When is it appropriate to consider legal enforcement for an uncollectible debt?
Our standard for recommending litigation is a minimum of $1,000. if a City, Civil or District Court can be used, and a minimum of $1,500 if it is necessary to file the case in Supreme Court. This approach is followed in order to treat the case in a cost effective manner. When a Summons & Complaint is served and filed with a court, it is necessary to obtain an Index Number from that Court. At present, City, State and District Courts charge $45.00 for an Index. Number. Supreme Court Index Numbers are $210.00. Further, if the debtor is a business corporation, service on the Secretary of State is also required and costs $40.00 per Debtor. Process server fees typically range from $50 to $100 per Debtor. Although Index Numbers and some costs can be recouped if a judgment is obtained, we do not find it worthwhile for the client to litigate for amounts lower than $1,000 (or $1,500 if it is necessary to file the case in Supreme Court). 2. What Is the Fair Debt Collection Practices Act and what
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- When is it appropriate to consider legal enforcement for an uncollectible debt?
