Lawyer's Purchase of Accounts Receivable from Client
A lawyer may purchase accounts receivable from a client if, as required by Model Rule 1.8(a), the transaction is fair and reasonable to the client; its terms are disclosed to the client in writing in a manner that can be reasonably understood; it is consented to by the client in writing; and the client is given a reasonable opportunity to seek independent counsel. When the accounts receivable may be subject to a dispute between the client and the client's debtors, the lawyer must make additional disclosures and comply with Rule 1.7 or 1.9 before acquiring the accounts receivable and pursuing collection of them.
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