Month: August 2016

B2B Lawyers v. Collection Agencies

If you own a business and have a contract with another business to provide goods or services (B2B) and they default or breach, you may wonder whether you should hire an attorney or a collections agency. The answer is a question: what is the amount due?

You see collection agencies typically deal in 50/50 splits of what they recover. For example, ┬áif the breaching party owes your company $50,000.00 and the collection agency recovers all of it, you would receive $25,000.00 back. Not a bad paycheck for a couple of hours of work, right? Another note – if they can’t settle it and make the decision to file suit, they use lawyers who are typically right out of school and pay them very little so there is extremely high turnover.

If you hire a lawyer to pursue the breaching party, many (including me) will charge by the hour. So, in my case, our initial consultation is free, then I would look at the contract and send a demand letter demanding the breaching party pay or face a lawsuit. Using the example above, if they settle prior to filing suit or very early on in litigation and pay the full amount, you may see a bill for lawyer services in the amount $1,000.00 or even less, meaning you would keep $49,000. Big difference, right?

On smaller cases or high volume, a collections agency may be the way to go. But ask yourself the question above first and foremost.


Your Lawyer Has Done a Wonderful Job. Here’s How to Screw it Up.

Ultimately, the sentence is always up to the Judge. Defense counsel will always ask for a lighter sentence while the State will ask for a higher one assuming the lawyers have not already negotiated a deal. Here’s what not to say when the Judge asks you if you have anything to say:

  • Then when I saw the murdered body, I ran outta the room like this (then run out of the courthouse).
  • You talk pretty tough for someone who wears a dress.
  • I don’t know why everyone else is mad with me. It was my dynamite that got blown up! Now all I have left is this one stick right here.
  • If I am found innocent, can I keep the money I stole?
  • You asked me who some of my heroes are? Well, there’s O.J. Simpson…
  • Can we hurry this up? I have a shipment coming in in 30 minutes.
  • I need a new lawyer. This one sucks.



Partially adapted from Clarence Darrow’s list with modifications.