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Navigating Non-Payment Issues in USA-Thailand Food Product Trade

Navigating non-payment issues in the USA-Thailand food product trade can be complex and challenging. One of the key aspects to consider is the recovery system for company funds, which involves a structured approach to recovering outstanding debts. Here, we outline a 3-phase Recovery System designed to help companies navigate non-payment issues effectively and efficiently in the food product trade between the USA and Thailand.

Key Takeaways

  • The Recovery System for Company Funds involves a structured approach with three distinct phases for debt recovery.
  • Phase One includes initial contact with debtors, skip tracing, and attempts to resolve the matter amicably through various communication channels.
  • Phase Two escalates the recovery process by involving affiliated attorneys to demand payment and seek resolution.
  • Phase Three provides recommendations based on the likelihood of recovery, with options for closure or litigation if necessary.
  • Rates for debt collection services vary based on factors such as the age of the account and the number of claims submitted.

Recovery System for Company Funds

Phase One

Upon initiation, immediate action is taken to recover funds. Within the first 24 hours, debtors receive the initial notice and the collection process kicks into gear. Skip-tracing and in-depth investigations are conducted to secure the most accurate financial and contact details.

Persistence is key; our collectors engage daily through various communication channels, striving for a swift resolution. Should these efforts not yield results within 30 to 60 days, the case escalates to Phase Two.

The goal is clear: engage quickly, investigate thoroughly, and communicate persistently to resolve the non-payment issue.

Here’s a quick overview of the initial actions:

  • First notice sent via US Mail
  • Skip-tracing and investigation
  • Daily contact attempts by collectors

Phase Two

Upon escalation to a local attorney, the debtor is confronted with a heightened level of urgency. The attorney’s letterhead adds a layer of seriousness to the demand for payment, coupled with persistent phone calls aimed at securing a resolution. If these intensified efforts fail to yield results, a detailed explanation of the impasse is provided, along with recommendations for the subsequent phase.

Legal action is not taken lightly. It represents a significant step up in the recovery process, involving additional costs and the potential for litigation. The decision to proceed is a critical juncture for the creditor, requiring careful consideration of the debtor’s assets and the likelihood of recovery.

The path forward is clear: either move towards closure or prepare for the legal battlefield. The choice hinges on a strategic assessment of the debtor’s financial landscape and the probability of successful collection.

The following table outlines the debt collection rates based on the age and amount of the claim:

Claims Submitted Accounts < 1 Year Accounts > 1 Year Accounts < $1000 Attorney Placed Accounts
1-9 30% 40% 50% 50%
10+ 27% 35% 40% 50%

Phase Three

Upon reaching Phase Three, the path forward is clear-cut. Two options emerge: closure or litigation. Closure is recommended when asset investigation suggests low recovery prospects. In such cases, no fees are incurred. Conversely, choosing litigation necessitates upfront legal costs, typically between $600-$700.

Decision time is crucial. Opting out means no charges, but proceeding with legal action requires commitment to cover initial expenses. Should litigation not yield results, the case concludes with no further obligations.

Our fee structure is straightforward:

  • For 1-9 claims, rates vary from 30% to 50% of the amount collected, based on the age and size of the account.
  • For 10 or more claims, the rates are slightly reduced.

It’s essential to weigh the potential gains against the upfront costs and the likelihood of successful recovery.

Remember, our goal is to navigate the complexities of non-payment issues efficiently, ensuring your company’s financial interests are safeguarded.

Frequently Asked Questions

What is Phase One in the Recovery System for Company Funds?

Phase One involves sending letters to debtors, skip-tracing, contacting debtors via various methods, and attempting to resolve the matter within the first 30 to 60 days.

What happens if Phase One attempts to resolve the account fail?

If Phase One attempts fail, the case is forwarded to one of the affiliated attorneys within the debtor’s jurisdiction in Phase Two.

What is Phase Two in the Recovery System for Company Funds?

Phase Two involves the attorney drafting letters demanding payment, contacting debtors, and providing recommendations if attempts to resolve the account fail.

What are the options if recovery is not likely after investigation in Phase Three?

If recovery is not likely, the case may be recommended for closure or litigation. Legal action requires upfront legal costs and may result in closure if unsuccessful.

What are the collection rates for different types of accounts in the Recovery System?

The collection rates vary based on the number of claims submitted and the age and amount of the accounts, with rates ranging from 27% to 50% of the amount collected.

What are the costs involved if proceeding with legal action in Phase Three?

Proceeding with legal action in Phase Three requires payment of upfront legal costs, including court costs and filing fees, typically ranging from $600.00 to $700.00.


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