How much will the collection effort cost?

A. Attorneys' Fees

Like most collection attorneys, we charge either a percentage on the amounts we recover (a contingency fee) or an hourly rate. Our contingency fees are negotiable, based on the age of the account, the number of accounts and balances involved, and how much the accounts have been worked by others before being referred to us. We can also structure our contingency fees based on when the debt is recovered, e.g., after a demand has been made or after a lawsuit has been filed.

We may charge an hourly fee instead of a contingency fee if the account involves very complicated issues of fact or law or may involve counter-claims by the debtor.

Our administrative costs (copying, certified mail and other office overhead) are absorbed as part of our contingency fee or hourly rate. However, there may be a charge for efforts to re-locate the debtor (skip-tracing) and obtaining copies of public records or court documents.

B. Court and Other Costs

The first step in the litigation process is to prepare and file a lawsuit. Filing fees vary from court to court. Most Louisiana judicial district courts require an initial deposit of $170.00 or more which includes service of the lawsuit on at least one defendant. It is common for courts to require additional amounts as the litigation process continues. City courts or small claims courts charge less but the debtor must live within the city limits.

If the debtor does not appear or does not dispute the debt, a judgment in a judicial district can be obtained and recorded in the mortgage records for under $300.00. Additional costs are needed if the debtor's wages are to be garnished or other assets seized. These costs can range from $200 for garnishments to $500 for a sheriff's deposit to seize assets.

Costs may increase if the debtor answers the lawsuit and disputes the debt.

We ask our clients to advance all court costs and invoice them as necessary. Always compare the costs of litigation with the balances involved and the solvency of your debtor.

Can I pursue my debt in Louisiana?

What steps should I take before turning the account over to my collection attorney?

What records and documents will my collection attorney need?

What are the steps in collecting a debt?

How and when will my collection attorney communicate with me during the process?

What kind of settlement or recovery should I expect?

How do I get paid after the debt is recovered?