I find this a difficult situation. I know that with the litigatious culture in the US, lawyers practically need to be involved in every aspect of society, but I would really prefer if we could interact normally in good faith without involving lawyers in everything.

In Netherland, this actually works. I've been working for my current client for two weeks now and the contract has only just been signed. We can do a lot in contracts, but I can't accidentally sign myself away into slavery. I can't be expected to work for no pay when I'm not the one who fucked up.

And in this climate, $25k outstanding balance is not that unusual; I invoice monthly, and the client usually has a month to pay. So with $10k invoices, by the time the next invoice goes out the door, it could be $20k. Though in a jurisdiction with less legal structure and protection, I can imagine monthly invoices would be way too risky. But even then, if your invoices, are bigger, you can still easily get into this situation.

But again, it strongly depends on where you live. What's totally reasonable in one place, could be insanity in the next.