When to hire help.

When to hire a lawyer

• The judgment is large (generally $10,000 or more) — the attorney fee is worth it.
• The debtor has an attorney — you need someone who can match their legal arguments.
• You are dealing with bankruptcy — this is not a DIY area.
• You suspect fraudulent transfers — pursuing these requires litigation.
• You need to pierce the corporate veil.
• You are domesticating a judgment in a state whose procedures you are unfamiliar with.
• The debtor has filed a successful exemption claim you want to challenge.
• You've made errors in the collection process and face potential liability.

Contingency fee math

Many collection attorneys and agencies work on contingency — they charge a percentage of what they actually recover, not an hourly fee. This aligns their incentives with yours and eliminates your upfront cost risk. Typical contingency fees range from 25% to 40% of the recovered amount.

When evaluating a contingency arrangement, think about what you net, not what you gross. If a collection agency charges 35% and recovers $10,000, you receive $6,500 — better than nothing, and often better than spending your own time.

Cost-benefit check before you spend more

• What is the current balance of the judgment (including interest)?
• What is the realistic collectibility — does the debtor have assets?
• What will enforcement cost in time, fees, and professional costs?
• What is the expected recovery after all costs?

If the expected net recovery is less than the cost of collection, it may be wiser to wait — with a lien in place — for the debtor's circumstances to improve, rather than spending money on fruitless enforcement.