Often a client will win a verdict but the losing party refuses to pay. This is where Catalyst Law steps in and helps attorneys from a variety of practice areas. Catalyst uses all methods available to collect these debts. We garnish bank accounts, wages, and other parties holding cash on behalf of the debtor. We attach personal property as well as use general and special execution to sell personal and real property. All of these tools are outside the normal practice for many attorneys. Rather than spend your time re-learning the use of these tools, let Catalyst do the work for you at no additional cost to you or your client.
Catalyst charges flat fees for each of the services we offer to collect the debt. As is appropriate in all of these actions, the Debtor is ultimately responsible for all reasonable attorney fees and costs to collect the debt. Our fees serve to increase the total amount owed by the Debtor. We continue to collect from the Debtor until the debt and our fees are paid in full.
Collection work has costs. Either the Client or the attorney that engages Catalyst is responsible for these costs. These may include court fees, sheriff fees, private investigator fees, skip tracing, and so forth. The costs will be disclosed by Catalyst and approved by the Client before they are incurred. These fees also increase the total amount of the debt and are ultimately collectible from the Debtor.
Payment for our fees only comes from money collected from the debtor. As we collect, we retain 20% of all moneys until our fees are paid in full. The only time a client would be liable to pay Catalyst anything for debt collection work is if the Client was paid directly by the Debtor.
Heather Smith is awarded a $30,000 verdict for attorney fees and damages against Bob Jones. To collect this debt, Catalyst garnishes Mr. Jones’s wages, garnishes his bank account, and sells his collector car at auction. Catalyst’s fees are $4,000. Costs are $1,000. Mr. Jones’s employer pays a total of $2,000 as a result of the garnishment. Catalyst retains 20% ($400). When the bank pays the $6,000 in Mr. Jones’s account, Catalyst retains $1,200. Finally, when the car is sold for $27,000, Catalyst retains $2,400 and is paid in full. Ms. Smith is paid in full plus she recovered her $1,000 in costs.
Catalyst will entertain the option of a contingency fee arrangement where Catalyst covers all costs. In a contingency fee case, Catalyst retains 20% of all money collected plus costs.
We know how valuable a client relationship is to an attorney. Rather than take over a client relationship, Catalyst works with the existing attorney to collect the debt. The Client is still the client, but we agree to communicate through the attorney who refers us the business to help that attorney maintain that client relationship. This makes Catalyst a value add to the existing relationship, rather than an admission that the original attorney hates debt collection.