Critical Legal Skill in Hard Times: Collections

As law firms tighten their belts in tough economic times, clients are taking a similar approach to their own finances.

So collecting outstanding legal fees may not be easy, experts say, recommending that law firms focus on this issue long before the end of the year, reports the National Law Journal.

However, a kinder, gentler approach can speed the process—and pay dividends in the long run, even if it means getting a bit less money up front, says consultant Ed Wesemann of Kerma Partners.

Cutting legal fees to encourage prompt payment can be good business, especially if the partner who brought in the fees might be looking to make a lateral move after the year ends, he says. "Once a lawyer leaves, it's much harder to collect."