Apr 30, 2024

What is Attorney Forwarding? The 7 Step Process

Attorney forwarding is a common strategy employed in commercial debt collection, particularly when traditional collection efforts have been exhausted. This process involves transferring delinquent accounts from a collection agency to a law firm specializing in debt recovery and legal proceedings.

Here’s a breakdown of the seven most common steps involved in attorney forwarding with commercial debt collection:

Step 1: Assessment and Documentation

The process begins with the collection agency assessing the delinquent accounts to determine the viability of legal action. Documentation related to the debt is gathered and organized for the attorney’s review; documentation includes contracts, invoices, correspondence, and any previous collection efforts.

Step 2: Legal Review

Once the accounts are identified for attorney forwarding, they are reviewed by the legal team or attorney to assess the likelihood of successful recovery through legal means. The attorney evaluates the documentation provided, examines the terms of the debt agreements, and determines the applicable laws and regulations governing debt collection in the relevant jurisdiction.

Step 3: Pre-Litigation Communication

Before initiating formal legal proceedings, the attorney may send demand letters or notices to the debtor, informing them of the debt and the consequences of non-payment. These communications often serve as a final opportunity for the debtor to resolve the matter voluntarily before legal action is pursued.

Step 4: Filing of Legal Action

If the debtor fails to respond to pre-litigation communications or refuses to cooperate, the attorney may proceed with filing a lawsuit or initiating other legal actions, which may include arbitration or mediation, depending on the terms of the debt agreement. The attorney prepares and files the necessary legal documents with the appropriate court or dispute resolution forum, commencing the formal legal process.

Step 5: Litigation Process

Once legal action is initiated, the litigation process unfolds according to the rules and procedures of the court or arbitration body. The debtor is served with a summons and complaint, officially notifying them of the lawsuit and providing an opportunity to respond.

Discovery proceedings may occur, during which both parties exchange relevant information and evidence related to the debt. As the case progresses toward its resolution, court hearings, motions, and other legal proceedings take place.

Step 6: Judgment and Enforcement

If the court rules in favor of the creditor, a judgment is issued against the debtor, specifying the amount owed and any additional legal remedies or actions. The attorney, in collaboration with the collection agency or creditor, pursues enforcement of the judgment through various means, such as wage garnishment, bank levies, or asset seizure, depending on the debtor’s financial situation and available assets.

Step 7: Post-Judgment Recovery

Following the issuance of a judgment, the attorney continues to work on behalf of the creditor to recover the outstanding debt. This may involve negotiating payment arrangements with the debtor, monitoring their financial activities for opportunities to collect, and pursuing additional legal actions if necessary.

Throughout the attorney forwarding process, communication and collaboration between the collection agency, attorney, and creditor are crucial for maximizing the chances of successful debt recovery while adhering to legal requirements and ethical standards. By leveraging the expertise of legal professionals, creditors can pursue aggressive yet compliant strategies to recoup delinquent debts and protect their financial interests.


Attorney Forwarding at Prestige Services, Inc.

At Prestige Services, Inc., we are committed to effective and efficient commercial debt collection efforts. We perform attorney forwarding as an effective technique to proceed the commercial debt collection process.

For more information on our attorney forwarding process or other work we do for clients, visit our Services page.

We are an international collection agency and service the entire U.S. as well as foreign countries. In addition, we represent clients from any country outside the U.S. Let us know how we can help you today! Contact us here »

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