Interest on fees
Posted: Tue Feb 02, 2010 4:13 pm
I send out a statement every month to all clients on payment plans showing the balance due (you can set up Quickbooks to do this). I also include a cover letter reminding them (1) to try to make a payment of at least $200 per month; (2) eligibility for Chapter 7 is not guaranteed if their financial circumstances change while they are getting ready to file; and (3) the automatic stay is not in place, so creditors are not prohibited from continuing lawsuits/collection activity until the case is filed.
If I don't hear from them or receive a payment for 90 days, I send a letter "closing" their file and terminating representation, but I will reopen (and credit the fees paid) if they do ever contact me in the future.
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> What are people doing when their Ch 7 clients take forever to pay, even though the retainer has a clause that they must be paid in full within 6 mos.? Some of my clients are really broke so it seems kind of nasty, but it might make them pay. Curious how others are dealing with this situation, which I'm sure most of us have.
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> Vicki L. Temkin Law Office of Vicki L. Temkin 15030 Ventura Blvd., Ste. 19-780 Sherman Oaks, Ca 91403 Ph:(818) 501-4658 /Fx:(818) 501-0903
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