By Brian Plachta
Feb. 4, 2010
In response to the current economy, the 12-person law firm of Plachta, Murphy & Associates, P.C. (PMA) asked its business clients how it could help them through these tough times. Two primary concerns came to light: 1) help with collection of past-due account receivables and 2) establish an alternative pay arrangement, such as a flat fee.
These legal issues have become major concerns for clients. Many clients are hesitant to enlist the help of a law firm to collect past-due account receivables because they are concerned that the attorney fees could be in excess of the amount they are attempting to collect on a particular matter. The solution to this is simple. To meet emerging client needs, PMA, which specializes in business and corporate law, formed a new collection practice group in order to address these issues: Professional Collection Solutions (PCS), offering legal services on a flat-fee basis in connection with collections for clients.
Although some fields have been more significantly impacted by the negative economy than others, all businesses from manufacturers to physicians have similar collection needs and must abide by all collection laws. Both the Federal government and the State of Michigan have collection laws that must be taken into consideration when collecting past due account receivables.
Already poor financial situations for businesses can be made worse when there are past-due account receivables. A solution to offer flat fee services may very well help bolster confidence about taking action, as well as relieving some of the stress placed on business owners, their families, and their budgets.
Brian J. Plachta has been practicing law in Michigan since 1984. As a Grand Rapids native and the chairman of Plachta, Murphy & Associates, he brings a wealth of legal and business experience to the local community. PCS consists of attorney Brian J. Plachta, attorney Miles J. Murphy, III, and collection paralegal Amanda DeChamplain.