In the consumer goods market in Thailand, collecting unpaid bills can be a challenging task that requires a strategic approach. One effective method is implementing a Recovery System for Unpaid Bills, consisting of three phases. Each phase is crucial in the process of recovering company funds and dealing with unpaid debts. Let’s explore the key takeaways from this system:
Key Takeaways
- Implementing a Recovery System with multiple phases is essential for effectively collecting unpaid bills in the consumer goods market.
- Thorough investigation of debtor’s assets and circumstances is necessary to determine the likelihood of recovery.
- Options for closure or litigation should be carefully considered based on the circumstances of the case.
- Understanding the costs and rates involved in the recovery process is important for making informed decisions.
- Collaborating with attorneys and legal professionals can enhance the chances of successful debt recovery.
Recovery System for Unpaid Bills
Phase One
The initiation of the Recovery System for unpaid bills is a swift and structured process. Within the first 24 hours, a multi-channel communication strategy is deployed. Debtors receive the initial notice through US Mail, marking the beginning of persistent and varied contact attempts.
Skip-tracing and thorough investigations are conducted to ensure the most accurate financial and contact information is obtained. This foundational phase is critical, as it sets the tone for the recovery efforts. Daily attempts to reach a resolution continue for 30 to 60 days, utilizing phone calls, emails, text messages, and faxes.
The goal is clear: establish contact and seek resolution. If these efforts do not yield results, the case escalates to Phase Two, involving legal representation within the debtor’s jurisdiction.
The following table outlines the frequency of communication attempts made during Phase One:
| Day Range | Communication Attempts |
|---|---|
| 1-15 | Daily |
| 16-30 | Every Other Day |
| 31-60 | Twice a Week |
Phase Two
Upon escalation to Phase Two, the debtor encounters the legal weight of the recovery process. An attorney within our network takes immediate action, drafting a series of demand letters and initiating direct contact attempts. The strategy is clear: apply pressure through legal channels to secure payment.
- The attorney sends the first demand letter on law firm letterhead.
- Concurrent telephone contact attempts begin.
- A detailed report is prepared if resolution efforts fail.
The focus is on persistent and professional pursuit, leveraging legal expertise to recover what is owed.
Should these efforts not yield the desired results, a candid assessment is provided, outlining potential next steps and recommendations for Phase Three. The decision to advance is then placed firmly in the hands of the creditor, with a transparent outline of possible outcomes and associated costs.
Phase Three
Upon reaching Phase Three, the path forward is contingent on the debtor’s financial situation and the likelihood of recovery. Two distinct recommendations may emerge:
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Case Closure: If the debtor’s assets and case details suggest that recovery is improbable, we advise closing the case. This incurs no cost to you or our affiliated attorney.
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Litigation: Should litigation be deemed viable, you face a decision. Opting out means no further costs, but proceeding requires covering legal expenses, typically $600-$700. A lawsuit is then filed to reclaim the full debt plus filing costs. Failure to collect post-litigation results in case closure, with no additional fees owed.
Our competitive rates are structured to align with your claim volume and the age of the accounts. The percentage of the amount collected varies, ensuring fairness and transparency in our services.
For a detailed breakdown of our rates, please refer to the table below:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed Accounts |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Frequently Asked Questions
What is the Recovery System for Unpaid Bills in Thailand?
The Recovery System for Unpaid Bills in Thailand consists of three phases: Phase One involves sending letters to debtors, skip-tracing, and attempting to contact debtors. Phase Two includes forwarding the case to affiliated attorneys for legal action. Phase Three involves recommendations based on investigation results and the possibility of litigation.
What happens if recovery is not likely after investigation in Phase Three?
If recovery is not likely after investigation in Phase Three, two recommendations may be made: closure of the case with no owed fees, or proceeding with litigation. If litigation is chosen, upfront legal costs must be paid, and if unsuccessful, no fees are owed.
What are the rates for debt collection services in Thailand?
The rates for debt collection services in Thailand vary based on the number of claims submitted and the age and amount of the accounts. Rates range from 27% to 50% of the amount collected.
What actions are taken in Phase One of the Recovery System?
In Phase One, letters are sent to debtors, skip-tracing is conducted, and attempts are made to contact debtors via various methods such as phone calls, emails, and faxes. If unsuccessful, the case moves to Phase Two.
What occurs in Phase Two of the Recovery System?
In Phase Two, the case is forwarded to affiliated attorneys who send letters demanding payment and attempt to contact debtors. If no resolution is reached, recommendations for next steps are provided.
What are the options if legal action is recommended in Phase Three?
If legal action is recommended in Phase Three, the client has the option to proceed with litigation by paying upfront legal costs or to withdraw the claim with no owed fees. If litigation fails, no fees are owed.
