What is legal action?
Legal action refers to debt recovery through formal legal proceedings. This can include filing claims in court, obtaining judgments, and enforcing those judgments through mechanisms like asset seizure or wage garnishment. It goes beyond the standard pre-legal collection phase, which focuses on negotiation, payment reminders, and payment plans without court involvement.
The Standard Debt Collection Agreement (SDCA) covers only pre-legal collection cases. Legal action requires a separate agreement between you and the collection partner who will handle the case.
Why it matters
Not all debts can be recovered through amicable means. When a debtor is unresponsive, disputes the debt, or simply refuses to pay despite repeated contact, legal escalation may be your best option for recovery. However, legal action involves additional costs and requires your explicit approval before any work begins. For an overview of how cases flow through these stages, see Case stages: pre-legal (amicable) vs. legal (escalation).
How it works
When legal action becomes an option
Legal escalation typically becomes relevant when:
Pre-legal collection efforts have been exhausted without payment
The debtor disputes the debt and you want to pursue the claim through court
The case type does not qualify for standard pre-legal collection (for example, breach of contract or property damage claims)
Your assigned collection partner recommends escalation based on their assessment
Who provides legal action services?
Legal action is handled by collection partners or law firms in Debitura's network. If your current collection partner can handle legal work, they send you a legal quote directly. Debitura's network of attorneys is used when your case had no partner assigned to it in the first place - it is not a way to bring in a second firm on a case an existing partner is already working.
When your current partner is the one offering the quote, you receive a single quote from them, which you approve or decline in place. There is nothing to compare and no winner to pick, and your case is not reassigned: it stays with the same partner, and its full history carries forward. For what the quote contains and how to respond, see Your collection partner sent you a legal quote - what to do.
All legal actions are conducted directly between you and the collection partner under a separate agreement. Debitura facilitates the quote process but is not a party to the legal engagement itself.
The quote process
Before any legal work begins, you will receive one or more quotes from partners who can handle your case. Each quote includes the partner's proposed pricing structure, which may be hourly rates, flat fees, success-based fees, or a combination (hybrid). The quote also describes the partner's approach and any expected costs. These fixed-price quotes ensure transparency and predictability for customers, as they are based on the specifics of the case and jurisdiction.
You can compare quotes and choose the partner you want to work with. Once you accept a quote, that partner is assigned to your case and can begin work immediately.
For step-by-step instructions, see How to request legal action on an existing case and How to compare quotes and select a winner.
What to expect: costs and pricing
Legal action costs are separate from the standard success fees that apply to pre-legal collection. The exact costs depend on the jurisdiction, case complexity, and the pricing model offered by the legal partner. Additionally, legal action typically involves upfront fees that fall outside standard no-cure-no-pay terms. Legal costs are assessed and quoted by the assigned legal partner, ensuring that they are tailored to the specifics of the case.
Common cost components
Legal collection typically involves several types of costs:
Attorney or partner fees: The collection partner's charges for their work, which may be hourly, a flat fee, success-based, or hybrid.
Court filing fees: Official fees required to file a claim with the court. These vary by jurisdiction and claim amount.
Service and process fees: Costs for formally notifying the debtor of the legal action.
Enforcement costs: If you obtain a judgment, additional costs may apply for enforcement measures such as asset searches or wage garnishment.
The specific amounts vary significantly by country and case type. When you receive a quote, review the cost breakdown carefully before accepting.
You decide whether to proceed
You are never obligated to accept a quote or proceed with legal action. This approval process ensures that you are fully informed about the potential costs and can make an informed decision about whether to proceed. What happens after you decline depends on where the quote came from.
Quotes from Debitura's network: when several partners have bid for your case and the costs seem too high relative to the potential recovery, you can decline all quotes. Your case will then close.
A quote from the partner already working your case: if the quote is a recommendation, declining it has no further consequence and the case simply carries on. If the quote is marked as required, declining it automatically pauses the case, and your partner is asked to either close it or continue with their current approach.
A quote from a single partner assigned to your case before work began: declining is final. There is nothing left to collect on, so the case is closed.
Legal costs and custom pricing agreements require your approval before any costs are incurred.
Where to find this in the platform
You can view quote requests and submitted quotes from your Cases page. Select the relevant case to see its current status, any quotes received, and options to accept or decline.