Handling unpaid invoices for American exports to the UAE can be a challenging process, especially when it comes to investigating and recovering the funds owed. In this article, we will explore the thorough investigation of unpaid invoices, recommendations for recovery, recovery options and costs, as well as the three-phase recovery system designed to facilitate the recovery of company funds. By understanding the key takeaways from each phase, exporters can make informed decisions when dealing with unpaid invoices in the UAE.
Key Takeaways
- Thorough investigation is crucial for determining the possibility of recovery.
- Recovery recommendations may include closure of the case or proceeding with litigation.
- Legal action requires upfront legal costs and may result in the need to pay filing fees.
- The recovery system involves three phases, each with specific actions and recommendations.
- Competitive collection rates are tailored based on the number of claims submitted and the age of the accounts.
Investigation and Recovery Process
Thorough Investigation of Unpaid Invoices
When we face unpaid invoices, our first step is a thorough investigation. We dig deep into the facts, examining the debtor’s assets and the circumstances of the case. It’s crucial to assess the likelihood of recovery before taking further action.
Recovery isn’t always straightforward. We consider various factors:
- The age of the account
- The amount owed
- The debtor’s financial status
Our goal is to provide a clear picture of the situation, enabling informed decisions on the next steps.
If the investigation suggests a low chance of recovery, we may advise closing the case. However, if prospects look favorable, we’ll explore all avenues to recover your funds. Here’s a snapshot of our rates for different scenarios:
| Number of Claims | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Involvement |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Remember, if litigation is recommended and you choose to proceed, upfront legal costs will apply. These typically range from $600 to $700, depending on jurisdiction.
Recommendations for Recovery
When we’ve dug deep into the unpaid invoices, it’s time to strategize for recovery. We must weigh the likelihood of successful recovery against the costs involved. If the odds are not in our favor, we’ll advise closing the case, sparing you unnecessary expenses. Conversely, if litigation seems promising, you’ll face a decision point.
Litigation requires an upfront investment for legal fees, typically ranging from $600 to $700. This covers court costs and filing fees, with our affiliated attorney ready to champion your cause. Should litigation not yield results, rest assured, you owe us nothing further.
Our fee structure is straightforward and competitive, incentivizing successful recoveries. Here’s a snapshot:
- For 1-9 claims, rates vary from 30% to 50% of the amount collected, depending on the age of the account and the claim amount.
- For 10 or more claims, the rates are slightly reduced, reflecting our commitment to volume recovery.
We’re committed to transparency and efficiency throughout the recovery process, ensuring you’re informed and in control every step of the way.
Recovery Options and Costs
When we’ve exhausted all avenues, we’re faced with a decision. We either close the case or take legal action. If the latter, be prepared for upfront costs. These can range from $600 to $700, depending on the debtor’s location.
Costs are an inevitable part of the recovery process. Here’s a breakdown of our rates:
| Claims Quantity | Account Age | Rate (% of amount collected) |
|---|---|---|
| 1-9 | Under 1 year | 30 |
| 1-9 | Over 1 year | 40 |
| 1-9 | Under $1000 | 50 |
| 10+ | Under 1 year | 27 |
| 10+ | Over 1 year | 35 |
| 10+ | Under $1000 | 40 |
Remember, if litigation fails, you owe us nothing. It’s a no-win, no-fee assurance to give you peace of mind.
Choosing to proceed with legal action is not taken lightly. We’ll guide you through every step, ensuring you’re informed and prepared for what’s ahead.
Recovery System Phases
Phase One: Initial Recovery Steps
We hit the ground running within the first 24 hours of an unpaid invoice report. Our immediate action plan includes dispatching a series of letters to the debtor and conducting a comprehensive skip-trace to unearth the most current financial and contact details. We’re relentless in our pursuit, employing phone calls, emails, text messages, and faxes to engage with the debtor.
Daily attempts are made to secure a resolution, persisting for 30 to 60 days. If these efforts don’t yield results, we’re prepared to escalate to Phase Two, involving our network of affiliated attorneys.
Our initial phase is critical, setting the tone for the recovery process. Here’s a snapshot of our early-stage efforts:
- Sending the first of four letters via US Mail
- Skip-tracing and investigating debtor information
- Persistent contact attempts by our collectors
Persistence is key in this phase. We maintain a steady pressure to demonstrate our commitment to recovering your funds. If this phase concludes without payment, we seamlessly transition to the legal muscle in Phase Two.
Phase Two: Legal Action and Attorney Involvement
Once we escalate to legal action, we’re in the trenches together. Our affiliated attorneys within the debtor’s jurisdiction take the helm. They draft demands and persistently pursue contact, leveraging their legal letterhead for added weight. If these efforts falter, we’re at a crossroads.
- The attorney sends a series of letters to the debtor.
- Concurrent phone calls aim to secure payment.
- If unyielding, we assess and recommend next steps.
We’re committed to transparency. You’ll be apprised of every twist and turn, ensuring you’re never in the dark.
Should we hit a dead end, we pivot to Phase Three. Here, we either advise case closure or, if prospects of recovery are promising, we prepare for litigation. Be mindful, litigation incurs upfront costs—court fees, filing charges, typically between $600 to $700. These are necessary to pursue what’s rightfully yours.
Our rates are clear-cut:
| Claims Quantity | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney-Placed Claims |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Remember, if litigation doesn’t pan out, you owe us nothing further. Our commitment is to your financial recovery, not to compound your expenses.
Phase Three: Recovery Recommendations
At this juncture, we face a critical decision. If the likelihood of recovery is slim, we advise closing the case, incurring no further costs. Conversely, should litigation seem viable, a choice presents itself. Opting out means no additional fees, while proceeding necessitates upfront legal expenses, typically between $600 to $700.
We stand by our commitment to a transparent fee structure, ensuring you’re informed every step of the way.
Our fee schedule is straightforward. For 1-9 claims, expect 30% for accounts under a year old, 40% for older accounts, and 50% for amounts under $1000 or if an attorney is involved. For 10 or more claims, the rates are slightly reduced. Here’s a quick breakdown:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Involved |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Recovery is our endgame, and we tailor our efforts to maximize your chances of reclaiming what’s rightfully yours. Should litigation fail, rest assured, you owe us nothing further.
Frequently Asked Questions
What is the process for investigating unpaid invoices?
The process involves a thorough investigation of the facts surrounding the case and the debtor’s assets to determine the possibility of recovery.
What are the recommendations for recovery if the possibility of recovery is not likely?
If recovery is not likely, the recommendation will be to close the case, and there will be no obligation to pay the firm or affiliated attorney for these results.
What are the options if litigation is recommended?
If litigation is recommended, the options include proceeding with legal action by paying upfront legal costs or allowing the firm to continue pursuing the debtors with standard collection activity.
What are the upfront legal costs if legal action is pursued?
The upfront legal costs typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction.
What are the rates for collection services?
The rates for collection services 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.
What are the phases of the recovery system for unpaid invoices?
The recovery system consists of three phases: Initial Recovery Steps, Legal Action and Attorney Involvement, and Recovery Recommendations.
