FREQUENTLY ASKED QUESTIONS (FAQs)
Why shouldn’t we use a debt collection agency to collect our past due accounts receivable?
Collection agencies usually don’t have attorneys on their staff to handle matters when traditional debt collection methods are unsuccessful. They must refer your claim to an outside attorney, which wastes your time and creates logistical problems. Our firm is a “one-stop” solution to your debt problem. There is no need to refer out any of the collection steps, because we handle your account from start to finish.
Collection agencies also often claim that hiring an attorney to collect a debt can cost hundreds of dollars per hour, but our firm is different from hourly fee-based attorneys in that we don’t charge you anything if we don’t collect your debt. Not to mention that collection agencies charge you more for older debts – we don’t.
What do you charge?
Our work is performed on a contingent fee basis. You pay nothing if we can’t recover your debt. When we are able to collect money, you pay a reasonable fee that is based on the amount of work involved. Unlike most collection agencies, we do not charge more for older debts. Click here to see our fee structure.
Are there any up front fees or charges?
There are no up front fees, charges, or retainers - and unlike many collection agencies, we don’t ask for court costs or litigation expenses up front.
Will we have any out-of-pocket expenses if a lawsuit is filed?
We pay all court costs and expenses incurred during the collection process. These will be deducted from the payout after the fee percentage is computed on the recovery. If no recovery is made, you will not owe any court costs or expenses.
Is there a statute of limitations on collecting old debts or enforcing judgments?
Yes, and every state has a different time frame. Past due accounts receivable are treated like breach of contract cases, which have a 4-year statute of limitations in Texas. We accept accounts up to the age of the statute of limitations, and we will be happy to review your accounts before placement to determine the applicable time frame.
All states limit enforcement of judgments to within a certain number of years from the date of judgment – in Texas, a creditor has 10 years to enforce its judgment. However, judgments can be renewed periodically to extend the amount of time the judgment can be enforced.
Do we have to sign a contract?
Yes, all our clients must sign a contract detailing the terms of the services we provide. This ensures that we are “on the same page” with respect to fees, terms, and expectations of both parties.
What geographic areas do you service?
Although our offices are in Texas, we are able to collect debts throughout the United States and internationally.
Do you require a certain number of accounts to be placed?
We have no minimum requirement of accounts per client. We will accept any number of claims and have capacity to handle entire accounts receivable portfolios.
Can we place any type of account with you?
We only accept accounts where (1) the claimed indebtedness is fully supported by valid documentation, (2) the debtor has not filed bankruptcy, and (3) the contract or agreement does not mandate mediation or arbitration. Virtually all accounts receivable meet these guidelines, and we will be happy to review any contracts at issue before placement to make sure mediation or arbitration is not mandatory.
Is there a limit on the dollar amount placed for collection?
Each individual account placed for collection must be at least $500.00, but if the total amount of all accounts placed with us is significant, we are more willing to accept accounts lower than $500.00.
Is there any guarantee that you will be successful in recovering money for us?
Unfortunately, we are unable to guarantee success. Sometimes the debtor has no assets to seize or they have hidden their assets and effectively shielded themselves from liability. However, we have established a solid track record with our clients, and we don’t get paid unless we collect for you – so you have nothing to lose in placing accounts with us.
How long does it take to collect debts?
The collection process can take anywhere from a few days to a few years – that is simply the nature of the process. Sometimes debtors are very responsive and sometimes it requires litigation for them to respond. However long it takes and however much effort is involved, you can rest assured that we will work every account you place with us until it is resolved.
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