IRVINE, CA / ACCESSWIRE / May 27, 2022 / Assured Legal, an experienced commercial collection litigation firm, has announced that it has expanded its Pre-Legal Investigation Department. "With the hiring of extra employees," says Assured Legal, "we'll be better able to handle the 30% increase in client inquiries we have received in 2022."
The development comes as the debt collections industry continues to grow at 3.1%. "In 2021," Assured Legal points out, "the debt collections industry was worth $18.6 billion, and with annual growth rates climbing, collections are growing more quickly than the pace of the economy." While consumer debt collection was reduced or postponed due to the COVID-19 pandemic, it's important that commercial collections continue.
"We are excited about expanding our team of legal experts," says a representative for Assured Legal. "We're planning to expand into other areas but at this time we're most enthusiastic about the new team."
Addressing the growing need is critical now, says the firm. "Businesses rely on cash flow. When it comes to commercial debt, a lack of follow-through with payments can mean that a business suffers significant losses. While some businesses may have the sustainability to relax their payment standards during economically challenging times, doing so can set a groundwork for a slippery slope when it comes to repayment of debts."
A survey by Commercial Collection Agencies of America shows a drastic drop (68.9%) in the probability of full collection on a delinquent account in as little as three months. After just six months, collectability drops to 51.3%; after a year, it drops to 21.4%. Assured Legal reveals, "The longer a business waits to collect a debt, the less likely they are ever to be repaid in full."
Because of this, and because often businesses will not repay debts if clear consequences are not in place, many companies choose litigation. Litigation is a logical step to consider if several thousand dollars are owed, there is proof of the debt, the debtor has the capacity to pay, and the payment request has been ignored for at least 90 days.
"This is where we come in," Assured Legal Says. "As a reputable and trustworthy commercial collection firm, we will perform a pre-legal investigation of assets, which helps to determine if an account is a good candidate for litigation."
Assured Legal is an experienced team of commercial collection professionals dedicated to providing clients with superlative service, and to setting a standard for leadership in the compliance industry.
To create an environment of trust and transparency with customers, Assured Legal points out on their website that when deciding whether or not to pursue litigation, creditors should consider the financial cost of filing a lawsuit. Typical litigation costs include attorney fees, filing fees, miscellaneous costs for depositions, sheriff fees, and process server fees. Commercial collection agencies that also offer full-service legal assistance can estimate these costs upfront and help manage them for clients.
Assured Legal is committed to doing everything possible to limit the timeframe for litigation, but wants clients to be aware that the process can take time, as quite a bit depends upon the debtor, the location, and other factors that vary from case to case. There may be complications and delays involved, especially if the debtor chooses to fight the lawsuit; this can increase the time for a judgment to be rendered.
"We know this can be frustrating," says Assured Legal, "particularly for businesses who may have already spent a minimum of 90 days attempting to collect this debt, it is vital that each phase is done thoroughly. Assured Legal will consistently stay in touch with clients to ensure them of each step along the way.
Once litigation has begun on a commercial collection case, the case may settle favorably, as the debtor realizes that the creditor is taking the debt seriously. If the business in debt chooses to fight litigation, the case may go to trial. As mentioned previously, this is rare, and a trial is typically only necessary when factual issues are disputed. When the facts are undisputed, many collection matters are resolved by a summary judgment in the creditor's favor.
Litigation is an important component of the commercial collection process. Without the threat of litigation, many businesses in debt will simply refuse to pay, knowing that the creditor is unwilling to follow through. When a debt is rightfully owed, and the debtor has resisted payment, sometimes stronger steps are required.
"We're ready to handle everything," says Assured Legal. "Our clients include heads of credit departments of major corporations, litigation attorneys, lenders, bankers, accountants, parties to real estate transactions, and other professionals."
Assured Legal helps clients focus on running their lives and businesses rather than worry about collection or enforcement of judgment problems. Says the firm, "We're experienced and ready to provide exceptional legal advice and aggressive, responsive, and cost-effective representation."
Assured Legal is available for consultation bookings now:
Assured Legal is a commercial collection litigation firm based in California. Services include prejudgment Writ of attachment, commercial credit debt collection, commercial collection of property, nationwide judgment enforcement, and prejudgment relief.
SOURCE: Assured Legal
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