Law Firms Race to Collect Year End Billings [Video]

Via LawCrossing.com:

At year’s end, white-shoe law firms race to collect the bulk of the year’s client fees by the end of December.

This year is different though, with a number of law firm managing partners worried that the current recession will make the job of collection even tougher.

Most law firms bill every three months, or even every six months, which is why the payments take so long to come through. Law firms typically use traditional methods of collection, such as calling clients and reminding them to pay with the partner involved often making the phone calls.

Many merger and acquisition deals fell through in Wall Street’s downfall, which makes it likely that some clients will balk at high fees for deals that never got done.

– Martine Beerman

• Two Thirds of Law Firms Expect Lower 2009 Revenues; 51% to Terminate Staff
• Judge Questions Dewey & LeBoeuf’s $600 Per Hour
• ABA: Law Firms Working on Collapsed M&A Deals May Never Get Paid
• Trenton Votes Not to Pay Law Firms
• Third Quarter Report from Citi’s: Robust Collections, Slowing Demand

Posted by Erik Even on December 29, 2008. Filed under Law Firm News,Legal News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry