What is a No Win No Fee Structure in South Africa?

When you’re facing the challenge of collecting unpaid debts, hiring a lawyer might seem daunting, especially when you’re unsure about the costs. The good news is that  Burger Huyser Attorneys, particularly in debt collection cases, offer a “No Win No Fee” arrangement. But how much do no win no fee lawyers take when they successfully recover your debts? 

Understanding the “No Win No Fee” model is key to knowing what to expect when engaging a lawyer for debt collection. In essence, no win no fee means you won’t have to pay any legal fees unless the lawyer successfully recovers the debt for you. This payment structure eliminates the risk of incurring substantial costs without achieving the desired result. But how much do no win no fee lawyers take as payment when they successfully collect your debts?

Typically, no win no fee lawyers charge a percentage of the amount recovered. This is a performance-based fee structure, so if the lawyer wins the case and recovers the debt, they will take a predetermined percentage as payment for their services. The percentage charged usually ranges from 10% to 25% of the recovered debt, depending on factors like the complexity of the case, the amount of debt, and the location of the debtor.

For instance, if you’re owed R100,000 and the lawyer recovers the full amount, they could charge anywhere between R10,000 and R25,000, depending on the agreed percentage. This fee is typically taken from the funds collected, so you don’t need to pay anything out of pocket unless the debt is successfully recovered. This payment model offers great peace of mind for creditors, as it allows you to take legal action without any financial risk.

Factors That Influence How Much No Win No Fee Lawyers Take

While the general range of lawyer fees for debt collection is between 10% and 25%, several factors can influence the exact amount. These include:

  1. Debt Amount: Larger debts typically involve more work and resources to collect, so the lawyer may charge a higher percentage. In contrast, smaller debts may attract a lower fee since they are easier to recover.
  2. Complexity of the Case: If the debtor is evasive, in financial distress, or disputes the debt, the lawyer may need to invest more time and resources. As a result, the fee may be higher to reflect the additional effort required.
  3. Debtor’s Location: If the debtor is located in a different region or country, the process of debt collection may become more complicated and require additional legal action, which could increase the lawyer’s fees.
  4. Speed of Recovery: Some law firms may offer tiered fee structures based on how quickly the debt is recovered. For example, they may charge a lower percentage if the debt is collected quickly, but a higher percentage if it takes longer to resolve.
  5. Additional Costs: Keep in mind that no win no fee lawyers might also charge for additional costs that arise during the process, such as administrative fees, court filing fees, or costs for hiring private investigators. These costs may be added to the percentage the lawyer charges.

The Benefits of No Win No Fee Debt Collection Lawyers

Opting for a no win no fee lawyer for debt collection offers several benefits, especially for businesses that might be wary of the financial risk associated with traditional legal fees. Here’s why this model is so advantageous:

  • Reduced Financial Risk: Since you only pay if the debt is successfully recovered, you are not at risk of losing money on legal fees if the case is unsuccessful.
  • Expertise in Debt Recovery: Debt collection lawyers are specialists who understand the legal process involved in recovering outstanding payments. They can apply strategies that may not be obvious to a business trying to collect debt on its own.
  • Access to Legal Resources: Professional lawyers have access to tools, databases, and investigative resources that can make the debt collection process more effective and efficient. This is particularly useful if the debtor is uncooperative or difficult to track down.
  • Improved Chances of Success: Debt collection lawyers are skilled negotiators who can often reach agreements that might be difficult for you to achieve on your own. Their knowledge of the legal system allows them to apply pressure and pursue tactics that can increase the likelihood of successfully collecting the debt.

Contact Burger Huyser Attorneys for Debt Collection Assistance – We Only Get Paid if You Win!

If you’re struggling to collect unpaid debts, a No Win No Fee lawyer at Burger Huyser Attorneys can help you recover what you’re owed with minimal risk to your business. Our experienced team specializes in debt collection and we’re committed to providing you with a solution that works. We understand that every case is unique, which is why we offer tailored services that align with your specific needs.

With a No Win No Fee arrangement, you can confidently take the legal steps necessary to recover debts without worrying about upfront costs. We only get paid if we recover your money, and our fees are clear from the start. Don’t let unpaid debts hurt your business any longer.

Contact Burger Huyser Attorneys today for a consultation and let us help you recover your money, risk-free!

Contact Burger Huyser Attorneys, and book a consultation.

To speak to one of our experienced attorneys in South Africa for immediate assistance, contact us on the numbers below:

Randburg call 061 516 6878; Roodepoort call 061 516 0091; Sandton call 064 555 3358;  Pretoria call 064 548 4838;

Centurion call 061 516 7117; Alberton call 061 515 4699; Bedfordview call 061 536 3223

DISCLAIMER: Information provided in this article does not, and is not intended to constitute legal advice. READ MORE