Debt collection / firm Q - I have several large captive clients who are looking to start collecting/garnishing on a ton of small $$ judgments/past due balances. What are the typical fee structures for collecting things like this - % of recovery? If I alternatively set up as a collection agency and referred all judgment collections out to other attorneys, what is the typical cut a collection agency would take?

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My firm's collections department charges a 20-25% contingency fee, plus expenses. 20% is for those clients with a large volume of work. It doesn't not matter if the case comes to us pre or post judgment, we still charge 25%.

We do not at as a collection agency and refer cases, so I don't know the fee there. There are a lot of additional regulations that apply to collection agencies, over and above everything you have to do just to collect a debt.

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