[fsk]

For one contract, I did a couple hours of work and never got paid. It isn't worth the hassle to try and collect, so I just wrote it off as a loss and a learning experience.

Even with a written contract, as an individual freelancer it probably isn't worth your time and money to lawyer up and try to collect.

There's only one way to make sure the bill never gets too big. Once the amount owed reaches a certain amount, refuse to do any more work until you get paid. Ideally, you're working on an arrangement where you get paid every 2 weeks. Then, the most you can lose per client is 3-4 weeks' salary.

[chrisBob]

One contractor I worked with recently (hardware design) billed every month or $4k which ever came first. This works well, and keeps everyone aware of how costs are adding up.