Can you double your bill when the client doesn't pay? If not, what can you do ethically to collect your bill? Tips for lawyers on collecting accounts receivable.

1. Doubling Down on Your Bill When
the Client Doesn’t Pay
Posted on 02/15/2016
Can youdouble down on yourbill 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

2.  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.
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