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Opinion 655

Question Presented

Is it permissible under the Texas Disciplinary Rules of Professional Conduct for a lawyer to sell accounts receivable owing by the lawyer’s clients to a collection company?

A Texas lawyer has clients (or former clients) who are delinquent in paying fees that have been earned. The lawyer proposes to sell those accounts receivable to a collection company for the payment of a percentage of the amount owed on the accounts receivable. The sale would involve the transfer or assignment of the ownership of the accounts receivable to the collection company after which the lawyer would no longer have any interest in the accounts receivable. 

Bluebook Citation

Tex. Comm. On Professional Ethics, Op. 655 (2016)