Primerus law firms have combined to offer a unique Liquidation of Commercial Debt Service to businesses.
For the first time in house counsel and corporate decision makers can access “hands-on” direct business-to-business debt liquidation representation by seasoned creditors’ rights law firms throughout North America and beyond, without the large law firm price tag or the need for an intermediary and through one point of contact.
Commercial debt, also known as trade debt, is secured or unsecured debt owed by one business to another as a result of the sale or provision of goods or services by the creditor to the debtor. Primerus members have a history of successful recovery of delinquent debt on behalf of creditors in almost every industry, from debtors located throughout North America and internationally.
Why the Liquidation of Commercial Debt Group Represents an Opportunity for You
Over $20 billion of business-to-business debt is recovered by third party collectors each year. Most of this is handled by lay (non-lawyer) collectors. These initially attempt to collect and then refer the matter to law firms if internal efforts prove fruitless. The members of this group are prime examples of firms that have traditionally been the destination of lay collector referrals. In other words, they have been liquidating debt for businesses of all sizes for decades. The only difference now is that the group has now created a vehicle to do so directly, through a one-stop service, regardless of where clients and debtors are based.
The Liquidation of Commercial Debt Group represents an opportunity to cut out the middleman. With this comes the potential for better information access to enhance your management decision-making and real potential to increase your bottom line through improved recovery periods and net recovery.
- The stark commercial reality is that payment of overdue debts is made either by threat of future legal action, or by actual action.
- Only lawyers can decide when legal action is appropriate, the form it should take, and the venue most likely to maximize recovery.
- There is nothing a law firm cannot do that a lay collection firm can, and a great deal that only lawyers can do.
- The reason companies do not, by default, turn directly to lawyers to liquidate their debt is historical accident. Historical barriers to advertising, and later barriers to doing so over state lines prevented lawyers from reaching potential clients. The state-by-state jurisdictional regime also made legal debt liquidation practice on a national basis impractical (or effectively cost-prohibitive). Lay collectors, however, could, historically, advertise, make telephone calls or write letters without equivalent restrictions.
Why One-Stop Access to Primerus Creditors’ Rights Lawyers Could Boost Your Profits.
International studies of corporate performance agree that business-to-business (trade) debtors are one of the main assets on most corporate balance sheets and how effectively delinquent debt can have a profound impact on profitability, valuation and even survival.
Direct access to lawyers located and practicing in jurisdictions throughout North America and beyond offers the potential to streamline your recovery performance. Since empirical evidence is clear that successful recovery of delinquent debt is a function of the speed and appropriateness of recovery efforts, going directly to lawyers offers a real chance to improve the percentage of delinquent debt recovered. This could have a significant impact on your business’ bottom line, and here are some of the reasons:
- Going direct to lawyers from the outset means immediate access to legal advice as to whether action is necessary to protect rights in bankruptcy, to protect against counter claims and so on.
- These commercial lawyers can best evaluate what legal action is calculated to produce results when amicable resolution is not possible. If the matter does not warrant the expense and effort of legal action, we will tell you: Primerus members will not waste your money on speculative law suits.
- The members in this group know how to select the best state or federal court venue to deliver the quickest collection results with the least expense to creditor clients. The choice of forum and/or type of legal action is often the difference between success and failure.
- These lawyers know how to cut through sham answers that debtors use to defer legal action and file in lawsuits, and how to end delaying tactics often employed by debtors, resulting in early judgment, and avoiding costly delays.
- There are no surprises. Our commercial lawyers know how to prepare, what to expect and how to work with you to minimize the expenses and maximize the results should legal action become necessary.
- The commercial attorneys search for, and point out, any hidden perils from the outset, protecting your business against an injudicious lawsuit. If legal action should present dangerous concerns, our lawyers will insure that you are warned and can be protected against any hidden prospect of harm.
- All collateral legal problems and issues which may present themselves relating to bankruptcy, secured status, leases, trade regulation law problems and other nuances and hazards of commerce conducted between creditor and debtor are clearly considered and addressed by our experienced legal staff. These attorneys have years of experience identifying and defending clients against counterclaims.
- Successful recovery may depend on timely legal decisions relating to venue, forum, and the available choices of law which are often complicated, even for experienced lawyers. These attorneys make such decisions every day regarding debtors and assets located throughout North America and internationally.
- Primerus attorneys have established relationships with local businesses over a period of time; these relationships can minimize “stall tactics” and increase the probability of settling your cases without protracted litigation.
- An experienced law firm comprised of top-notch attorneys and paralegals, can often settle a case, or even bring it to trial without the necessity for you to provide a witness.
- In debt liquidation, a delay of a day can be the difference between a write-off and recovery. Law firms are well positioned to minimize delay. When legal action becomes necessary, a lawyer can provide first hand recommendations, including cost and risk factors immediately and directly.
- Members are also able to work with your firm on best practice procedures and documentation to minimize future exposure to debt and minimize obstacles to full recovery. They do not just have the experience to react to problems, they can help your business prevent and reduce future accounts receivable issues and costs.
- The cost of liquidation through the Primerus Liquidation of Commercial Debt Group is generally on a par with lay agencies. In the starkest of terms, for the money it costs to use a lay agency, you can get all the advantages of a lawyer.
- Contingent fee (success related) billing arrangements and other non-traditional fee structures are commonplace, in appropriate circumstances.
Group members are located in 42 U.S. States, as well as in Canada, Mexico, UK and an expanding number of countries around the world. Member law firms collected millions of dollars of business-to-business debt in 2009, through out-of-court collection techniques, alternative dispute resolution and conventional legal action.
- A minimum of five years of practice in Liquidation of Corporate Debt, including trial practice.
- That Liquidation of Corporate Debt and commercial law represents a substantial focus of their practice.
- A commitment to substantial continuing education in the fields of creditors’ rights, ancillary commercial law and bankruptcy.
- Most members belong to other legal and business groups that also advance or address the issues of creditors’ rights and debt or asset recovery—many are regular speakers and writers on effective business practice and legal developments that affect creditors’ rights and the successful enforcement of them.
What To Do With Your Collection Problems: Turning Delinquent Accounts Receivable into Cash! - September 16, 2010
Robert W. Bivins, Esq. (Bivins & Hemenway, P.A. – Valrico, FL)
Bret S. Clement, Esq. (Ayres Carr & Sullivan, P.C. – Indianapolis, IN)
Molly L. Fletcher, Esq. (Neil, Dymott, Frank, McFall & Trexler APLC – San Diego, CA)
Sidney Friedman, Esq. (Weinstock, Friedman & Friedman, P.A. – Baltimore, MD)
Christopher Kailas, Esq. (Kohner, Mann & Kailas, S.C. – Milwaukee, WI)
Important Legal Topics Affecting Companies Today – October 2011