How Hiring an Attorney Can Help You Collect Debts You Are Owed

December 16, 2022

What Can a Debt Lawyer Do for You?

Trying to claim money that you are rightfully owed from a non-paying client or clients can be a stressful situation. When gentle reminders, updated invoices, and demands do not work, it may be time for you to escalate things. Hiring a debt collections attorney can ease your mind as they figure out the best legal strategies for getting your money while managing paperwork and courtroom proceedings.

When Should You Hire A Debt Lawyer?

Knowing when to hire a debt collections lawyer can be tricky. Here are some key points to consider when deciding if it is time for legal help:

If you are banking on a legal judgment as a necessity in resolving the issue, then you may want a legal professional representing you in the courtroom. Although self-representation is possible, it is probably best to let the experts handle it.
If polite prompting and repeated invoices have failed, legal documents demanding payment may serve as an impetus for a debtor to make timely, incremental payments of a determined amount to avoid actual legal action.
If the cost of legal representation pales in comparison to the amount of debt owed, hiring an attorney is probably worth your while. Legal action is typically recommended if the debt amount exceeds $5,000.
If you are owed money by a large company, it could be difficult to recover that debt. They likely have a team of attorneys on retainer to help them avoid attempts to collect. A good debt lawyer can head off legal loopholes large companies may use to delay or evade making payments.

How Much Will a Debt Lawyer Cost?

Well, there is no concrete figure as attorneys have varying rates and billing methods. Some attorneys charge hourly while others have a flat rate or take a percentage of a settlement. Let’s take a look at some typical fee structures you can expect:

Some attorneys charge by the hour, half-hour, or quarter-hour with common hourly charges ranging between $200 and $400.
Some attorneys charge a flat or fixed fee depending on the case. Typically, flat fees are reserved for routine cases that are resolved without much effort.
Some attorneys — particularly in debt settlement cases — will charge a contingency fee, meaning they receive a percentage of the awarded amount.
Some attorneys may refer you to another lawyer and ask for part of your case’s total fee, which is not always entirely appropriate. Referral fees could be forbidden in certain states unless specific guidelines are met.

When Should You Contact a Debt Lawyer?

If someone owes you or your company money, and you have failed to recoup what you are owed via reminders, additional invoices, and warnings of legal action, your only remaining recourse is to hire an attorney. Contact the team at Stone Canyon Law for expert legal counsel on debt collection. Their in-depth knowledge of which set of laws is most applicable to your case will ensure a smooth road to debt recovery.