how to discuss fees and billing with a lawyer

If you are negotiating an hourly fee agreement, you can ask that the attorney bill at 6 minute intervals rather than the more standard 15 minute intervals. By establishing a 6-minute billing interval, an attorney who makes a 5-minute phone call does not get to bill for 15 minutes, or 1/4th of the attorney’s hourly rate.

Full Answer

Is hourly billing the best way to charge attorney fees?

Jun 20, 2012 · Call Lawyers Mutual for sample agreements and fee letters. Specifics to cover in your agreement. List the expenses the client must repay, such as filing fees, transcripts, photocopies, mileage and postage. State whether your fee in a contingent case if based upon the gross or net recovery. Explain when bills will be sent and payments are due.

What is the billing process for a law firm?

If you’re still unable to resolve a billing dispute after a conversation, it’s time to reach out to another party for help. Here are a couple of places to look: Your state bar association. Most state bar associations have an attorney fee dispute service. In most cases, the state bar will help you resolve your problem through a low-cost ...

How do lawyers get paid for their services?

Information on attorney fees, legal fees and billing options for our legal services. We accept cash, checks, major credit cards and debit cards. 678-393-8232 Hours: Monday - Friday 8:30 a.m. - …

What should I do if my attorney starts billing higher?

Dec 08, 2021 · In many cases, the law firm billing process looks something like this: The firm brings on a new client and opens its case. Billable time and disbursement fees/expenses are logged throughout the case. At the end of each month (or at the end of the case, if it’s a shorter case), bills and expenses for each client and case are put into a draft bill.

How to rate an attorney?

Hourly rates aren’t the best option for attorneys either. Hourly rates don’t allow your time to scale, and limit your time for other matters and opportunities. Charging an hourly rate means that your earnings will always be capped by your time. If you still want or need to charge by the hour, your rate should be based on a mix of the following: 1 Your expertise in the subject; 2 Competitive rates in your jurisdiction; 3 The type of case and matter; and 4 The type of client

What is sliding fee law?

Also known as a sliding-scale fee, this law firm pricing model is based on a client’s ability to pay, which is often determined by income and/or family size as taken from the Federal Poverty Guidelines. This means that what each client pays, whether hourly or as a flat rate, will be determined by their income, rather than you just charging your typical rate. So those with lower incomes will pay a lower fee, giving those clients who need legal services greater access to otherwise out-of-reach attorneys.

What is hourly billing?

Hourly billing is what most people think of when they think of attorney fees. However, this way of law firm pricing & fees is becoming antiquated and not as client-friendly. As technology progresses, clients expect more transparency and predictability in pricing from their attorneys. With hourly billing, clients may feel anxious about their legal bill because they don’t know what the final number will be. They could feel like the value they receive from your services is less than what they paid. Worse, your clients may view hourly rates as an incentive for you to be inefficient and take your time with their matters, causing distrust in your relationship with clients. Clients don’t really want to pay for your time, they want to pay for your help and the value you give them.

What does it mean to charge an hourly rate?

Charging an hourly rate means that your earnings will always be capped by your time. If you still want or need to charge by the hour, your rate should be based on a mix of the following: You can also use our hourly rate calculator to help you find the rate you need to charge.

What is flat fee?

Flat fees, also known as fixed fees, are pre-arranged total fees that are paid upfront before you complete work for a particular legal matter. For example, for standard DUI cases, drafting wills, bankruptcy, or other form based matters, flat fees may be attractive for both the client and the attorney because these sorts of matters usually have no surprises and no fee collection hassles.

What are the benefits of flat fee?

Another benefit to a flat fee arrangement is that they reward your experience and efficiency. If you’re especially experienced in a matter, you’re able to maximize your time and your clients will be happy to have their matter resolved efficiently. However, if you’re new to matters or to working under the flat rate model, it may be difficult to determine what amount you should charge beforehand. There could be a potential for reduced or negative profit margins if you’re charging with no previous experience guiding your pricing. However, as you do more work under this model, you’ll develop a better sense of what to charge and how to maximize your time.

What is capped fee?

In this pricing structure, a client will pay by the hour, but the number of hours you will work is capped at a predetermined limit. The client will pay either after the work is completed or when the capped time is met.

Hourly Fee

Hourly Billing, as the name suggests, means the law firm bills the client at a pre-defined rate for expenses and hours accrued in handling the case.

Flat Fee

Flat Fee Billing is appropriate for routine legal services where there is no litigation and the process is straightforward.

Contingency Fee

Contingency Fee Billing (also called a contingent fee) allow for a law firm to accept a percentage of any money awarded to the client. If the case is not successful, the client is not billed for the law firm’s time.

Mixed Fee

Mixed Fee Billing is basically a reduced hourly rate fee, plus a contingency percentage which is lower than the normal contingency fee percentage. This is a billing option not offered by every law firm.

Why don't lawyers pay their bills?

Given that 44% of legal firms say clients don’t pay their bills because they lack the funds to pay at once, according to the 2017 Legal Trends Report, offering payment plans can be a big help for ensuring your firm gets paid.

Why is billing important in law?

Billing is critical to the success of your law firm. And yet, for many law firms, billing clients and chasing down payments can still be one of the most time-consuming, repetitive, and dreaded parts of the job.

What is LEDES billing?

LEDES, or Legal Electronic Data Exchange Standard, is a standard format for electronic legal billing that uses specific format guidelines. It makes it easier for large organizations to handle large amounts of files and data, and assess invoices, as all they will all be coded in the same format.

Why is it important to have a billing policy in place?

