How Are Fees Charged for Collections Cases?

Our clients frequently ask us how we charge fees for collections cases. Most law firms that recover unpaid accounts receivables usually charge by the hour or the contingency fee system. Some use a hybrid system that charges a fixed fee and contingency fee.

At Isenberg & Hewitt in Atlanta, we believe that charging a reasonable hourly fee is in the best interests of our clients. We also recover interest and attorney's fees from the debtor whenever possible. This can make collections a profit center for your business rather a cost.

Why Reasonable Hourly Fees Are Better for Creditors

Contingency fees may seem like a good way to pay for services, especially if you are not certain you can collect the amount owed. Paying a lawyer 25 percent to 30 percent of the amount owed is a better deal than recovering nothing.

However, if you have a reasonable expectation of recovering the amount owed (for example, if there is a mechanic's lien or security), contingency fees can take a large cut out of your bottom line, especially if the amount owed is substantial.

A reasonable hourly fee arrangement leaves you with a larger recovery at the end of your case. However, it's important to select a collections attorney who has a track record of success and is known for charging reasonable fees. Contact us for references and case examples.

Learn more about when you can recover attorney's fees for collections cases.

Contact Our Atlanta Law Office for More Information About Attorney's Fees

Call 770-901-2666 or complete our contact form to discuss your collections case with a lawyer at our firm. Our law firm represents business owners, chief financial officers and credit managers throughout Georgia.