UNIVERSAL MYTH - SIZE DOES MATTER

There is a myth prevalent in the collection world, both in the minds of creditors and debtors that some debts are simply too small to be worth collecting. This is a myth. A creditor should never make a determination on whether to proceed with legal debt collection based on the size or amount of the debt. This is simply an irrelevant and inaccurate yard stick to determine whether or not a debt should be sent to an attorney for collection activity. The true measure of whether a debt should be sent to a debt collection lawyer is whether or not it is COLLECTIBLE. A $150.00 debt that is owed by an executive who makes $200,000.00 a year and is based upon a written contract for medical services is imminently collectible and worth $150.00. A debt for $100,000.00 that is based on an open account without a signed contract by a waitress who works at Waffle House is worth nothing because it is not collectible.

This is a difficult myth to overcome, both in the minds of creditors and debtors. I have a medical services provider whose average debt is $150.00. I routinely file hundreds of collection suits for that client each year. Prior to filing the suits, creditor and I make an informed and intelligent decision based upon the debtor's employment, home ownership, and other income and asset factors to determine whether the debt is collectible. If the debt is collectible, I file suit and recover the amount of money owed. If the debt is uncollectible based on those factors, it is written off. Using this method, this particular client has now been able to recover literally tens of thousands of dollars which it had previously simply written off as bad debt. I utilize this same system to determine whether high dollar debts are collectible and will not in good conscience file suit on a large debt for a client that I know beforehand is simply uncollectible regardless of what my potential fee may be. If that the result of this system is that I continuously have to convince new clients that some of their smaller accounts are worthy of suit, and I am called by debtors who are amazed that a creditor has not walked away from a $200.00 debt, but has instead hired a collection attorney. That debtor has done himself a tremendous disservice when he ends up having to pay, not only the $200.00 debt, but also additional filing fees, service of process fees and attorney fees.