To save your law firm valuable time and money, having a clear, standardized law firm billing policy in place is essential. It gives lawyers and staff something to refer to and keeps everyone in sync.

What is the ABA rule for billing?

When it comes to ethics and billing, clarity is key. Rule 1.5 of the ABA Model Rules of Professional Conduct states that a lawyer may not collect an “unreasonable fee” or an “unreasonable amount for expenses.” The ABA provides eight factors to consider when determining whether a fee is reasonable, including fees charged for similar legal services, the reputation of the lawyer, and any time constraints.

Is flat fee billing good?

If you’re able to accurately scope the amount of work required for certain types of cases, flat fees can be an excellent approach to billing. They create clarity on costs up-front, and are a form of value-based billing—meaning that you bill based on the value you provide to your client, rather than commodifying your time.

Why is it important to ask lawyers to use a specific system?

It’s helpful to ask lawyers to use a specific system, such as your legal practice management software, to conduct reviews electronically. This helps speed up the process and leaves less room for error; you can even use automation software.

What to do if you want to dispute a bill for any valid reason

What to do if you want to dispute a bill for any valid reason#N#1. Do not ever call to settle a bill or resolve a billing problem. Write a letter within 30 days of the date on the letter. Delay and it will be legally assumed that you have accepted the charges.#N#2.

What to write and where to send?

What to write and where to send?#N#1. Make sure you follow all instructions on the billing letter as to where it should go (person and address).#N#2. Make sure the letter has your name and address;#N#3. Captions are essential. List your name, account number, invoice number and amount separately.#N#4. If you dispute the entire bill - say so.

Reasons? I will give you reasons!

Reasons? I will give you reasons!#N#1. State your reasons for dispute in a bullet form. Avoid generalities. Stick to dates and facts. (e.g. The item you bill for has not been delivered" or "The services you bill for have not been provided"#N#2. If something was promised, state the date and the name - "On 11/11/2011 Ms.

Lawyer Billing: Flat Fee

When I was a solo practitioner, I used flat fee billing for almost all of my work. I did not lift a finger on behalf of a client until I had a signed engagement agreement and their check cleared. My engagement agreement stated that fees were earned on receipt so I could deposit it directly into my operating account and bypass the trust account.

Lawyer Billing: Flat Fee Plus

What I refer to as “flat fee plus” involves charging a flat fee for a project with a limited scope and then charging the client your hourly rate for any work performed beyond that. This is what I currently charge to file a trademark with the USPTO — a flat fee to do a trademark search and submit the application with up to $225 in filing fees.

Hourly Billing

This is the classic model that exchanges hours for dollars. I recommend hourly billing for any matter that involves an opposing party. We can’t control how much work we will have to do because of the opposition.

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How to write a contract for a lawyer?

A written agreement should include: 1 Retainer. If you must pay a deposit in advance (often called a "retainer"), the contract should state the retainer amount and when you must replenish it. 2 Hourly fee. The agreement should state the hourly rates for everyone who might work on the case; how often the lawyer will bill you; how much detail the bill will include; how long you have to pay the bill; discounts for early payment; penalties for late payment; and how to dispute a charge. 3 Contingency fee. In a contingency fee case, the lawyer takes a percentage of the client's winnings. The agreement should state the contingency percentage (some lawyers collect a higher amount if the case goes to trial) and the collection process. 4 Costs of suit. The agreement should also explain how litigation costs—such as court fees, fees charged by expert witnesses, private investigators, process servers or stenographers, copying costs, travel expenses, or messenger fees—will get paid. A lawyer in a contingency fee case might agree to front costs and get reimbursed if the client wins, but a client who loses has to pay costs back to the lawyer. Other attorneys require clients to pay these fees and costs as the case progresses.

What is a written fee agreement?

Some states avoid these problems by requiring written fee agreements (often called retainer agreements or representation agreements), and it's always a good idea.

Is contingency fee good?

From your point of view, a contingency fee is a good deal when the attorney must take a significant risk, but not so much when little risk is involved—unless you agree on a much lower percentage, of course. Avoid security interests.

Is a lawyer cheap?

You want a lawyer who knows the subject matter of your legal problem inside and out, charges reasonably, treats you with respect, and with whom you can communicate. Though no lawyer is cheap, you probably can find lawyers all over the price spectrum who can meet your needs.

How to dispute a bill?

State that you dispute the fees. Begin your letter with a clear statement that you dispute the fees you were charged. Identify the particular bill by its date, and list the specific items you dispute. If there is more than one item you want to dispute, you may want to format them in a bullet-point list.

What should be included in a fee agreement?

Your fee agreement should include details on how often you'll be billed, how costs will be computed, and the rates at which the attorney will bill for work completed.

How to write a letter to an attorney?

1. Use standard business format. Your word processing application typically will have a template you can use for writing business letters. Include your name and address as well as the attorney's name, firm name, and address where you're sending the letter.

Who is Jennifer Mueller?

Jennifer Mueller is an in-house legal expert at wikiHow. Jennifer reviews, fact-checks, and evaluates wikiHow's legal content to ensure thoroughness and accuracy. She received her JD from Indiana University Maurer School of Law in 2006.

How to Price Your Legal Services The Client-Centered Way

Types of Fee Agreements and Structures

• Hourly Rates
  Hourly billing is what most people think of when they think of attorney fees. However, this way of law firm pricing & fees is becoming antiquated and not as client-friendly. As technology progresses, clients expect more transparency and predictability in pricing from their attorneys. …

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Alternative Law Firm Pricing Models

How to Calculate Legal Fees and Manage Other Legal Costs and Expenses