In the USA-South Korea steel industry trade, the recovery of debts is a crucial process that involves multiple phases and legal actions. This article provides an overview of the recovery process, legal action recommendations, and collection rates in this trade relationship.
Key Takeaways
- The recovery process includes three phases: Phase One involves initial contact and investigation, Phase Two escalates to legal action, and Phase Three offers recommendations for closure or litigation.
- Legal action recommendations include the closure of the case if recovery is unlikely and proceeding with litigation if necessary.
- Collection rates vary based on the number of claims and the age of accounts, with different rates for 1-9 claims and 10+ claims.
- Clients have the option to proceed with legal action, with upfront legal costs ranging from $600.00 to $700.00, and competitive collection rates tailored to the number of claims.
- Effective communication and thorough investigation are key components of the recovery system to recover company funds in the USA-South Korea steel industry trade.
Recovery Process Overview
Phase One
In the steel industry trade between the USA and South Korea, we initiate our debt recovery with a swift and structured approach. Within 24 hours of receiving a case, we launch Phase One. Our team springs into action, dispatching the first of four letters to the debtor and employing skip-tracing to gather essential financial and contact information.
We’re relentless in our pursuit, with our collector making daily attempts to reach a resolution through various communication channels. If these efforts don’t yield results within the first 30 to 60 days, we’re prepared to escalate to Phase Two.
Our commitment is clear: we strive for resolution in Phase One, setting the stage for more decisive action if necessary.
Phase Two
As we escalate our efforts in Phase Two, we’ve handed your case to a local attorney within our network. Immediate action is taken to assert pressure on the debtor. Here’s what unfolds:
- A series of demanding letters, drafted on the attorney’s letterhead, are dispatched to the debtor.
- Concurrently, the attorney’s team initiates phone calls to reinforce the urgency of the situation.
Despite these intensified efforts, some cases remain unresolved. If this happens, we prepare a detailed report outlining the challenges and our suggested course of action.
Should we reach an impasse, we stand ready to discuss the potential of Phase Three, ensuring you’re informed every step of the way.
Phase Three
At the crossroads of Phase Three, we face a critical decision. Our recommendation hinges on the debtor’s financial landscape and the feasibility of recovery. If prospects are dim, we advise closure of the case, absolving you of any fees to us or our affiliated attorneys.
Should litigation seem viable, the choice is yours. Opt out, and you’re free of financial obligations to our team. Choose to proceed, and upfront legal costs await—typically between $600 to $700. These cover court expenses and filing fees, initiating a lawsuit to reclaim what’s owed, including filing costs.
Upon successful litigation, the debt is yours, less our agreed percentage. If we fail, the case closes, and you owe us nothing.
Our commitment to transparency extends to our fee structure, which adjusts based on the number of claims. Here’s a snapshot:
| Claims | Rate |
|---|---|
| 1-9 | 30%-50% |
| 10+ | 27%-50% |
Legal Action Recommendations
Closure of Case
When we’ve exhausted all avenues and the likelihood of debt recovery is slim, we take a decisive step: closure of the case. This means no further action is pursued, and importantly, you owe us nothing—neither to our firm nor our affiliated attorneys.
In cases where the debtor’s assets are insufficient or unattainable, we recommend this route. It’s a tough call, but a necessary one to avoid sinking more resources into a fruitless endeavor. Here’s what happens next:
- We conduct a final review of the debtor’s situation.
- You receive a comprehensive report detailing why further efforts are unwarranted.
- The claim is officially withdrawn, and all collection activities cease.
We ensure transparency throughout the process, providing you with all the information needed to make an informed decision.
Should you choose to continue with standard collection activities, we remain at your disposal for calls, emails, and other persuasive measures. The goal is always clear: to recover what’s rightfully yours, without incurring unnecessary costs.
Proceeding with Litigation
When we decide to take the legal route, we’re committing to a more aggressive stance. We must be prepared for the associated costs and the potential for a protracted legal battle. Upfront legal costs, including court and filing fees, typically range from $600 to $700. These are necessary to initiate the lawsuit and cover all monies owed.
Litigation is a serious step, and we proceed only when we believe the chances of recovery justify the investment. If the litigation is unsuccessful, rest assured, you owe nothing further to our firm or our affiliated attorney.
We stand by our commitment to a cost-effective recovery process. Our competitive rates ensure that you retain the majority of the recovered funds.
Here’s a quick overview of our collection rates:
-
For 1-9 claims:
- Accounts under 1 year: 30%
- Accounts over 1 year: 40%
- Accounts under $1000: 50%
- Accounts placed with an attorney: 50%
-
For 10+ claims:
- Accounts under 1 year: 27%
- Accounts over 1 year: 35%
- Accounts under $1000: 40%
- Accounts placed with an attorney: 50%
Collection Rates
Rates for 1-9 Claims
When we tackle fewer than ten claims, our rates reflect the intensity of our individualized approach. For accounts less than a year old, we charge 30% of the amount collected. As time ticks on, older accounts over a year incur a 40% fee, recognizing the additional effort required.
For smaller balances under $1000, or when legal muscle is flexed and accounts are placed with an attorney, the rate stands at 50%. This ensures that our commitment to your recovery process is unwavering, regardless of the claim’s size or complexity.
Our competitive rates are designed to align with your success – the more we recover, the more we both benefit.
Here’s a quick breakdown:
- Accounts under 1 year: 30%
- Accounts over 1 year: 40%
- Accounts under $1000: 50%
- Accounts with an attorney: 50%
Remember, these rates are tailored to ensure that your recovery is maximized while our services remain economically viable.
Rates for 10+ Claims
When handling 10 or more claims, we’ve structured our rates to be more favorable, reflecting the bulk nature of the transactions. The more claims you submit, the more cost-effective our services become.
For accounts less than a year old, the rate is 27% of the amount collected. Older accounts, over a year, are charged at 35%. Smaller debts, those under $1000, have a rate of 40%, and any accounts requiring legal action are at a fixed rate of 50%.
| Age of Account | Rate |
|---|---|
| Under 1 year | 27% |
| Over 1 year | 35% |
| Under $1000 | 40% |
| Legal Action | 50% |
We strive to ensure that our collection rates are competitive and transparent, providing you with clear expectations for the financial aspect of debt recovery.
Remember, these rates are part of our commitment to offer you a tailored service that maximizes your recovery while minimizing costs. It’s our way of ensuring that your business can continue to thrive, even in the face of outstanding debts.
Frequently Asked Questions
What happens if the possibility of debt recovery is not likely in Phase Three?
If the possibility of debt recovery is not likely in Phase Three, we will recommend closure of the case and you will owe nothing to our firm or affiliated attorney.
What are the options if litigation is recommended in Phase Three?
If litigation is recommended in Phase Three, you have the option to proceed with legal action by paying upfront legal costs or to withdraw the claim with no obligation to pay our firm or affiliated attorney.
What are the collection rates for 1-9 claims?
For 1-9 claims, the collection rates vary based on the age of the accounts and the amount collected, ranging from 30% to 50%.
What are the collection rates for 10+ claims?
For 10+ claims, the collection rates vary based on the age of the accounts and the amount collected, ranging from 27% to 50%.
What is the process in Phase One of the recovery system?
Phase One includes sending letters to debtors, skip-tracing, contacting debtors, and attempting to resolve accounts within the first 30 to 60 days. If unsuccessful, the case moves to Phase Two.
What is the process in Phase Two of the recovery system?
In Phase Two, the case is forwarded to an affiliated attorney who sends demand letters, contacts debtors, and if unresolved, provides recommendations for the final step.
