Law firm collections
Collection agency for law firms with unpaid legal fees.
Unpaid client invoices are a common drain on law-firm cash flow. We match firms with collection agencies and collection attorneys experienced in professional-fee receivables, handled with the discretion your practice needs.
Collecting legal fees is different
A law firm collecting from a former client has to balance getting paid with its professional obligations. Before placing an account, firms commonly review:
- Confidentiality. Professional-conduct rules generally limit what client information a lawyer may reveal. Many jurisdictions allow disclosure reasonably necessary to collect a fee, but only what is necessary. Check the rules that apply to your firm.
- The engagement letter. The fee terms, interest, collection-cost and dispute-resolution clauses you agreed with the client.
- Fee-arbitration programs. Some state and local bars run fee-dispute programs, and in some places the client must be told about them before a fee suit. Check your bar's requirements.
- Malpractice exposure. Suing a former client for fees can prompt a counterclaim. Many firms weigh this before escalating.
- Consumer vs. business clients. Fees owed by an individual for a personal matter are generally consumer debts, so the FDCPA and state law govern how an outside collector can collect them. Fees owed by a company follow commercial-collection rules.
Options for unpaid legal fees
- In-house follow-up: statements, a call from the responsible attorney and a clear payment plan offer.
- Final notice: a firm deadline (see our final notice template).
- Collection agency: an agency experienced with professional-services receivables, which provides distance between the firm and the collection effort.
- Collection law firm: another firm handles suit and judgment enforcement, which some firms prefer to suing a former client themselves.
What to look for in a collection partner
- Experience with professional-services and law-firm receivables
- A professional tone that protects your reputation
- Clear contingency terms and trust-account handling of funds
- Willingness to limit the client information it needs to what is necessary
- FDCPA compliance for individual clients, and licensing where required
More detail is in our guide to collecting unpaid legal fees. See also find a collection law firm and B2B debt collection.
Related
- B2B debt collection guide
- Debt collection agency licensing
- Debt collection laws for businesses
- Free templates (DOCX & PDF)
Not legal advice. This page is general information, not legal advice, and laws vary by state and change over time. CollectionPlacement is a referral service, not a law firm or collection agency. Consult a licensed attorney about your situation.
How it works
Three steps to placement
One short form replaces calling a dozen agencies.
Tell us about the debt
Debt type, total balance, age, number of accounts and location. Takes about two minutes.
We match you
We review your file and introduce you to agencies or collection attorneys that handle your debt type, size and jurisdiction.
You choose and place
Compare terms (contingency rates, fees, reporting) directly with the partner and place only if it's a fit. No obligation.
Trust & compliance
How we approach compliance
FDCPA-aware
Consumer and medical accounts are only referred to partners that represent they comply with the Fair Debt Collection Practices Act, Regulation F and applicable state law.
Vetted partners
We check licensing/bonding where required, attorney bar status, and complaint history before adding a partner to our network.
No pressure, no obligation
Matching is free for creditors. You negotiate terms directly and decide whether to place.
Your data, handled carefully
We only share your file with the partners we introduce you to.
Frequently asked questions
Can a law firm use a collection agency for unpaid fees?
Generally yes, subject to the professional-conduct rules on confidentiality and any bar requirements such as fee-arbitration notices. Many firms review their engagement letter and bar guidance before placing an account.
Does the FDCPA apply to collecting legal fees?
If the client is an individual and the matter was personal, family or household in nature, an outside collector collecting the fee is generally subject to the FDCPA. Fees owed by a business client are generally commercial debts.
Should our firm sue the former client directly?
Some firms do, but many prefer an agency or another collection firm, partly to keep distance and partly because fee suits can draw malpractice counterclaims. Weigh the balance, the documentation and the risk.
How much does a collection agency charge a law firm?
Most agencies work on contingency, with rates that vary by the age and size of the balance. Confirm the rate schedule in writing.
Free, no obligation
Get matched with a collection partner
Tell us about your receivables. We'll review and introduce you to vetted agencies or collection attorneys suited to your debt type, size and state.