What Does Contingency Fee Arrangement Mean?
One of the biggest concerns that clients have before first working with an attorney is how they will pay for their services. This is a legitimate concern because different lawyers accept payments in different ways. Some attorneys require their payment upfront, while others are willing to wait until the case is finalized and accept payment in the form of a contingency fee arrangement instead. Before you start looking for lawyers focused on car accident cases, take the time to learn about contingency fee arrangements and how you can use them in your favor to get excellent legal service without spending money upfront.
What is a Contingency Fee Arrangement?
A contingency fee arrangement is a payment agreement between a lawyer and a client. In the agreement, the attorney provides legal services in exchange for a portion of the final recovery in the end. Different attorneys ask for a different recovery percentage, but the average is 30% of the total amount recovered from the case. Before you agree to go with a contingency fee arrangement, always get the total percentage in writing and compare that percentage to be sure you’re getting a good value. Some attorneys will charge much more than others, so it’s important to know what the going rate is for your case.
Is a Contingency Fee Agreement the Right Option?
If you’re short on money, but you need legal help, a contingency fee agreement is a payment option worth pursuing. There are some challenges to using this type of payment option, though. It’s important to verify that the attorney will accept that form of payment. This isn’t always the case, so it’s important to verify before assuming that an attorney will work without payment upfront. It’s also important to consider whether a contingency fee arrangement is a good value for you. If you can afford to pay for legal help up front, and your case is likely to pay out a high amount of money, it’s often more affordable to pay a flat fee for legal help. Consider flat legal fees as well as contingency-based pricing agreements and then decide which is the best option for your needs.
Why a Contingency Fee Arrangement isn’t Always Allowed
Attorneys normally only accept a contingency fee arrangement when they have a clear case with the potential to pay out a large amount of money. Injury cases are a good example of this. If you’ve been injured in a car accident or another type of accident, lawyers will be more likely to make a contingency fee arrangement for you.
Once you understand the different fee structures offered by attorneys, it’s easier to decide the best way to pay for services and how you should proceed from there. If you have a complicated legal case that’s going to take time to build, and you don’t have thousands of dollars to spend for help initially, finding an attorney that’s willing to offer you a contingency fee agreement is likely the best option for you. Talk with local attorneys to learn more about your options, and use that information to help you decide where to go from there.