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Addressing Delinquent Accounts in the USA-Canada Timber Trade

The timber trade between the USA and Canada is a significant aspect of the economy, but delinquent accounts can pose challenges for companies involved. In this article, we will explore a Recovery System designed to address delinquent accounts in the timber trade.

Key Takeaways

  • Timely communication and investigation are crucial in the initial phase of addressing delinquent accounts.
  • Engaging legal assistance may be necessary if initial attempts to resolve the account fail.
  • Consider the cost implications of pursuing legal action for debt recovery.
  • Rates for debt collection services vary based on the age and amount of the accounts.
  • Closure of a case may be recommended if the possibility of recovery is deemed unlikely.

Recovery System for Company Funds

Phase One

Within the first 24 hours of initiating Phase One, we spring into action. Our team sends out the initial letter to the debtor and employs advanced skip-tracing to uncover the most current financial and contact details. We’re relentless, making daily attempts to reach a resolution through calls, emails, texts, and faxes.

If our persistent efforts don’t yield results within the first 30 to 60 days, we don’t hesitate to escalate. We move swiftly to Phase Two, engaging our network of affiliated attorneys to apply localized pressure.

Our goal is clear: to secure a resolution swiftly and efficiently, minimizing the time your funds are tied up in delinquent accounts.

Here’s a snapshot of our initial contact strategy:

  • First letter dispatched via US Mail
  • Comprehensive skip-tracing and investigation
  • Persistent collector engagement

Persistence and precision are the cornerstones of our approach in Phase One. We leave no stone unturned in our quest to recover what’s rightfully yours.

Phase Two

Once we escalate the matter to Phase Two, our affiliated attorneys take the reins. They draft a series of demand letters on their official letterhead, signaling a serious intent to recover the funds owed. Concurrently, they initiate direct contact with the debtor through persistent phone calls, aiming to negotiate a resolution.

If these intensified efforts still don’t yield results, we’re faced with a critical juncture. We provide you with a comprehensive report detailing the challenges encountered and our professional advice on how to proceed. Here’s a snapshot of the possible outcomes:

  • Continued standard collection activities (calls, emails, faxes)
  • Advancement to Phase Three for potential litigation

At this stage, we’re committed to keeping you fully informed and equipped to make the best decision for your company’s financial recovery.

Our approach is designed to apply increasing pressure while maintaining the utmost professionalism and adherence to legal standards. We understand the importance of your company’s reputation and strive to uphold it throughout the recovery process.

Phase Three

Upon reaching Phase Three, we face a critical decision point. After exhaustive investigation, we’ll either advise case closure or recommend litigation. The choice is ours to make. If we opt against legal action, we can withdraw the claim at no cost, or persist with standard collection efforts.

Should we pursue litigation, upfront legal costs will be incurred. These typically range from $600 to $700, based on the debtor’s location. Our affiliated attorney will then initiate a lawsuit for the full amount owed, including filing costs. Failure to collect through litigation results in case closure, with no fees owed to our firm or attorney.

Our competitive rates are structured to align with the number of claims and their age. The percentage of the amount collected varies, reflecting our commitment to tailored solutions.

Here’s a breakdown of our rates for different scenarios:

Claims Submitted Accounts < 1 Year Accounts > 1 Year Accounts < $1000 Attorney Placed
1-9 30% 40% 50% 50%
10+ 27% 35% 40% 50%

In summary, we must weigh the potential for recovery against the costs and risks of litigation. Our approach is designed to be flexible, allowing us to adapt to the unique circumstances of each case. The goal is always clear: to maximize recovery while minimizing unnecessary expenditure.

Frequently Asked Questions

What is the Recovery System for Company Funds?

The Recovery System for Company Funds consists of three phases: Phase One involves sending letters to debtors, skip-tracing, and attempting to resolve the matter. Phase Two includes forwarding the case to an affiliated attorney for further action. Phase Three involves either recommending closure of the case or proceeding with litigation.

What happens if recovery of funds is not likely in Phase Three?

If recovery of funds is not likely in Phase Three, two options are presented: closure of the case with no owed fees, or proceeding with litigation where upfront legal costs are required.

What are the rates for the Recovery System?

The rates for the Recovery System vary based on the number of claims submitted and the age of the accounts. Rates range from 27% to 50% of the amount collected, depending on the specific circumstances.

How does Phase One of the Recovery System work?

Phase One involves sending letters to debtors, skip-tracing, investigating financial information, and attempting to resolve the matter through various communication channels like phone calls and emails.

What is the process in Phase Two of the Recovery System?

In Phase Two, the case is forwarded to an affiliated attorney who sends demand letters to the debtor, attempts to contact the debtor, and provides recommendations for further steps if resolution is not reached.

What are the options if legal action is recommended in Phase Three?

If legal action is recommended in Phase Three, the client can choose to proceed with litigation by paying upfront legal costs or withdraw the claim with no owed fees.


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