Litigation is simply another business investment decision:
- Return on investment (more here)
- Expected value
- Not about emotions, fairness, or justice
- We compare litigation outcomes to voluntary payment proposals when present
- We rarely recommend litigation when we think there is less than a 50% chance of collecting
Key components we evaluate:
- Out of pocket costs
- Contingency fees
- Legitimacy of debtor disputes
- Possibility and validity of counterclaims
- Time required to collect
- Likelihood of collecting
The chart in the section Comparing Payment Plans and Settlements to Litigation shows how we evaluate the alternatives after collecting all the information described above. The infographic below provides a visual representation of our thought process.
