Imagine you’ve been in an accident and got hurt because of someone else’s negligence. You might wonder how you will pay for a lawyer to help you get the money you deserve. Many people worry about the cost of hiring a lawyer, especially when facing medical bills and other expenses.
Most personal injury lawyers work on a contingency fee basis. This article will explain contingency fee arrangements, how they work, and why one might be the best option for you if you’re considering hiring a lawyer.
What is a Contingency Fee Arrangement?
A contingency fee arrangement means you only pay your lawyer if they win your case. If your lawyer agrees to take your case on a contingency fee basis, you don’t need to pay them any upfront fees. Instead, your attorney’s fees will be a percentage of the money you receive from your settlement or verdict. Typically, this percentage ranges from 30% to 40%.
This arrangement helps people struggling financially hire a lawyer after an accident, allowing them to focus their financial resources on immediate needs like medical care and rehabilitation.
Why Do Lawyers Use Contingency Fees?
There are several benefits to using a contingency fee arrangement. Under a contingency fee arrangement, any accident victim can hire a lawyer and seek fair compensation. Additionally, lawyers working on a contingency fee basis are motivated to win because that’s the only way they get paid. Victims also don’t have to worry about paying legal fees until they have received their settlement/court award.
How Contingency Fees Work
Here’s an example to help explain how a contingency fee works:
Let’s say that you were in a car accident. Your lawyer agrees to take 33% of the settlement or court award. If your case settles for $90,000, your lawyer will receive $30,000 (33% of the settlement amount), and you will get $60,000 (the remaining amount). This settlement will help you cover costs like medical bills and lost wages.
Other costs might be associated with your case. These could include court fees, costs for gathering evidence, or expert witness fees. Before you sign any agreement, you should always ask your lawyer to explain how these costs will be handled and whether they will be deducted before or after the contingency fee is calculated.
Discussing Contingency Fees With Your Lawyer
Here are some good questions to ask when discussing a contingency fee agreement with your lawyer:
- How much is the contingency fee percentage, and are there any situations where it might change?
- What other expenses might arise during the case, and how will they be handled?
- Will these additional expenses be deducted before or after calculating attorney’s fees?
- What happens if the case doesn’t go as planned or doesn’t result in a settlement?
With these questions, you will understand what to expect from a contingency fee agreement.
What a Lawyer Can Do for You
When a lawyer agrees to work on a contingency fee basis, they will take on many responsibilities to help strengthen your case. You can rely on your lawyer to:
- Gather evidence and review records
- Handle communications with any parties involved in the case
- Calculate your damages
- Negotiate with insurance companies
- Take your case to trial if necessary
Your attorney will aim to ensure you receive the most favorable outcome under the law after being wronged by another party’s negligence. Reach out to a personal injury attorney today to schedule a free consultation.