ABQ_wht
FREE CONSULTATION

HOME

  • Deficiency Balances
  • Commercial Collections
  • Consumer Collections
  • Accounts Receivable
  • Dormant Judgments
  • Collection Questionnaire

Alternate Dispute Resolution

  • Mediation
  • Arbitration

Mentorship

COLLECTION Frequently Asked Questions (FAQ)

What is the expectation for success?
Success depends on many things but the most important issues are whether you know where the debtor is located and where the debtor is employed. Our extensive experience has proven that these are the main factors to consider. Since we collect on a contingency basis it is important to file suit only on those cases determined to be “collectable”, therefore, suit is usually filed only against individuals that are employed and subject to garnishment or have significant other assets to justify enforcing a judgment. We do not generally advise the expense of litigation unless these factors are determined prior to suit. Furthermore, our state of the art software and database capabilities as well as our highly trained and experienced collectors and paralegals increase our success.

Note: It is clear that a lower probability of collection occurs in cases that are old, against corporations that are out of business, against those in jail or who are being pursued by law enforcement, against those who have or will be filing for bankruptcy protection, against those with excessive personal debts and no assets, and against those with large IRS or State tax liens. We cannot pre-determine which debtors fall into any of these categories.  This creates obvious problems predicting the expectation for success in any particular case.

How soon can you collect for me?
Some cases are collected within the first 30 days by settlement and others are never collected. There does not seem to be any way of correctly predicting or giving a general rule, but we know that litigation usually means a 180 day delay before garnishment produces any results.  Also, it may take several weeks or even months to locate the debtor and his place of employment before suit can begin.  In the meantime we make demands and invitations by letter to contact our office and settle the matter.  A demand (which we refer to as a “claim letter”) is sent immediately after the file is set up in our computer system.  Most debtors are accustomed to receiving demands but a letter from an attorney is received generally as more important, therefore, we do receive calls and contacts after a claim letter is sent.

Will you compromise (or settle) my claim?
Settlements are the fastest and most efficient way to settle your claim, therefore, we first use our best efforts to get all of your money but if that is not realistic we encourage reasonable settlements by lump sum or on terms. 

Do you take payments?
We always demand immediate payment in full. Frequently the threat of litigation or the filing of proceedings with the court gets the debtor to pay immediately. However, in some circumstances payments may be the only way to collect any of your money. If it becomes apparent that a debtor must make payments, or that we can get your money faster with voluntary payments than by waiting to fight in court, we will recommend a structure for the recovery of your money.  Payment plans are designed to get you paid without encouraging a bankruptcy.  A settlement agreement will also allow for the right to continue collection by legal means since a default of the agreement is a stipulation to the terms therein and a new basis for liability.

What are my out-of-pocket costs?
On most contingent fee cases when suit is recommended we pay court costs up front and bill you for those costs monthly in a consolidated accounting. For example, costs may include the filing fee with the clerk of the court, fees to the process server, filing fees and/or service fees required to issue and deliver writs such as garnishment or execution.  Any other costs will require your prior approval.

What personal involvement will I have?
When we get a new file, we immediately conduct an initial investigation and open your file in our proprietary collection software system. As an integral part of that process, we may need to interview you on the phone for relevant facts, information, ideas, and tactics. We try to develop a feeling for who our target is and what the best method will be to attempt collection. We typically don't require a face-to-face meeting with our clients as there is no need, therefore, you will not be requested to visit our office or travel. Of course if you wish to meet us face-to- face, we are pleased to meet with you at your convenience.  In this day of internet technology, fax machines, Email, and the like, face-to-face meetings are not common.

How do you disburse proceeds from my collections?
All money collected is deposited into a trust account. After we are certain that the debtor's payment has cleared, the money is disbursed – simultaneously to you and to the firm - in the first week of the month following receipt of the funds. Since we don't get paid on contingent fee cases until you do, we are anxious to clear the funds and disburse promptly. All of your funds are fully insured and held in FDIC designated beneficiary accounts.

What if you can't collect for me?
We always demand immediate payment in full. Frequently the threat of litigation or the filing of proceedings with the court gets the debtor to pay immediately. However, in some circumstances payments may be the only way to collect any of your money. If it becomes apparent that a debtor must make payments, or that we can get your money faster with voluntary payments than by waiting to fight in court, we will recommend a structure for the recovery of your money.  Payment plans are designed to get you paid without encouraging a bankruptcy.  A settlement agreement will also allow for the right to continue collection by legal means since a default of the agreement is a stipulation to the terms therein and a new basis for liability.

 

contact

6001 Whiteman Drive NW
Albuquerque, NM 87120


Phone: 505-COLLECT
or 505-898-6311
Toll Free: 888-526-6311
Fax: 505-898-7313

contact US

 

The purpose of this Web Site is to enhance the legal services that we provide to our clientele and to provide answers to commonly asked questions. We have provided a number of resources here for your use. Nothing contained in this site should be construed as legal advice or as creating an attorney-client or business relationship. Please see our Disclaimer.