What Most People Do Not Know About Hiring A Debt Collection Attorney

Debt collection attorneys will act to recover outstanding debts on your behalf, working as part of an agency or independently.

What they do

The agency will normally seek to recover payment by letters and telephone calls, attempt to locate the debtor through computer software and private investigators if necessary, and research the debtor’s assets, such as bank and brokerage accounts. If they are unsuccessful and determine that a court action might result in successful recovery, they will usually refer the case to an attorney.

Attorneys

Attorneys are not normally licensed to appear before courts in more than one state, so it is normal to refer the case to an attorney in the county or city where the attorney is located. The attorney will then file the relevant lawsuit for recovery of the debt.

Fees

Most collection agencies operate on a contingency fee basis, where they won’t get paid if they fail to recover the debt, and will take a percentage of it if they do. The Attorney will also normally handle the law suit on a contingency fee basis, but he may be entitled to a suit fee which may be wholly contingent, partially contingent or non-contingent.

How to find a Debt Collection Attorney

One way to locate competent attorneys for debt collection is through Law Lists. These list attorneys interested in and competent to handle debt collection. If a referral is made this way, cases are protected against misappropriation or theft of funds by a one million dollar fidelity bond.