If you have been injured due to another person’s fault or negligence, you might be wondering how to afford a personal injury lawyer. The truth of the matter is that most people just can’t afford the hourly fees charged by lawyers, which is why many personal injury attorneys offer a contingency fee arrangement.
Here, we’ll guide you through:
- What is a contingency fee agreement?
- What is the average contingency fee?
- What is included in a contingency fee?
- How is a contingency fee calculated?
What is a contingency fee agreement?
A contingency fee agreement is a financial arrangement in which your lawyer only gets paid if you win your case. Instead of charging upfront fees, your lawyer takes a percentage of your settlement or court award if you win the case. This means that if you lose, you won’t owe your lawyer any fees.
What is the average contingency fee?
The average contingency fee charged by lawyers in personal injury cases is one-third of the settlement proceeds. This means that the standard percentage is around 33% of the total amount, but this can vary depending on the facts of the case, the jurisdiction, and the particular law firm representing you.
However, if your case goes to trial, the percentage can increase up to 40 percent.
What is included in a contingency fee?
A contingency fee covers your lawyer’s fees, but it does not cover other case costs and expenses. These expenses may include collecting and copying medical records, court filing fees, court reporter fees for deposition transcripts, hourly fees for expert testimony, and investigation costs.
How is a contingency fee calculated?
In a contingency fee agreement, your lawyer will deduct their fee from your settlement payment. For example, if your settlement is $50,000 and you have agreed to pay your lawyer 35% for contingency fees, your lawyer will deduct $17,500 from the settlement. Additionally, if your lawyer incurred $4,500 in case costs, this amount will also be deducted from your settlement. This leaves you with the remaining settlement money of $28,000.
Before entering into a contingency fee agreement, you should really try to understand all the terms and conditions agreed upon between you and your attorney. This should include the financial arrangement for reimbursing necessary case costs incurred by your lawyer after the recovery is received.
The Takeaway
A contingency fee arrangement is a beneficial way to get legal representation for your personal injury case if you can’t afford hourly fees. However, before you enter into one, make sure to clarify with your attorney all the terms and conditions of the agreement, including any caps on the fee percentage, to avoid surprises down the road.
If you are currently in the process of pursuing a personal injury case with a contingency fee attorney, you may find yourself facing financial strain due to your injury. For this reason, legal funding can be useful to help you cover your expenses and relieve some of the financial burden you are dealing with. With legal funding, you can access the cash you need to pay for your medical expenses and other bills during the settlement process. If you’re interested in learning more, contact Baker Street Funding, a legal funding company that helps you get financial assistance from your accident in as little as 24 hours.
Apply for lawsuit funding today.
