Our Model: KP purchases receivables from law firms and pursues the collection process utilizing all available collection techniques including filing formal motions in court and, when necessary or advisable, filing new collection lawsuits directly against the debtor. By purchasing the receivables outright before the legal process begins, we remove the stigma of the billing law firm suing its own clients. Our ownership of the receivable also allows us to utilize better collections practices than available to standard collection firms that are compensated on a fee structure.
The Typical Client: Our model has proven particularly helpful to family law attorneys. It is frequently the case that family law attorneys are unable to withdraw from a case and are left with substantial billings to collect at final judgment. In these cases we ensure a proper and timely charging lien has been filed, and we follow the case to ensure fees are appropriately dispersed at final judgment. In certain instances we will file a Motion to Intervene in the family law case to ensure the attorney’s fees are collected.
The Process: KP will meet with the CFO or controller of the law firm and review past due receivables. We initiate a formal review of the past due client utilizing available public records and try to assess the financial capability of the client that culminates with the assigning of an internal score. We then enter into a formal purchase agreement to purchase the recoverable receivables. KP then initiates the collection process utilizing account specific strategies and finally distributes collected funds according to the terms of purchase agreement.
Advantages: We believe Kreye Partners offers several advantages to law firms:
1) The law firm can focus on future and current billings rather than long overdue collections. We understand and utilize collection strategies ranging from soft to the full press. We have an in house attorney that specializes in cost-effective collections and understands the necessary filings that culminate in judgments. Further we have experience locating assets and collecting on judgments.
2) The law firm removes the stigma of suing its own clients. Our purchase agreement puts Kreye Partners in position to utilize all legal remedies.
3) The law firm further insulates itself from any potential claims of liability under the FDCPA or state statute due to any argument that the collection agency has committed violations and the law firm is, therefore, also liable under principal/agent theories.
4) The law firm bears no out of pocket cost of collection. Kreye Partners fronts all collection costs and bears these costs should our efforts yield no success.
5) Client Confidentiality and attorney-client privilege are strictly maintained.
“After selling our company we were approached by many well known investment advisors seeking our business. There offerings seemed so much the same. We turned to our trusted advisors at KreyePartners and found they asked the simple questions noone else cared to ask. We are comfortable with our investment plan and enjoy the quarterly meetings as we discuss our life ambitions rather than todays hot investment.”