Ask HN: Freelancer's Dilemma – Client Won't Pay Despite Clear Agreement

Hacker News Discussion ↗

Legal Options and Jurisdiction

  • Ask first if the client is solvent; if they can’t pay, litigation may be pointless.
  • Many mention small‑claims court as accessible, low‑cost, and lawyer‑free in some places, but:
    • Awards are capped.
    • Winning a judgment doesn’t guarantee collection; enforcement can be costly and time‑consuming.
  • Jurisdiction clauses matter: specifying your home courts can give leverage, but cross‑border enforcement is complex and may require re‑litigation or recognition in the client’s country.
  • In the UK, people mention statutory demands and even winding‑up petitions as strong pressure tactics.
  • Some suggest having a lawyer send a formal demand letter; the letterhead alone often prompts payment.

Contracts, Billing, and Risk Mitigation

  • Strong consensus: always use a contract; specify governing law, venue, payment terms, interest/penalties, and your right to stop work or revoke access on non‑payment.
  • Common structures:
    • 50% (or more) upfront, remaining tied to milestones.
    • Hourly billing with ongoing invoices.
    • Retainers / escrow accounts you draw down, replenished before continuing.
  • Several recommend being fully paid by 50–75% of project completion.
  • Some offer discounts for upfront payment; others use platforms specifically for payment protection.

Leverage and Technical Controls

  • Widely repeated rule: do not deliver final code, credentials, or server control until invoices are paid.
  • Keep demos on infrastructure you control; hand over production access only after full payment.
  • Some describe license checks or “kill switches” that disable systems when unpaid, but others warn this can be risky or escalate conflict.

Collections, Shaming, and Reputation

  • Options include debt‑collection agencies and invoice factoring; you lose a percentage but offload risk and hassle.
  • Merely threatening to sell the debt or involve collectors/credit bureaus often triggers fast payment.
  • Public shaming (social media call‑outs, emailing many people at the company, “walls of shame”) is described as effective by some but risky for defamation and your own reputation.
  • Naming and shaming within a private freelancer network/blacklist is suggested as lower‑risk.

Emotional and Practical Coping

  • Several emphasize mentally writing the money off after reasonable efforts, to protect focus and mental health; treat any later recovery as a bonus.
  • Others argue you have a “duty” to pursue bad actors (via legal or collection channels) so non‑payment remains costly for them.
  • Many stress learning from the experience: better client screening, upfront payments, smaller milestones, and clearer boundaries to reduce future exposure.