In the world of contract research services, ensuring timely payment is crucial for the success and sustainability of any business. To achieve this goal, having a robust recovery system for company funds is essential. Let’s explore the three phases of a comprehensive recovery system designed to recover company funds efficiently and effectively.
Key Takeaways
- Implementing a structured recovery system can significantly increase the chances of timely payment for contract research services.
- Phase One involves initial contact with debtors, skip-tracing, and attempting to resolve the matter through various communication channels.
- Phase Two escalates the recovery process by involving affiliated attorneys to demand payment and negotiate with debtors.
- Phase Three presents options for further action, including litigation if necessary, with clear guidelines on costs and potential outcomes.
- Understanding the rates and fees associated with the recovery system is crucial for making informed decisions on pursuing legal action or continuing standard collection activities.
Recovery System for Company Funds
Phase One
Within the first 24 hours of initiating Phase One, a multi-pronged approach is deployed to secure payment. Immediate action is taken to ensure that the debtor is aware of the outstanding balance and the urgency of resolution. The steps include:
- Sending the initial demand letter via US Mail.
- Conducting skip-tracing and investigations to gather optimal financial and contact information.
- Engaging in persistent communication efforts, including phone calls, emails, text messages, and faxes.
Daily attempts are made to reach a settlement within the first 30 to 60 days. In the event of non-resolution, the process seamlessly transitions to Phase Two, involving our network of affiliated attorneys.
The effectiveness of Phase One hinges on the immediacy and consistency of these actions, setting the stage for a robust recovery system.
Phase Two
Upon escalation to Phase Two, the focus shifts to legal leverage. An affiliated attorney within the debtor’s jurisdiction takes over, wielding the weight of law firm letterhead to demand payment. The attorney’s actions include:
- Drafting and sending a series of authoritative letters to the debtor.
- Persistent attempts to contact the debtor via phone, reinforcing the urgency of payment.
If these intensified efforts do not yield results, a detailed report is prepared for the client. This report outlines the challenges encountered and suggests actionable steps forward.
Should Phase Two fail to secure payment, the path is paved for the decisive Phase Three. The client is then presented with a clear choice: pursue litigation with associated costs or opt for continued standard collection activities.
Phase Three
Upon reaching Phase Three, the path forward becomes clear. If the investigation suggests a low likelihood of fund recovery, we advise case closure—no fees incurred. Conversely, should litigation be the recommended route, a decision point arises.
For those opting out of legal action, withdrawal is an option, free of any financial obligation to our firm. Alternatively, standard collection efforts can persist. Choosing litigation necessitates upfront legal costs, typically between $600 to $700, based on the debtor’s location. These costs cover court fees and filing expenses, initiating a lawsuit to reclaim the full amount due.
Should litigation prove unsuccessful, rest assured, no further fees will be owed to our firm or our affiliated attorney.
Our fee structure is competitive and scales with the volume of claims. Here’s a succinct breakdown:
| Claims Count | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
The rates are contingent on the age of the account, the amount collected, and whether an attorney is involved. The goal is to align our success with your recovery, ensuring a mutually beneficial outcome.
Recovery System for Company Funds
What is Phase One of the Recovery System for Company Funds?
Phase One involves sending letters to debtors, skip-tracing, investigating debtor information, and attempting to contact debtors for resolution.
What happens if all attempts to resolve the account fail in Phase One?
If all attempts fail, the case is forwarded to one of the affiliated attorneys within the debtor’s jurisdiction in Phase Two.
What is Phase Two of the Recovery System for Company Funds?
Phase Two involves the attorney drafting letters demanding payment, contacting the debtor, and recommending the next steps if resolution fails.
What are the options in Phase Three if recovery is not likely?
In Phase Three, if recovery is not likely, the case may be closed with no payment owed. If litigation is recommended, the client can choose to proceed or withdraw the claim.
What are the upfront legal costs if litigation is recommended in Phase Three?
The client is required to pay upfront legal costs such as court fees, filing fees, etc., typically ranging from $600.00 to $700.00.
What are the collection rates for accounts in Phase Three?
The collection rates vary based on the number of claims submitted and the age and amount of the accounts, ranging from 27% to 50% of the amount collected.
