Can I Collect Interest
Can I Collect Interest Attorney Fees In My Collection. Case I also want to take this to address location and question I ve been receiving frequently from clients When suing to collect a debt, can we collect attorney’s fees and interest on late payments from the debtor in addition to the principal.
The answer is straightforward. While the Courts add statutory interest to unpaid judgments, the only way to recoup attorney’s fees or additional pre-litigation interest from the debtor is to memorialize your entitlement to the same in the terms of your contract.
Of course, the choice to update the terms of the form contracts you use in your regular course of dealing is a personal business decision. You may not want to scare or alienate potential customers and clients. I am not making a recommendation on doing so one way or the other. I just want everyone to be on the same page as to what’s necessary should you wish to be able to collect attorney’s fees and additional interest from debtors via court judgments in the future.