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, PC, 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 than 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.
We Work Efficiently To Save You Money
We understand that it can seem counter intuitive to have to spend money to recover money. For this reason, our attorneys work diligently to collect judgments on your behalf in a timely manner.
Call 770-901-2666 or complete our contact form to discuss your collections case with a lawyer at our firm today. Whether you are a Georgia business owner or chief financial officer acting on behalf of your company, let us represent you today.