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 provide legal services, they may offer you a custom quote directly. If they cannot, Debitura automatically shares your case details with qualified attorneys in the relevant jurisdiction, who can then submit quotes through the platform.
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.
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 escalation and get quotes 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.
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. If the costs seem too high relative to the potential recovery, you can decline all quotes. Your case will then close, or you may choose to continue monitoring for voluntary debtor payment.
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.