Collection agency
Nothing up front; the fee is a percentage of what is recovered. Work starts the day the account is placed: daily calls, demand letters, skip tracing, negotiation. A third party changes the debtor's posture in a way your own reminders do not. If the account needs legal pressure, it goes to an attorney in the debtor's area from a network of more than 500 collection and litigation attorneys, and you decide whether to sue. You watch every account online.
The trade-off: the agency keeps a percentage of what it collects, and if the case goes to court, suit fees are usually advanced by the client and typically reimbursed once a judgment is collected.
Small claims court
Each state caps the amount you can sue for in small claims, and you handle the case yourself: file the claim, pay the filing fee, serve the debtor, and appear. It works best when the balance is under the cap, the debtor is local, the facts are simple, and you have the time.
The catch is what happens after you win. A judgment is a piece of paper until it is enforced, and enforcement means finding the debtor's bank account, employer, or property and taking the additional legal steps for a garnishment or levy. Many small claims judgments are never collected for exactly that reason. A collection agency can take a judgment you already won and enforce it.
Hiring a lawyer directly
Attorneys generally bill hourly or on a retainer, and some take collection matters on contingency. Going straight to a lawyer makes sense when the balance is large, the contract is genuinely disputed, or the matter is complex enough that litigation is likely from day one.
For an ordinary unpaid invoice, the agency route gets you a local attorney when one is needed, without searching for one yourself or paying for hours of work before the debtor has even been contacted.
A simple way to decide
- Small balance, local debtor, simple facts, and you have the time: small claims is workable, and you can still place the judgment with an agency for enforcement.
- An ordinary past-due invoice or balance, local or out of state: place it with a collection agency.
- Large, disputed, or legally complex, with litigation likely from the start: talk to a lawyer, or place it with an agency and let the attorney network evaluate it in Phase 2.
If you are not sure, a free assessment answers it. We look at the accounts and tell you which route fits.
What a judgment really gets you
A judgment is the right to collect, not the money. After a judgment we run asset searches, verify employment, and locate property and accounts so the judgment actually gets enforced through wage garnishment, bank levy, or asset sale, where the law allows.
Common follow-up questions
Can I use a collection agency after I already won in small claims?
Yes. Judgments are among the accounts we take. We locate the debtor's assets, employment, and accounts and pursue enforcement through our attorney network.
Will a collection agency sue the debtor for me?
Through its attorney network, and only with your authorization. At Accounts Receivable the account goes to an attorney near the debtor for a demand and evaluation first; litigation is your decision.
Does it cost anything to find out which route fits my account?
No. The assessment is free, with a response within one business day.
Talk to us
Tell us about the accounts and we put together a free assessment, usually within one business day. Request a free consultation, contact us, or call 321-710-3530. Ready now? Place a claim and we go to work today. No recovery, no fee.