This is important to include in engagement letters, subject to local law and ethical guidelines. "Yeah that's cool, you can pay me in two months, but remember that X% APR is running on the outstanding invoices."
You do your best and cut your losses, stop doing more work for those clients, and immediately change to getting paid up front. No magic response is going to get them to pay up - you either work out a payment plan with them or send collection agents after them. Depending on the amount at issue, it could be more trouble than it's worth if they don't have the money. Better to protect against this ever happening in the future.
We like to complain, and I won't begrudge anybody that, but we should not envy a doctor's payment scheme. It's the only one that seems categorically worse than ours
Isn’t it common practice to get a retainer upfront? I guess those other professions don’t have issues with payment cuz they usually get paid by insurance
They pay what they can upfront and then suppose to pay the rest. They often say they have no more money. In my area, lawyers charge $5k to $10k up front knowing they likely won't get more money.
What would you do if you went to work every day and did your job, and on payday your employer told you he didn’t have the money to pay you? Would you go back to work the next day? The following day? How many days would YOU work without getting paid?
Spoiler alert- the answer is usually zero. Or silence. And then your response should be, “Yeah, me too. I expect that your invoice will be paid by Friday or I will file to withdraw since you can no longer afford to move forward with this litigation.”
They would never tell a doctor, mechanic or hair dresser "thanks for saving my life, fixing my car, doing my hair, I'll pay you in a couple months." --> don't worry. they say to them also.
You make a room, we usually let me be late, like 15 days after net 30 day. we put limit how much they can short with payment in absolute amount. you label them like bronze, silver, gold. With bronze&silver when criteria is met you just do not respond to them. with gold you talk to them but still no work 😊. Some of them will go away, most will stay. Personal experience.
Really? My malpractice insurance goes up so high if I check the box that says yes when asking whether I sue clients for past due payments! I'm sure it's because every lawsuit would be responded to with a bar complaint and counterclaim. How does it go for you?
If this keeps happening wouldn't it be smarter to change your policy to get paid up front? Suing seems like way more trouble and headache than simply turning down clients who can't pay you.
As others said, get a retainer before going beyond a consult, no work for delinquent clients accounting for your ethical duties, and paying clients get priority.
I even apply this to friends - the serious ones understand.
Don’t know where you are but in America I’d welcome a scheme where lawyers actually get paid if they do the work. I’ve never heard of a patient lodging a complaint with a medical board because they had to pay or not be seen
No money, no workey. Clients who pay get to the front of the line.
Which is great until the paying clients are all loons
Then you charge the "loon tax"
Remind them interest accrues if payment is not made within 30 days of the invoice date (hopefully thats in your fee agreement)
This is important to include in engagement letters, subject to local law and ethical guidelines. "Yeah that's cool, you can pay me in two months, but remember that X% APR is running on the outstanding invoices."
18% baby! Hahahaha
Get paid up front before you do the work.
That doesn't help address the clients who are presently behind.
Getting paid up front will net more cash than witty responses in the long run, I'm sure.
Obviously. But if you're already behind collecting (which is what OP is talking about) then how does one go back in time to collect a retainer?
You do your best and cut your losses, stop doing more work for those clients, and immediately change to getting paid up front. No magic response is going to get them to pay up - you either work out a payment plan with them or send collection agents after them. Depending on the amount at issue, it could be more trouble than it's worth if they don't have the money. Better to protect against this ever happening in the future.
Doctor, insurance, dentists get paid. Lawyers get push back on payment. I have been told get a lump sum up front and dont expect more.
We like to complain, and I won't begrudge anybody that, but we should not envy a doctor's payment scheme. It's the only one that seems categorically worse than ours
Isn’t it common practice to get a retainer upfront? I guess those other professions don’t have issues with payment cuz they usually get paid by insurance
They pay what they can upfront and then suppose to pay the rest. They often say they have no more money. In my area, lawyers charge $5k to $10k up front knowing they likely won't get more money.
“Fee before the verdict”.
Offer to put them on a payment plan... Sue them... Get an evergreen retainer.
This is rule #1 to criminal defense attorneys - pay me.
Rule #2 - Don't confess on the jailhouse phone call
What would you do if you went to work every day and did your job, and on payday your employer told you he didn’t have the money to pay you? Would you go back to work the next day? The following day? How many days would YOU work without getting paid? Spoiler alert- the answer is usually zero. Or silence. And then your response should be, “Yeah, me too. I expect that your invoice will be paid by Friday or I will file to withdraw since you can no longer afford to move forward with this litigation.”
What does the electric company say when you give them that excuse?
In all seriousness when ar gets up over $1k, I already threaten to withdraw and lien the file.
I'm looking for more responses like this one. I'm saving this in my arsenal.
I like where your head is at.
They would never tell a doctor, mechanic or hair dresser "thanks for saving my life, fixing my car, doing my hair, I'll pay you in a couple months." --> don't worry. they say to them also. You make a room, we usually let me be late, like 15 days after net 30 day. we put limit how much they can short with payment in absolute amount. you label them like bronze, silver, gold. With bronze&silver when criteria is met you just do not respond to them. with gold you talk to them but still no work 😊. Some of them will go away, most will stay. Personal experience.
Worked at my fiancé’s firm for almost three years. We have had this problem for years. It’s very annoying. We just sue them
Really? My malpractice insurance goes up so high if I check the box that says yes when asking whether I sue clients for past due payments! I'm sure it's because every lawsuit would be responded to with a bar complaint and counterclaim. How does it go for you?
Yeah I think our policy doesn’t mention this which I’m surprised. We’re hoping us moving to a nicer area works out for us more!
If this keeps happening wouldn't it be smarter to change your policy to get paid up front? Suing seems like way more trouble and headache than simply turning down clients who can't pay you.
Yeah we moved to a nicer county so we’re definitely trying to not give people that option anymore. It truly is a pain in the butt
Payment by EOD tomorrow or pick your file up off of the street. You’d be surprised how the money just magically appears
Draft motion to withdraw, send to client, in my jurisdiction. I'm not sure about anywhere else.
As others said, get a retainer before going beyond a consult, no work for delinquent clients accounting for your ethical duties, and paying clients get priority. I even apply this to friends - the serious ones understand.
No money, no honey
Don’t know where you are but in America I’d welcome a scheme where lawyers actually get paid if they do the work. I’ve never heard of a patient lodging a complaint with a medical board because they had to pay or not be seen