Collections: Collection Accounts - What We Can Do For You

     We can assist you by handling all seriously delinquent accounts from start to finish - no other collection alternative that you have can do this.
     I also want to thank all of you who are clients. You helped make this year our most successful ever. I look forward to an ever better 2017.
     For those of you who are not yet clients, please know that I am always ready and willing to meet with you. At Lafayette, Ayers & Whitlock, PLC, we have a diverse general practice of law. We focus on Creditor’s Rights. We are unique amongst Creditor’s Rights law firms as we represent you in all areas: collections, bankruptcy, foreclosure and real estate.
     In collection matters, we can assist you by handling all seriously delinquent accounts from start to finish - no other collection alternative that you have can do this.
     If you hire an additional staff employee, you are paying salary and benefits for collections. This amount is non-recoverable from your debtors, even though they caused the expenditure. Further, since the employee is not an attorney, they cannot try contested cases, or file Motions for Judgment in Circuit Court, or conduct debtor's interrogatories (without interrogatories many collection cases will sit inactive).
     If you employ a collection agency, you may incur a flat fee cost for accounts. This cost is not recoverable under Virginia law, despite the fact that your loan documents say that the debtor will pay all costs of collection. In addition to these nonrecoverable costs, you will also have percentage costs that you cannot recover. A collection agency is frequently your worst option because they can do less for you than you can do for yourself. In reviewing the Collection Alternatives Comparison Charts, you will see that if a debtor does not respond to the collection agency's letters, the agency is sunk. The agency cannot file any court papers on your behalf, and they cannot perform any judgment executions. In the end, all a collection agency does is provide a threatening third party voice.

Chart One: Action

ACTION	COLLECTION AGENCY	ADDITIONAL EMPLOYEE	LAW, PLC
Make Demand	Yes	Yes	Yes
Collect Payments	Yes	Yes	Yes
Take Judgment	No	Yes	Yes
Try Contested Cases	No	No	Yes
File Garnishment	No	Yes	Yes
Levy	No	Yes	Yes
Summons to Answer Interrogatories	No	No	Yes

Chart Two: Costs

ACTION	COLLECTION AGENCY	ADDITIONAL EMPLOYEE	LAW, PLC
Costs	Unrecoverable fee paid to agency, if they collect, and non-assessable to the     debtor	All collection costs are out of your pocket and non-assessable to the debtor	1/3rd fee of all amounts collected- 25% recoverable from debtor upon court judgment  unless your loan documents say 1/3rd - you only pay fees on what we collect

     If you choose Lafayette, Ayers & Whitlock, PLC, we can handle your accounts from beginning to end. We can accept all cases on a one-third contingency fee of all amounts collected. We will assess the court-allowed fee the moment the account is turned over for collection, and this amount is recoverable from the debtor. We have trained and experienced support staff and an aggressive approach to collections. In reviewing the Course of Action Chart (below) you will see that we will aggressively pursue your recovery. Virginia District Court judgments are good for ten years, twenty in the Circuit Court. If the judgment is docketed (we docket all judgments unless the value is very small or you instruct otherwise), the lien is enforceable for twenty years. We provide detailed monthly accounting. At the beginning of each month you will receive a report outlining significant matters, a computer generated financial accounting, by debtor, dollar for dollar. You will also receive a case status report detailing current status and action.

COURSE OF ACTION CHART

Step 1 --- Account turned over for collection.
Step 2 --- Demand letter sent to debtor within 24 hours of our receipt of the account.
Step 3 --- After ten days (a time period that we are required by federal law to give), if there is no plan for payment that you approve, we will file suit. The suit is normally set 30-45 days in advance.
Step 4 --- On the date of the suit return we will either obtain default judgment or, if the debt is contested, set the case for trial.
Step 5 --- Once judgment is entered, and after the ten-day appeal period, we will docket the judgment and proceed in post-judgment collections, as set forth below.
Step 6A --- Establish an acceptable post-judgment payment plan; if not,
Step 6B --- Garnishment of wages or accounts; if not,
Step 6C --- Levy on personal property; if not,
Step 6D --- If no apparent remedy, schedule debtor's interrogatories and return to Step 6A.
Step 7 --- If there are no apparent collection measures available, we will review a new credit report every six months and return to Step 6A.

     In bankruptcy matters, we can assist you by handling all of your needs. We can review bankruptcy schedules, review and object to chapter 13 plans, file proofs of claim, attend hearings and more.
     In foreclosure matters, we can assist you by handling all of your foreclosure cases from demand to final accounting in all counties and cities across the Commonwealth.
     In real estate matters, we can assist you by preparing loan documents for first, second, equity line and refinances, as well as conducting closings, recordings and coordinating title examination and title insurance.
     Please call me at 545-6251 for a free consultation.