What is the "Industry Standard" for late fees on past due legal fees?

Asked about 1 year ago - Houston, TX

Our office is looking into what a reasonably accepted rate to charge for past due accounts would be. We, of course, would have to put this into the initial contracts as well but since we are a sole practitioner firm (Probate/Family Law) we need to know what is considered reasonable. 12% ? 10% ?

Attorney answers (3)

  1. Brian W. Erikson

    Pro

    Contributor Level 18

    1

    Lawyer agrees

    1

    Best Answer
    chosen by asker

    Answered . Both rates are acceptable. You could set out a base rate followed by a higher default rate if the client failed to pay after notice.

    Good luck.

  2. Steven John Clausen

    Pro

    Contributor Level 16

    1

    Lawyer agrees

    1

    Answered . I am not aware of any industry standard. Although you label the amount as a later fee, it appears to be an interest charge and you do not want to violate the usuary laws. 12% would seem reasonable.

  3. Alan James Brinkmeier

    Contributor Level 20

    Answered . One or two percent

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

29,748 answers this week

3,172 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

29,748 answers this week

3,172 attorneys answering