In the automotive trade between the USA and South Korea, handling unpaid invoices is a critical aspect of business operations. To address this issue, a comprehensive Recovery System for Unpaid Invoices has been established, consisting of three distinct phases. Each phase plays a crucial role in the process of recovering company funds and resolving outstanding debts. This article explores the Recovery System and its key takeaways to provide valuable insights for businesses engaged in automotive trade between the USA and South Korea.
Key Takeaways
- The Recovery System for Unpaid Invoices consists of three phases: Initial Recovery Process, Legal Action and Recommendations, and Decision Making and Rates.
- Phase One involves sending letters to debtors, skip-tracing, and daily attempts to contact debtors for resolution.
- Phase Two includes forwarding the case to affiliated attorneys, drafting demand letters, and pursuing legal action if necessary.
- In Phase Three, the recommendation may involve case closure or proceeding with litigation, with associated upfront legal costs.
- Competitive collection rates are tailored based on the number of claims submitted and the age of the accounts, with varying percentages based on the amount collected.
Recovery System for Unpaid Invoices
Phase One: Initial Recovery Process
Upon initiating Phase One, we spring into action. Within 24 hours, our team dispatches the first of four letters to the debtor via US Mail. We don’t stop there; we delve deep, skip-tracing and investigating to secure the most accurate financial and contact details.
Our collectors are relentless, employing a barrage of phone calls, emails, text messages, and faxes to reach a resolution. Daily attempts are made for the first 30 to 60 days, ensuring no stone is left unturned.
In the event of non-resolution, we seamlessly transition to Phase Two, engaging our network of attorneys to escalate the matter legally.
Persistence is key in this phase. Here’s a snapshot of our initial recovery efforts:
- First contact letter sent immediately
- Comprehensive debtor investigation
- Persistent communication attempts
Should these efforts not yield the desired results, we’re prepared to take the next step. Our commitment is to your financial recovery, and we will guide you through every phase with precision and dedication.
Phase Two: Legal Action and Recommendations
When diplomacy fails, we escalate. Our network of attorneys steps in, wielding the power of the law. Immediate action is critical; a letter from a law firm can be a potent catalyst for settlement. If the debtor remains unresponsive, we’re faced with a choice: to litigate or not.
Litigation is not a step to be taken lightly. It comes with upfront costs, typically ranging from $600 to $700, depending on jurisdiction. These costs cover court fees, filing fees, and the like. Should you choose to proceed, our attorney will aggressively pursue all owed monies.
We stand by you, ready to navigate the complexities of legal action. Our guidance is clear and our resolve, unwavering.
If litigation proves unsuccessful, the case closes, and you owe us nothing further. It’s a no-win, no-fee assurance that aligns our interests with yours.
Here’s a snapshot of our rates for legal action:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Remember, these rates are contingent on the amount collected. We’re committed to a fair and transparent process, ensuring you’re informed every step of the way.
Phase Three: Decision Making and Rates
At this juncture, we face a critical choice. Our recommendation hinges on the debtor’s asset investigation and case facts. If recovery seems unlikely, we advise case closure at no cost to you. Conversely, should litigation appear viable, you’re at a crossroads.
Deciding against legal action means you can withdraw the claim without owing us. Alternatively, we can persist with standard collection efforts. Opting for litigation necessitates upfront legal fees, typically between $600 to $700. These cover court costs and filing fees, and upon payment, our attorney initiates the lawsuit for the full debt amount, including filing costs.
Should our litigation efforts not yield results, the case concludes, and you owe us nothing further.
Our rates are competitive and vary based on claim volume and age. Here’s a concise breakdown:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Remember, these rates apply to the amount collected, ensuring our goals align with your recovery success.
Frequently Asked Questions
What is the recovery system for unpaid invoices?
The recovery system for unpaid invoices consists of three phases: Phase One involves initial recovery processes, Phase Two involves legal action and recommendations, and Phase Three involves decision making and rates.
What happens during Phase One of the recovery system?
During Phase One, the debtor is contacted through letters, skip-tracing, and investigations to obtain financial and contact information. Our collector will attempt to contact the debtor and resolve the matter using various communication methods. If all attempts fail, the case proceeds to Phase Two.
What is involved in Phase Two of the recovery system?
Phase Two involves forwarding the case to an affiliated attorney within the debtor’s jurisdiction. The attorney will draft letters demanding payment, and attempts will be made to contact the debtor. If no resolution is reached, recommendations for the next step will be provided.
What are the recommendations in Phase Three of the recovery system?
In Phase Three, if recovery is unlikely, closure of the case may be recommended with no owed fees. If litigation is recommended, the client can choose to proceed with legal action, paying upfront legal costs. Rates for collection activities are also provided.
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 unpaid invoices?
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.
