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Recovering Payments for Agricultural Exports to Brazil

In the process of recovering payments for agricultural exports to Brazil, it is crucial to have a systematic approach to reclaim company funds. This article outlines a three-phase Recovery System designed to assist companies in the recovery process. Each phase addresses specific aspects of the recovery process, from initial actions to legal involvement and decision making. The system aims to provide clarity and guidance for companies navigating the complex landscape of payment recovery in the agricultural export industry.

Key Takeaways

  • The Recovery System for Company Funds involves three distinct phases: Initial Recovery Process, Legal Action and Attorney Involvement, and Recommendations and Decision Making.
  • Phase One includes sending letters to debtors, skip-tracing, and attempting to resolve the matter through various communication methods.
  • Phase Two involves forwarding the case to affiliated attorneys, drafting demand letters, and contacting debtors for resolution.
  • Phase Three offers two recommendations: closure of the case if recovery is unlikely, or proceeding with litigation with associated costs and rates.
  • The Recovery System provides clear guidelines for companies to navigate the recovery process, including potential costs and rates for legal action.

Recovery System for Company Funds

Phase One: Initial Recovery Process

Upon initiating the recovery process, swift action is taken to assert the company’s claim. Within 24 hours of account placement, a series of strategic steps are deployed:

  • A letter is dispatched to the debtor via US Mail.
  • Comprehensive skip-tracing and investigation are conducted to secure optimal financial and contact data.
  • Persistent contact efforts commence, utilizing phone calls, emails, text messages, and faxes.

Daily attempts to engage with the debtor span the first 30 to 60 days, aiming for an expedient resolution. In the event of non-compliance, the case escalates to Phase Two, involving legal counsel within the debtor’s locale.

Phase Two: Legal Action and Attorney Involvement

Upon escalating to legal action, the case is handed to a local attorney within our network. Immediate drafting of demand letters on law firm letterhead signals serious intent. Persistent contact attempts via phone supplement the written demands. If these efforts falter, a critical juncture is reached.

The decision to litigate is pivotal. Weighing the debtor’s assets against potential recovery is crucial. If litigation is advised, upfront legal costs are necessary. These typically range from $600 to $700, depending on jurisdiction.

A breakdown of our rates is as follows:

  • For 1-9 claims:
    • Accounts under 1 year: 30%
    • Accounts over 1 year: 40%
    • Accounts under $1000: 50%
    • Accounts with attorney: 50%
  • For 10+ claims:
    • Accounts under 1 year: 27%
    • Accounts over 1 year: 35%
    • Accounts under $1000: 40%
    • Accounts with attorney: 50%

Closure of the case is the alternative if recovery is deemed unlikely. This decision is made with no additional cost to you. The choice to proceed or not rests solely in your hands.

Phase Three: Recommendations and Decision Making

Upon reaching Phase Three, the path forward becomes clear. Decisive action is based on comprehensive case analysis and debtor’s financial assessment. If recovery seems unlikely, we advise case closure, incurring no cost to you. Conversely, choosing litigation necessitates upfront legal fees, typically $600-$700, subject to the debtor’s location.

Our firm’s commitment: No recovery, no fees. Your financial risk is minimized.

Our fee structure is straightforward. For 1-9 claims, rates vary from 30% to 50% of the amount collected, depending on the claim’s age and value. For 10 or more claims, the rates are slightly reduced. Here’s a quick breakdown:

  • Accounts under 1 year: 30% (1-9 claims) or 27% (10+ claims)
  • Accounts over 1 year: 40% (1-9 claims) or 35% (10+ claims)
  • Accounts under $1000.00: 50% regardless of the number of claims
  • Accounts placed with an attorney: 50% consistently

In summary, your decision to proceed with legal action or standard collection activities will be informed by our expert analysis and transparent fee structure.

Frequently Asked Questions

What is the Recovery System for Company Funds?

The Recovery System for Company Funds is a 3-phase process designed to recover funds owed to your company from debtors. It involves initial recovery processes, legal action, and recommendations for decision making.

What happens in Phase One of the Recovery System?

Phase One involves sending letters to debtors, skip-tracing and investigation, contacting debtors for resolution, and making daily attempts to resolve the account. If all attempts fail, the case moves to Phase Two.

What is involved in Phase Two of the Recovery System?

Phase Two includes forwarding the case to an affiliated attorney, drafting demand letters to the debtor, contacting the debtor via phone calls, and explaining the issues surrounding the case to the client.

What are the recommendations in Phase Three of the Recovery System?

In Phase Three, the recommendations will be either to close the case if recovery is not likely, or to proceed with litigation. If litigation is recommended, the client has the option to proceed with legal action or to continue standard collection activity.

What are the upfront legal costs if the client decides to proceed with legal action?

If the client decides to proceed with legal action, they will be required to pay upfront legal costs such as court costs, filing fees, etc. These fees typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction.

What are the collection rates for accounts under the Recovery System?

The collection rates depend on the number of claims submitted within the first week of placing the first account. Rates vary based on the age and amount of the accounts, and whether they are placed with an attorney.


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