. |
| Phone Contact | Persistent attempts to reach the debtor. |
| Case Report | Preparation of a detailed case report. |
Should the situation remain unresolved, the pathway to Phase Three is paved, where litigation becomes a potential recourse.
Phase Three
Upon reaching Phase Three, the path forward becomes clear. If the investigation suggests a low likelihood of recovery, we advise case closure, incurring no cost to you. Conversely, should litigation be the recommended route, a decision is required on your part.
Choosing not to litigate allows for claim withdrawal or continued standard collection efforts, free of any legal fees. Opting for litigation necessitates upfront costs, typically between $600 to $700, covering court and filing fees. These fees empower our affiliated attorney to pursue all owed monies.
Should litigation prove unsuccessful, rest assured, no further fees will be owed to our firm or the attorney.
The decision to litigate is significant, with potential costs and benefits. It is essential to weigh these factors carefully before proceeding. Below is a summary of the potential upfront legal costs:
| Jurisdiction | Estimated Upfront Costs |
|---|---|
| Debtor’s Local | $600 – $700 |
Remember, the choice to pursue legal action is yours, and our team is here to support you through each step of the recovery process.
Rates for Debt Collection
Rates for 1 through 9 Claims
When dealing with overdue payments in the USA-Brazil renewable energy trade, the collection rates are critical for maintaining financial stability. For 1 through 9 claims, the rates are structured to incentivize swift recovery while balancing the costs involved in the collection process.
For accounts that are less than a year old, the rate is set at 30% of the amount collected. This rate increases to 40% for accounts that have aged beyond a year, reflecting the additional effort required to collect on older debts. Notably, for accounts valued under $1000.00 or those that necessitate legal intervention, the rate is 50% of the amount collected.
The goal is to ensure a fair compensation for the collection efforts while also providing a clear and predictable cost structure for businesses.
Here’s a quick breakdown of the rates:
- Accounts under 1 year: 30% of the amount collected
- Accounts over 1 year: 40% of the amount collected
- Accounts under $1000.00: 50% of the amount collected
- Accounts requiring an attorney: 50% of the amount collected
These rates are designed to align with the complexity and age of the claim, ensuring that businesses can anticipate the costs associated with recovering their funds.
Rates for 10 or More Claims
When handling a higher volume of claims, economies of scale come into play. Bulk submissions result in reduced rates, offering significant savings for your company. For 10 or more claims, the rates are adjusted as follows:
- Accounts under 1 year in age: 27% of the amount collected.
- Accounts over 1 year in age: 35% of the amount collected.
- Accounts under $1000.00: 40% of the amount collected.
- Accounts placed with an attorney: 50% of the amount collected.
These rates reflect our commitment to providing value while maintaining the quality of our recovery services. It’s a balance of efficiency and effectiveness, ensuring that your overdue payments are pursued with the utmost diligence.
The more claims you submit, the more you save. It’s a straightforward approach to incentivize bulk claim submissions and streamline the collection process.
Remember, the goal is to recover what’s owed to you with minimal additional expenditure. Our tiered pricing structure is designed to align our interests with yours, making us partners in the recovery effort.
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 recommendations for closure or litigation, with associated costs and outcomes.
What are the rates for debt collection for 1 through 9 claims?
For 1 through 9 claims, the rates are as follows: Accounts under 1 year in age – 30% of the amount collected, Accounts over 1 year in age – 40% of the amount collected, Accounts under $1000.00 – 50% of the amount collected, Accounts placed with an attorney – 50% of the amount collected.
What are the rates for debt collection for 10 or more claims?
For 10 or more claims, the rates are as follows: Accounts under 1 year in age – 27% of the amount collected, Accounts over 1 year in age – 35% of the amount collected, Accounts under $1000.00 – 40% of the amount collected, Accounts placed with an attorney – 50% of the amount collected.
What happens in Phase Three of the Recovery System for Company Funds?
In Phase Three, there are two possible outcomes: recommendation for case closure if recovery is unlikely, with no fees owed, or recommendation for litigation. If litigation is chosen, upfront legal costs are required. If litigation fails, no fees are owed.
What actions are taken in Phase One of the Recovery System for Company Funds?
Phase One involves sending letters to debtors, skip-tracing, contacting debtors for resolution, and daily attempts to resolve accounts within the first 30 to 60 days. If unsuccessful, the case proceeds to Phase Two.
What actions are taken in Phase Two of the Recovery System for Company Funds?
Phase Two involves forwarding the case to affiliated attorneys for legal action. Attorneys draft letters demanding payment, attempt to contact debtors, and provide recommendations for further steps if resolution is not reached.
