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5 Ways to Collect Unpaid Fees from Clients

July 6, 2012 | Posted in : Unpaid Fees

A recent FindLaw.com post, “5 Ways to Collect Unpaid Fees From Clients” by Andrew Lu of Top Floor Legal reports that a recent survey found that most attorneys only get paid for a fraction of the hours they work during the day.  The reason weren’t given as to why the attorneys don’t get clients to pay up.  So, what can attorneys do to collect unpaid legal fees from clients? 

Here are five steps from Top Floor Legal that attorneys can take when looking to get paid:

  1. Ask the Client to Pay:  Passive aggressiveness does not work.  Let your client know that he or she owes you money.  Oftentimes, your client may not know or may have forgotten that they owe you.
  2. Have Someone Call the Client:  If you are not comfortable with confrontation over money, you can hire a third party bill collector to call the client.  Outside pressure may convince your client to pay up, and can signal to your client that you’re serious.
  3. Understand Your Client’s Situation:  Talk to your client and understand why he or she cannot pay.  If there is a momentary financial crisis, you may forebear from collecting for a few weeks or agree upon a partial payment plan.
  4. Draft a Formal Demand Letter:  If you can’t get a hold of the client of if the client is not willing to work with you, you may want to draft a formal demand letter asking for payment.  This can be the basis of any legal action.
  5. File a Lawsuit:  You don’t want to be in the business of suing your clients, so this is definitely a last resort.  But if your client owes you a significant sum and refuses to pay, you may be left with no resort but to seek legal action.