Are the costs justified for the collection of a claim by a lawyer?
November 21, 2023 | 60,00 EUR | answered by Alwin Hohenwarter
Dear lawyer,
I have a question regarding the costs of recovering a debt through a lawyer. My name is Friedhelm Winterstein and I recently have an outstanding debt from a customer that has not been paid yet. I have already sent several reminders, but without success.
Now I am considering hiring a lawyer to recover the debt. However, I am concerned about the potential costs that may arise. I wonder if the costs of hiring a lawyer are justified and if there are possible alternative solutions to recover my debt.
At the moment, I am unsure whether I should take the risk of involving a lawyer, especially since I fear that the costs may be higher than the outstanding debt itself. Are there any other options I could consider to recover my debt without risking high legal fees?
I would be very grateful if you could provide me with your assessment on this matter and suggest possible solutions to successfully recover the outstanding debt without incurring unnecessarily high costs.
Thank you in advance for your help.
Sincerely,
Friedhelm Winterstein
Dear Mr. Winterstein,
Thank you for your inquiry regarding the costs of debt collection by a lawyer. I understand your concerns and would like to provide you with a detailed answer to your question.
First and foremost, it is important to know that the costs of hiring a lawyer for debt collection usually depend on the amount of the outstanding debt. In Germany, the Lawyers' Remuneration Act (RVG) regulates the fees that a lawyer can charge for their services. The fees are based on the value of the claim and the scope of the lawyer's work.
If you decide to hire a lawyer to collect your debt, you can generally choose between different cost models. In many cases, a fee based on the RVG is agreed upon, although the exact amount of costs may vary in individual cases. It is therefore advisable to discuss the costs with the lawyer in advance and possibly reach a fee agreement.
There are also alternative ways to collect your debt without immediately involving a lawyer. For example, you could try to collect the outstanding debt through payment orders or debt collection agencies. These options are usually cheaper than hiring a lawyer, but may not offer the same legal security.
Ultimately, the decision of whether to hire a lawyer depends on various factors, such as the amount of the outstanding debt, the relationship with the debtor, and the likelihood of success in a legal enforcement. It is therefore advisable to seek thorough advice beforehand to find the best possible solution for your individual concerns.
I hope that this information has been helpful and I am available for any further questions. Thank you for your trust and I wish you success in collecting your outstanding debt.
Sincerely,
Alwin Hohenwarter
