Whether you can collect attorney’s fees from a debtor in the event of a contract dispute typically depends upon how your contract or loan was written. A New Jersey commercial collections attorney can explain to you that if the contract provides for an award of attorney’s fees in the event of default, you may be able to recover all or a large sum of your fees. In the absence of such language, you may be unable to automatically get back these costs.
Attorney’s Fees Provisions in a Contract Explained by a New Jersey Commercial Collections Lawyer
In most cases, the payment of attorney’s fees should be included in the loan or contract. The parties’ should determine before a dispute whether attorney’s fees will be paid in the event of a dispute. In the event that the parties’ do not want to be responsible for paying attorney’s fees, this should also be included in the contract. This way, there is no ambiguity if a dispute later arises and the parties make a claim for fees. If the contract does not explicitly include an attorney’s fees provision, a court may not necessarily order one of the parties to pay.
Court Discretion in Awarding Attorney’s Fees Explained by a New Jersey Commercial Collections Lawyer
In the absence of a contract provision, a court may have discretion to order attorney’s fees if there is a relevant statute, regulation or other court rule. A judge will typically examine all the facts and circumstances of the failure to pay to determine if attorney’s fees are warranted. The judge may also have discretion to determine the exact amount that should be awarded, meaning that a creditor may not be able to recover 100 percent of your attorney’s fees all the time.
Contact a New Jersey Commercial Collections Attorney
If you have any questions about recovering attorney’s fees from a debtor, contact an experienced collections attorney. You can discuss the specific details of your case with an attorney at Snelllings Law LLC by calling 973.265.6100.