Hi
We post all debt recovery costs (both fees and disbursements) to a nominal ledger office account called “Debt Recovery Fees.” This helps keep them separate from the original client matter.
In some cases, debt recovery is unsuccessful, so this approach avoids having to write off additional billed disbursements on the client matter.
If the debt recovery is successful, we first allocate the recovered funds to the aged debt invoices on the client matter. Any recovered debt recovery fees are then transferred back to the Debt Recovery Fees nominal ledger.
