Some Clients Have Unusual Payment Preferences

One of the things that associate attorneys do not usually need to deal with — and can be a pain in the neck for partners and self-employed lawyers — is securing payment from clients. Generally, law firms can improve their chances of getting timely paid by making it easier for clients to submit payments and ensuring that invoices are generated at the close of every month so that balances do not grow. However, some clients just have unusual payment preferences and lawyers need to contend with such preferences if they wish to do business with such clients.

Payment In Person

Most clients pay attorneys by bank transfer or by sending a check. In recent years, fewer clients mail checks since it is usually easier for clients to initiate bank transfers. However, some clients prefer to pay attorneys by check in person, usually at the client’s office. I am not sure why some clients prefer this method of paying attorneys. Perhaps clients like to know they are getting personal attention from their lawyer by paying attorneys when they see them in person, or perhaps a personal appearance shows dedication that a client wishes to reward with payment.

Over the years, I have had several clients who prefer to pay for legal services in person. I generally do not mind this arrangement so long as the client is located close to my office so it is not too much of a hassle for me to visit the client.  I once had to take nearly half a day to visit a client for payment and return to my office. This arrangement was too much for me, so I stopped agreeing to be paid by this client in person. However, if a client is located near a lawyer, getting paid in person is not a bad arrangement, especially since I have personal experience of checks being lost in the mail.

Drips And Drabs

Sometimes clients cannot pay all of their outstanding balance, but they wish to make some payment to a lawyer. Over the course of months or years, clients can accumulate huge balances with law firms, and lawyers may not wish to continue working for clients unless the balance is, at least, substantially paid off.  Because of these circumstances, it is not uncommon for clients to pay lawyers small amounts over time.

In my experience, I have had clients who accumulated large balances, but wished me to continue working on their files.  The clients generally paid a small sum each month, and I would continue working on new matters for the clients depending on my workload. Ultimately, receiving something from a client is better than receiving nothing, so being paid in drips and drabs might be advantageous for some lawyers.

Payment Other Than Money

Some clients may not wish to pay some or all of their outstanding balance in money. Rather, these clients may wish to pay attorneys in goods or services that relate to the client’s business since they do not have the money to fully pay a lawyer. Over the years, I have been offered artwork, clothes, and other types of goods or services related to the client. I have never taken a client up on these offers since I am unsure how I could split anything other than money with my partner. However, I know that some lawyers have such arrangements with clients.

In any event, being a lawyer is a tough hustle, and it can be more difficult when clients have unusual payment habits. However, in the right circumstances, lawyers should accede to such payment preferences to collect fees from clients.

Jordan Rothman is a partner of The Rothman Law Firm, a full-service New York and New Jersey law firm. He is also the founder of Student Debt Diaries, a website discussing how he paid off his student loans. You can reach Jordan through email at jordan@rothman.law.

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