Question 1

Where do I sue a debtor?

Accepted Answer

Generally, a lawsuit against your debtor may be brought where the debtor's primary business is located. Sometimes a debtor can be sued where prior payments were made to you. Also, many business contracts provide venue provisions, specifying where a lawsuit can be filed.

Question 2

What are the costs to file a lawsuit?

Accepted Answer

The costs to bring a legal action against your debtor are not as expensive as you may think. Currently, initial costs typically range from $400-$600 per case. Costs include court and process fees, skip traces, asset searches, executions, garnishments and levy fees. Most courts allow for recovery of costs. Costs vary depending on the amount of debt, number of debtors and jurisdiction where suit is filed.

Question 3

What are the benefits of collections counsel?

Accepted Answer

Establishing a relationship with an experienced commercial collections attorney provides credit professionals with flexibility. BSL tailors recovery efforts to your department's needs and industries. Our services include A/R review, pre-suit collection, and litigation services.

Question 4

How does BSL charge for its legal services?

Accepted Answer

At BSL, we generally work on a contingency fee basis. This means that creditor and subrogation clients pay our fees only upon recovery. Other fee options include hourly, flat fee and hybrid. Contact us for current rates.

Question 5

Are attorneys' fee recoverable?

Accepted Answer

As a general rule, attorneys' fee are not recoverable to creditors who prevail in court. However, courts award attorneys' fees when written contracts contain attorney fee provisions. Most states also provide laws and court rules that allow creditors to recover attorneys' fees under certain facts and circumstances.

Brad Singer Law, P.A.

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