Recovering payments for agricultural exports to Canada can be a complex process, especially when facing challenges such as non-payment or delayed payments. In this article, we will explore a three-phase recovery system for company funds related to agricultural exports to Canada. This system involves initial recovery processes, legal action, and recommendations for handling the costs involved. Understanding this recovery system is crucial for companies involved in agricultural exports to protect their financial interests and ensure timely payments.
Key Takeaways
- The recovery system for company funds involves three distinct phases: initial recovery process, legal action, and recommendations for handling costs.
- Phase One includes sending letters to debtors, skip-tracing, and attempting to contact debtors for resolution.
- Phase Two involves forwarding the case to affiliated attorneys, drafting demand letters, and further attempts to contact debtors.
- Phase Three offers two recommendations: closure of the case if recovery is unlikely or proceeding with litigation, which entails upfront legal costs.
- Rates for collection and attorney services are outlined based on the number of claims and age of accounts, providing clarity on potential costs.
Recovery System for Company Funds
Phase One: Initial Recovery Process
Within the first 24 hours of initiating Phase One, we spring into action. Our team dispatches the initial letter to the debtor and undertakes comprehensive skip-tracing to unearth the most current financial and contact details. We’re relentless, employing phone calls, emails, text messages, and faxes to engage with the debtor.
Daily attempts are made to secure a resolution within the critical first 30 to 60 days. It’s a period of intense activity, aimed at avoiding the escalation to legal proceedings.
If our persistent efforts don’t yield results, we’re prepared to transition to Phase Two. This involves escalating the case to our network of affiliated attorneys, strategically located within the debtor’s jurisdiction. Here’s a snapshot of our initial recovery process:
- Dispatch of the first letter via US Mail
- Comprehensive skip-tracing and investigation
- Persistent contact attempts using multiple communication channels
Our goal is to resolve the matter swiftly and efficiently, minimizing the need for further action. However, should the need arise, we’re equipped to take the necessary legal steps to recover your funds.
Phase Two: Legal Action and Attorney Involvement
Once we escalate to legal action, our affiliated attorneys spring into action. Immediate drafting of demand letters on law firm letterhead signals the seriousness of our intent. Persistent contact attempts via phone complement this approach, ensuring the debtor understands the gravity of the situation.
Costs are upfront and necessary for litigation. You’re looking at court costs and filing fees averaging $600-$700, depending on jurisdiction. These fees are your stepping stone to reclaiming what’s owed, including the cost to file the action itself.
Should litigation prove unsuccessful, rest assured, you owe us nothing further. Our commitment is to your financial recovery, not adding to your burdens.
Our rates are competitive, with a sliding scale based on claim volume and age. Here’s a quick breakdown:
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For 1-9 claims:
- Under 1 year: 30%
- Over 1 year: 40%
- Under $1000: 50%
- With attorney: 50%
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For 10+ claims:
- Under 1 year: 27%
- Over 1 year: 35%
- Under $1000: 40%
- With attorney: 50%
Remember, our goal is to navigate these legal waters smoothly and recover your funds efficiently. We stand by you, every step of the way.
Phase Three: Recommendations and Costs
At this juncture, we face a critical decision. If the likelihood of recovery is low, we’ll advise case closure, sparing you further costs. Conversely, should litigation seem viable, a choice presents itself. Opting out means no fees owed to us or our attorneys. Alternatively, standard collection efforts can persist.
Choosing litigation necessitates upfront legal fees, typically $600-$700, based on the debtor’s location. These cover court costs and filing fees, initiating the lawsuit for the full debt amount. Failure to collect post-litigation results in case closure with no additional fees.
Our rates are competitive, structured as follows:
-
For 1-9 claims:
- Under 1 year: 30%
- Over 1 year: 40%
- Under $1000: 50%
- With attorney: 50%
-
For 10+ claims:
- Under 1 year: 27%
- Over 1 year: 35%
- Under $1000: 40%
- With attorney: 50%
We tailor our rates to the volume and age of claims, ensuring fairness and efficiency in our recovery efforts. Our commitment is to your financial recuperation, with transparency at every phase.
Frequently Asked Questions
What is the recovery system for company funds?
The recovery system for company funds consists of three phases: Initial Recovery Process, Legal Action and Attorney Involvement, and Recommendations and Costs.
What happens in Phase One of the recovery process?
In Phase One, the debtor is sent letters via US Mail, skip-tracing and investigation are conducted to obtain financial and contact information, and attempts to contact the debtor are made through phone calls, emails, text messages, and faxes.
What is the process in Phase Two involving legal action and attorney involvement?
In Phase Two, the case is forwarded to an affiliated attorney within the debtor’s jurisdiction. The attorney drafts letters demanding payment and attempts to contact the debtor via telephone.
What are the recommendations and costs in Phase Three?
In Phase Three, two recommendations are provided: closure of the case if recovery is not likely, or litigation. If litigation is recommended, upfront legal costs such as court costs and filing fees are required. The rates for collection activities are also provided.
What are the options if legal action is recommended in Phase Three?
If legal action is recommended, the options include proceeding with legal action by paying upfront legal costs, allowing continued pursuit of the debtors with standard collection activity, or withdrawing the claim and owing nothing to the firm or affiliated attorney.
What are the collection rates for accounts under the recovery system?
The collection rates depend on the number of claims submitted and the age and amount of the accounts. Rates range from 27% to 50% of the amount collected based on the specific criteria.
