When you’re owed a significant amount of money—$25,000 or more—the last thing you want is to waste time on ineffective strategies. Yet, that’s precisely what many creditors do when they opt for contingency debt collection arrangements. These deals might seem like a good idea at first glance: you don’t have to pay upfront, and the lawyer only gets paid if they recover the debt.


However, the reality is often far less rosy. In fact, contingency debt collection can be a colossal waste of time and money, leaving you at the end of the line when it comes to getting paid. If you’re serious about collecting what’s owed to you, it’s time to rethink your approach and consider hiring a dedicated debt collection attorney on a fee basis.

Contingency arrangements might appear attractive because they seem low-risk—you only pay if the lawyer recovers your money. But what happens when they don’t? The truth is that many contingency lawyers will promise you the moon and deliver nothing but excuses months later. The harsh reality is that most creditors who rely on contingency lawyers end up with nothing. Why? Because the lawyer’s incentive to work hard on your case diminishes when they have no guaranteed payment. They might take on 100 cases, but only focus on the 10 that are sure winners. The rest? They receive minimal attention, often relegated to a demand letter or an occasional phone call—efforts that are unlikely to yield results.

In the meantime, your debtor’s other creditors, who hired aggressive, paid collection attorneys, are getting paid. By the time your contingency arrangement fizzles out, your debtor’s assets have been depleted, leaving nothing for you. It’s a vicious cycle that leaves you frustrated and out of pocket, with your debt still unpaid.

If you’re owed serious money, it’s time to get some skin in the game. Hiring a debt collection lawyer on an hourly basis, particularly when you’re owed $25,000 or more, can be significantly more effective. While contingency arrangements might seem like a way to avoid upfront costs, the long-term benefits of paying a lawyer to aggressively pursue your case far outweigh the initial expense. A dedicated attorney will write demand letters, file lawsuits, and use every legal tool available to recover your debt—actions that a contingency lawyer may not take without a guaranteed payoff.

Hourly legal representation ensures that your case receives the attention it deserves. Your lawyer is motivated by your payment, not by the slim chance of recovering a percentage of your debt. This approach often leads to faster, more favorable outcomes, putting your money back in your pocket sooner rather than later.

Contingency fee arrangements are not just frustrating for clients; they are equally challenging for attorneys. If a case settles quickly and a significant amount of money is collected, clients may feel that the attorney took an unfair share of the recovery. On the other hand, if the case drags on with little to no recovery, the attorney may feel that they have wasted their time and money on a losing battle.

This frustration is compounded by the fact that contingency lawyers often have to juggle multiple cases, only focusing on those with the highest likelihood of success. The remaining cases, including yours, may languish with minimal effort and attention. This approach not only reduces the chances of recovering your debt but also extends the time you spend waiting for results that may never come.

Many creditors are misled into believing that contingency collection lawyers will invest their own money to recover a debt for a percentage of the recovery. However, this is far from the truth. Contingency arrangements are a gamble, and the odds are not in your favor. The lawyer is essentially betting on your case with their own resources, hoping for a windfall if they succeed. But would you be willing to gamble your savings on such long odds for a stranger? Probably not.

The harsh truth is that only about 10% of contingency cases work out profitably for the lawyer. For the remaining 90%, the client walks away with nothing, while other more aggressive creditors who didn’t rely on contingency arrangements have already been paid. By the time your contingency contract ends with no results, your debtor’s assets have been exhausted, leaving you empty-handed.

One of the most significant downsides of contingency debt collection is the time you lose. While you’re waiting for your contingency lawyer to deliver results, your debtor’s other creditors are taking aggressive action and getting paid. By the time you realize that the contingency arrangement isn’t working and decide to hire a pay-to-pursue attorney, it may be too late. Your debtor’s assets and cash flow may have already been depleted, leaving nothing to satisfy your claim.

Fraudulently Diverting Assets

This wasted time not only reduces your chances of recovery but also increases your frustration and stress. Debt collection is already a challenging process, and contingency arrangements often make it even more difficult by delaying effective action.

At the end of the day, most debt collection cases are better handled by paying for legal services upfront. While it might seem costly initially, this approach often leads to better, faster results. A dedicated attorney who is compensated for their time and effort will work diligently to recover your debt, using every legal tool at their disposal. They will treat your case as a priority, not as a long-shot gamble.

Moreover, an ethical and honest attorney will assess your case realistically and tell you if it’s worth pursuing. If the chances of success are slim, they will advise you accordingly, saving you time, money, and further frustration. This straightforward approach is far more effective than the empty promises of contingency arrangements.

While this article has highlighted the many pitfalls of contingency debt collection, there are rare circumstances where it might be appropriate. For example, if you’re owed more than $25,000 and genuinely cannot afford to hire a lawyer, a contingency arrangement might be worth considering. However, this should only be an option if there is a good chance of success and if you can help the lawyer identify appropriate assets or cash flow that can be pursued.

In such cases, it’s essential to have a frank discussion with your lawyer about the risks and rewards of a contingency arrangement. Make sure you fully understand the terms and have realistic expectations about the potential outcomes.

Contingency debt collection arrangements often result in wasted time, frustration, and little to no recovery. For debts of $25,000 or more, hiring a debt collection lawyer on a fee basis is more effective and ensures your case gets the attention it deserves. This article outlines the pitfalls of contingency arrangements and highlights the benefits of proactive legal representation.

If you’re serious about collecting a debt of $25,000 or more, it’s time to get proactive and hire a dedicated debt collection lawyer on a fee basis. Contingency arrangements might seem like an easy way out, but they often lead to wasted time, frustration, and little to no recovery. By investing in hourly legal representation, you can take control of your debt collection efforts, ensuring that your case receives the attention it deserves and increasing your chances of success.

If you’re ready to get serious about collecting your debt, contact Valerie L. Kramer, an experienced debt collection attorney in Orange County, California. With a commitment to honest, ethical legal representation, Valerie can help you recover what’s owed to you. Call (714) 395-5669 for a free phone consultation and take the first step towards getting your money back.