#2010/11-01 Collecting Attorney's Fees – Debt Forgiveness and Reporting to Regulating Agency

Ethics Committee Advisory Opinion #2010/11-01

By the NHBA Ethics Committee

ABSTRACT:

In an attempt to collect an unpaid bill, an attorney may not (a) threaten to or actually inform the Internal Revenue Service that the attorney has written off the account receivable and considers the unpaid legal fees a debt that has been forgiven, or (b) inform a regulatory agency that a client owes unpaid fees to the attorney.

ANNOTATIONS:

An attorney violates Rules 1.9 (Duties to Former Client) and 1.6 (Confidentiality of Information) by informing the Internal Revenue Service the attorney has written off an account receivable and considers that the unpaid legal fees are a debt that has been forgiven.
An attorney violates Rules 1.9 (Duties to Former Client) and 1.6 (Confidentiality of Information) by informing a regulatory agency that a client owes unpaid fees to the attorney.

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#2010/11-01 Collecting Attorney’s Fees – Debt Forgiveness and Reporting to Regulating Agency