FAQ'S: Frequently Asked Questions

  1.   How do I assign an account for collection?

    Answer:  

    If you are an existing client, just fax us the relevant documents. We take it from there.

    If you are an new client, fill out the Assignment Form (click for link), email it and we will respond with a fee proposal. If agreeable, we will send you the fee agreement. You return the agreement with the relevant documents to us. We take it from there.

    If you have a Judgment already, fax us a copy of the Judgment and any information you have regarding the debtor's residence, work, telephone numbers or other information that we can use to locate him/her.

  2. What happens if the debtor will not pay voluntarily?

    Answer:  

    If the debt is less than $500, we report it to the credit bureau. At some point, if the debtor seeks credit, this entry will show up prompting them to pay in many instances.

    If the debt is between $500 and $5,000, we generally recommend that you obtain a Small Claims Judgment against the debtor and then turn that over to us for further collection. We are not allowed to appear in Small Claims court on your behalf so a knowledgeable person from your office must make the actual appearance and present your billing documents to the court.

    If the debt exceeds $5,000, we recommend filing a Superior Court lawsuit.

    Note:

    We only recommend Small Claims or a lawsuit where either (1) we can verfy employment or assets prior to filing suit, or, (2) where the amount justifies the lawsuit and there is a reasonable possibility that we may find the person in the future. Ultimately, the decision is yours.

  3. What happens if you cannot locate the debtor?

    Answer:  

    Depending on the circumstances, we will either report the debt to the credit bureau, or, will recommend that you proceed with a lawsuit taking it to Judgment so that you have a chance of collecting in the future. If reported to the credit bureau, we are periodically notified of inquiries regarding the debtor and may reactivate the account with the newly acquired information.

  4. Is there a time limit for me to sue the debtor?

    Answer:  

    Yes. It is the applicable Statute of Limitations. As a general rule, if you have a written contract signed by the debtor, the Statute of Limitations is four years from the date of breach or last payment. If you only have a verbal contract, the Statute is only two years. You must sue within that time or you may be barred from recovery.

    Note: This site is NOT intended to give legal advice. Statutes of Limitation are complicated and have many rules and exceptions. You need to discuss the applicable rules with your attorney.

  5. How long is a Judgment good for?

    Answer:  

    Judgments are valid for 10 years and are renewable every 10 years. They bear interest at 10% per year.

  6. How long will the debt stay on the person's credit report?

    Answer:  

    7 years

  7. What happens if the debtor files bankruptcy?

    Answer:  

    A Chapter 7 wipes out the debt entirely. A Chapter 13 means there is a possibility that you will receive some pennies on the dollar.

  8. What happens if the debtor pays me directly after I have assigned it to you?

    Answer:  

    You are still responsible for the commissions to us. If you receive a direct payment, please report it immediately to us so we can update our records, the interest, and insure that we do not continue to send out collection notices (if paid in full) or that the notices we do send are accurate.