What Happens After Your Collection Attorney Collects Your Money in New York?


Whether you are freelancing or you own a company of your own, we have all had to deal with clients who never seem to pay on time. Situations like these can be especially frustrating about you put on hours of your time and work on their projects. In circumstances such as this, you can get the help of a New York collection attorney to recover what you are owed. 

Who is a debt collection attorney?

Your debt collection lawyer will basically be a lawyer who, with the help of legal strategies, will recover your debts from clients or consumers who are not paying. They will also help out by filing and completing legal paperwork on your behalf. In case the lawsuit has to go to trial, they will also represent you in court.

What happens after collection?

You must be wondering about what follows after your attorney has collected what you are owed. To give you a clear idea, the following steps are expected:

Deposit Location:

The money that has been recovered will then be deposited in the next 48 hours in the client’s trust account. This account is also known as the Lawyers Trust Accounts (IOLA) account. It is an account at a commercial bank in New York. In case you need to know more, kindly get in touch with a lawyer in New York. 

Interest Accrual:

After the deposit of the money, the fund will gather some interest which will be directed to New York State as a part of a fund. 

Check Clearance:

You should expect a 10-day hold period, after which the money will be cleared. This is to ensure that no fraudulent activities take place.

Remittance Timing:

Your remittance will be delivered after the recommended clearance period. Expect the payment to be made by check or wire transfer to the listed creditor, whether an individual or a business, as mentioned in the initial papers or lawsuit.

Final thoughts:

A debt collection attorney can prove to be beneficial in a number of circumstances. In case you feel like the entire situation is going to court and a legal judgment is required, it would be best to get professional help, as it will increase your chances of winning the case. In addition, the help of an attorney may be required to draft a persuasive demand letter.