For many people, paying legal fees is the worst part of filing a personal injury claim or lawsuit. This is especially true if they cannot afford a lawyer per hour or even a flat fee. If you need legal assistance, you will be glad to know that you have several payment options and fee structures.
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This includes paying a contingency fee instead of a per-hour or flat rate. Whether dealing with a personal injury claim, family law matter, or business dispute, it will take a weight off your shoulders if you have a payment option you can afford.
Many personal injury and civil litigation Illinois lawyers work on contingency fee bases. It is, however, important to note that contingency fees can be as high as 40%, depending on your case. In this post, let's look into your options when it comes to paying legal fees and how you can find a payment structure that works for you.
Most Common Fee Structures in Illinois
Attorneys offer payment structures according to the amount of work that needs to go into a case. They may also base their fees on how many resources your case requires. Each payment method has its pros and cons. The one that will work for you is the one that suits your case and financial circumstances.
Contingency Fees
A contingency fee arrangement may work for you if you have a medical malpractice or personal injury claim. If you choose this structure, your lawyer will only get paid if they win your case or secure you a settlement.
The fee works out to a predetermined percentage of your final payout. Sometimes, it is 25%. Other times, it can be up to 40%, as mentioned.
Contingency Fee Pros
The best part of a contingency fee structure is that you don’t have to pay anything upfront. This makes legal services available to you when you need them the most.
It also means your lawyer will automatically work harder to win your case. Their payment depends on success, so they will do whatever they can to secure a settlement. Most importantly, this arrangement allows you to get the justice you deserve if another party’s negligence harmed you.
Contingency Fee Cons
The biggest downside of contingency fees is that you must pay a significant part of your award to your lawyer. You will also not likely be able to get a contingency fee arrangement for pursuing a criminal case. Contingency fee structures hinge on monetary recovery cases.
Hourly Rates
If your lawyer does not offer a contingency fee payment method, you may need to pay per hour. This method is common for complex cases. The more research and negotiations your lawyer has to do and facilitate, the more you will pay per hour.
If your case involves multiple court appearances, this will also be reflected in your hourly payments.
Hourly Rates Pros
The good thing about an hourly rate is knowing exactly what you are charged for. You will be aware of the amount of work that goes into each hour you pay for. Hourly billing will work best for you if your case is being drawn out and the amount of work needed is not always the same.
Hourly Rates Cons
The amount of work done on your case can also be a disadvantage when paying your lawyer hourly. If your case takes a long time to resolve, your hourly fees will quickly increase. This also means it will be difficult to predict how much you will have to pay for your case upfront.
Flat Fees
If you prefer a flat fee, you will pay a predetermined amount for a specific service. So, if you want a will drawn up, you will pay a specific amount upfront. If you want a lawyer to handle your divorce, you will also pay a set amount before they start work on your case.
Flat Fees Pros
A flat fee may be easier on your budget because you know how much you need to pay right from the start. If you need to save for legal services, you know how much to save. It is also true that lawyers may be more efficient when resolving your case if they are not charging by the hour.
Flat Fees Cons
Unfortunately, flat fees come with disadvantages as well. For one, a flat fee will likely only cover tasks defined upfront. If your case needs additional research or work, you must pay extra.
This means unpredictable or extensive cases are not best suited to this payment structure. Extended litigation or unforeseen twists and turns can mean much more money out of your pocket.
Retainer Fees
Your lawyer may suggest a retainer fee. This refers to an upfront payment that ‘holds’ the attorney’s services. As your lawyer continues to work on your case, they will bill against the amount you have already paid.
Retainer Fees Pros
When you pay a retainer fee, you have a guarantee that your lawyer will spend the right amount of time on your case. Retainers also cover routine legal services and disbursements, helping you to manage your overall costs.
Retainer Fees Cons
The problem with a retainer fee is that you may not have a lump sum to pay right at the start of your legal case. On top of this legal burden, you must pay more if the lawyer’s work exceeds the retainer's.
How Fee Structures Affect Your Total Legal Costs
With a contingency fee arrangement, the higher the percentage you pay, the less your net compensation. This could also mean you cannot cover all your expenses. If you opt for hourly rates, get an estimate first. Your lawyer should be able to work out how many hours they would need to spend on winning your case.
Flat fees are best if you like predictability. But, if your case is likely to have complications, this might not be the best choice. Retainers may require a lot of replenishment if more work needs to go into your case over the long term.
Choosing the Payment Structure That Works For You
Ask the lawyer you want to work with about the nature of your case. Knowing how much work it will take, you should be able to make the best payment method decision.
As for estimates, read all fee agreements carefully. You can also compare lawyers and their fees before deciding. Furthermore, you should consider your financial situation and what you can afford to pay.
Lastly, it is not all about the payments either. You must ensure that your chosen lawyer has the expertise to handle your case. This will give you a fair balance between payments and your chances of winning.
