Collections
AAA-LAW accepts collections cases on both contingency fee and hourly retainer fee bases.
Contingent or Hourly Fee? There is no constant answer for which is better. Each has advantages and disadvantages. There can be no advance certainty of how much legal work is necessary, how long the process will take, or whether it is economically reasonable to incur legal fees. Sometimes defendants conceal assets, disappear, die, become insolvent, or file bankruptcy. Other defendants settle quickly. Whether you prefer contingency or hourly really depends on you.
Contingent Fees
We accept collection cases on a contingent fee basis. Meaning if there is no recovery of money, property, or benefit, we receive no fee. The advantages are that you need not put any new money in for legal fees to chase money you have already lost. In this scenario you are not responsible for any additional fees, and you are not burdened by continuing expenses on a bad situation from the past. The only disadvantage of a contingent fee is if the debtor pays without the need for much legal effort, your legal fees may end up higher than what you would have paid hourly.
Hourly Fees
We charge hourly fees based on actual time spent on your case. Some cases result in rapid collection. Others take extensive effort to collect. Sometimes they require extensive effort but do not result in a favorable outcome. There is no way to predict in advance.
Hourly legal work will require an advance retainer and subsequent regular billings as work continues. If the case resolves quickly, hourly fees could be less than contingent fees on larger cases. Hourly fees can maximize recovery, however, keep in mind that when cases drag out and billings continue, clients often grow impatient. It takes staying power to choose hourly fees.
Recovery of Fees
Legal fees and costs may be added to the judgments in many cases. To recover fees we must pursue the case all the way to judgment and ask the court to award legal fees and costs.