Doubling Down on Your Bill When the Client Doesn’t PayPosted on 02/15/2016

Can you double down on your bill if the client doesn’t pay on time?

Absolutely not! Not a bad idea This must be a trick question

 

We’ve all been there.  Non-paying clients can be incredibly frustrating, especially if you went out of your way to offer a reduced rate or special payment plan.  But before you resort to punitive measures, take a moment to think it through.

A literal doubling of your fee is likely to be challenged as excessive. Review Oregon RPC 1.5.

Consider whether the proposed punitive action will make a difference.  Do you truly believe that doubling your fee will motivate the client to pay?

Collections can be a landmine of legal traps and pitfalls.

What Should You Do If the Client Doesn’t Pay?In the case of non-paying clients, it may be appropriate and necessary to withdraw. If so, take care to abide by your ethical responsibilities.  If you represent the client before a tribunal and must file a formal Motion to Withdraw, read and understand Oregon Formal Opinion No. 2011-185 – Withdrawal from Litigation: Client Confidences.  If you have any doubt about what you can or cannot tell the court, seek advice from the Oregon State Bar General Counsel’s office or contact a lawyer colleague who specializes in ethics defense.You should also consider ordering one (or more) of the free CLEs offered by the PLF on managing law firm finances:

50 Shades of Green: Building a Profitable Solo or Small Firm Practice Building and Maintaining a Profitable and Efficient Law Practice  Increasing Revenue: Updated Strategies for Attracting New Clients and

More Effectively Managing an Existing Client Base  Money Matters 

These CLEs will help you to:

Banish personal habits that cause you to under earn Identify profitable practice areas Analyze overhead, liquidity ratios, budget, turnover, and realization rates Establish effective billing practices Reduce accounts receivable Develop case and client selection skills to eliminate payment problems

Visit the PLF Website for details.  Select CLE > Past CLE.

[All Rights Reserved 2016 Beverly Michaelis]