Confessions of a Laid-off Lawyer

Just Your Average Joe Blogging Away His Debt—In One Year or Less

Archive for December 16th, 2009

Consulting My Paycheck

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Total Black: $66.71
Total Red: $230,428.77

Another contract attorney and I got to talking today about legal consulting work.  He told me about a friend of his who suggested he help out a third person who had been having difficulty collecting on a promissory note.  This third person had loaned ten thousand dollars to another person, who also happened to be an attorney, and he was not paying and now wasn’t even returning her calls.  Upon hearing from his friend about this woman’s matter, he didn’t feel particularly adept in handling it so he passed along the name of another attorney she might call, also a friend of his.  Sometime later he met up with that friend and asked about the outcome of the woman’s debt collection efforts.  His attorney friend told him that there was nothing he could do to help the woman because the promissory note she had was usurious.  She put in a 10% interest rate.  And if a lawyer had tried to collect on the note, my co-worker’s attorney friend informed him, that lawyer would have been subject to sanction by the court for attempting to collect on a usurious debt—akin to loan-sharking.  What makes this story so noteworthy?  My co-worker and I would have never thought to even consider the interest rate.  Ten percent didn’t seem all that high to me given that credit cards can legally charge up to 30% on your purchases.  His story represented to me the dangers accompanying legal consulting work. Keep reading . . .