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Contact Home Return to Your Business Debt Collection for LawyersDebt collection for lawyers is important. It's not uncommon for law firms to have substantial amounts of professional fees outstanding. Depending on the nature of the work your law firm undertakes, it is also common for a percentage of your debtors to have a low sense of obligation when it comes to paying lawyers bills. This may be because people have wrongly assumed that their bill is covered by legal aid. Sometimes, the mindset of the client is that they resent paying for a lawyer in a situation where they feel they were the aggrieved party. Whatever the issue, law firms often have to write off a proportion of professional fees. Just like any other business though, if accounts are not paid, this eats into your profits and puts pressure on cash flow. A letter of engagement is a good idea. This should include your terms and conditions, with the right to add collection fees to overdue accounts. (I won't go into huge detail about the exact wording ...... you're the lawyers !). Interestingly, several of the law firms we act for choose not to add collection charges and are happy for us to take our fee out of what we collect without the debtor being charged for this. I guess they don't want to be perceived as being too heavy with their clients. At the end of the day that's your call.
If you would like to discuss how Total Debt Solutions helps lawyers with their debt collection, click here.
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