When you see or hear advertisements for personal injury attorneys, they often tell you that you only pay them if you win your case. This arrangement is possible because of a contingency fee, where you agree to pay the lawyer at the outset of your case. With this fee structure, you can afford to get an experienced personal injury on your side as long as you commit to pay them from the proceeds of your case, should you receive any.
Nothing should stand in the way of getting a legal fighter in your corner when you need it, and there should be no concerns about affordability or how you will keep paying a lawyer before your case concludes. Your primary concern is dealing with the insurance company and defeating its efforts to cost you money. You can do that most effectively with the help of a personal injury attorney; thus, you should know you are taking no financial risk when hiring one.
A lawyer can provide valuable guidance and support throughout your case. They will carefully review the details of your accident and injuries, gather evidence, and build a strong case on your behalf. They will also handle all communications with insurance companies, protecting your rights so no one can exploit you. A personal injury attorney is particularly important when dealing with insurance adjusters who may try to minimize the value of your claim or deny it altogether.
If you’ve been injured in a motorcycle accident caused by someone else’s negligence, seek medical attention immediately, then consult an experienced Tupelo motorcycle accident lawyer to protect your rights.
You Have Stretched Finances from the Costs of Your Accident Injuries
When you have suffered an injury in an accident, you are dealing with a catastrophe on many fronts. On top of your physical injuries, you are facing bills that may be coming due before you receive your settlement check. Even if your health insurance company is covering your care, you may still owe money in the form of your deductible and copayments. If you have suffered a severe injury, your cost share is likely considerable, and you are figuring out how to come up with the money to pay your expenses.
At the same time, your accident injuries may affect your ability to work. If you cannot work, you cannot earn money to pay your bills. It still affects your earnings even if you miss your job to attend doctor’s appointments. Needless to say, you will have to deal with many financial difficulties.
A personal injury lawyer is the last thing you may have money for during this challenging time. Besides, you may hesitate to invest money in your case if there are uncertain chances of success and fear returning from your case empty-handed. The good news is that the personal injury legal system should ease all of these fears.
Other Kinds of Attorneys May Bill You During Your Case
When you hire other kinds of lawyers, such as a divorce or criminal law attorney, they expect you to pay them hourly. You have to come up with money at the outset of your case in the form of a retainer to get them working for you. Then, your attorney will send you bills while your case is pending, charging you by the hour. Once you exhaust your initial retainer, you must replenish it by sending another one, and you will keep doing this for the duration of your case. Thus, if you do not have the money, you may be unable to get legal help. However, it is best not to let your perceptions of these other kinds of lawyers influence how you view the need for legal assistance in a personal injury case.
The Law Wants You to Get Help from an Attorney
A personal injury attorney works for you on an entirely different basis. The legal system recognizes that you are going through a tough time financially, and it also understands that there are uncertain chances of success in your case. Nevertheless, the legal system wants you to get the help you need for financial compensation. Nothing stands between you and a personal injury lawyer, even if you do not have the money.
The system is blind to your finances, and it treats every single personal injury victim in the same way. It eliminates the burden of expensive attorney fees upfront, making legal representation more accessible to those who might be unable to afford it otherwise. This arrangement not only levels the playing field but also ensures that justice is not limited to the wealthy.
How the Contingency System Works
Needless to say, a personal injury attorney does not work for you for nothing; they are professionals, and they need to pay their bills. However, how they work for you is entirely different from other lawyers.
Your personal injury attorney will work for you on a contingency basis. According to the dictionary, contingency means:
“something liable to happen as an adjunct to or result of something else.”
In your personal injury lawyer’s case, their fee comes as a contingency only when something else happens. Here, what needs to occur is that you win your case by receiving a settlement check or prevailing in front of a jury in court. Then, your personal injury attorney will get paid for their time and services.
You Will Agree to the Contingency Fee at the Beginning of Your Case
When you speak to a personal injury attorney during a free initial consultation, you will decide whether you want to work with them. If you hire an attorney, they will send you a representation agreement to sign. This agreement is a contract between you and the personal injury attorney, and it will govern the terms of their representation. You and your lawyer will agree beforehand on the representation contract, and an attorney cannot add or change anything after you both sign it.
One of the key parts of the representation agreement is the contingency fee that the lawyer will receive. Usually, there are two separate aspects to this fee:
- Your personal injury attorney will receive a percentage of your settlement check, should you receive one.
- If your case goes to trial, your personal injury lawyer may receive a slightly higher percentage because they are taking on more risk of preparing your case for trial and advocating for you throughout the legal process.
Your Attorney Gets Paid According to the Percentages in the Agreement
It does not matter how much time the personal injury attorney spends on your case. They have the right to the exact percentages specified in the agreement if you receive money for your case. Negotiating a settlement may take well over a year, involving mediation and laborious negotiations with the insurance company. Your personal injury lawyer gets the same percentage they would receive if your case had reached a quicker settlement. They cannot get more money if the case is more complex than anticipated at the outset.
A contingency fee puts your attorney squarely on the same side as you financially. They already have an obligation to provide you with diligent and responsive legal representation as part of their professional obligations. Their success and whether they get paid depends on the outcome of your case, and they have worked for you for free if you do not receive compensation. Moreover, a personal injury lawyer cannot charge you for anything that the representation agreement does not clearly specify.
Your Attorney Must Have Reasonable Contingency Fees
Your personal injury attorney cannot just charge you any figure they want. Even though a representation agreement is a contract that you both agree to sign, the rules of their profession govern your attorney, and these rules prohibit unreasonable fees. For example, if a lawyer wanted to take 60 percent of your settlement as a contingency fee, that is likely unreasonable. Contingency fees are roughly one-third of your settlement, give or take a few percentage points. You should also consider the quality of the personal injury lawyer and not just the amount they propose as a contingency fee.
Your Lawyer Should Want to Take Your Case
The contingency fee system means that a lawyer must decide whether they want to work with you. Since their financial situation is also on the line, a personal injury attorney may not wish to accept a case that appears to be a long shot or the facts and law are not in your favor. On the flip side, if you have a strong case, many attorneys may want to accept it because there is a higher likelihood that they may get paid. You can expect to answer many questions about the facts of your case as well before a lawyer will agree to accept it.
Your Lawyer Gets Paid Directly from Your Settlement
If and when you win your case, the money you receive gets deposited into your personal injury lawyer’s escrow account. Before receiving your money, your lawyer must pay anyone who may have a claim to your funds, including health insurance companies and medical professionals who have liens. Then, your personal injury lawyer will deduct the amount of their contingency fee and receive payment for their role in your case. There is never any money from your pocket to pay the lawyer. You can go through a lengthy personal injury case without ever having to write a check to your attorney.
If you do not win your case, your financial obligation to your lawyer ends. They have invested time and resources into your case and come away without getting paid, which is the nature of the risk they take when they accept a case on a contingency basis. You will not end up with a hefty bill at the end of the case, even when you do not receive money yourself.
Contact a Personal Injury Lawyer to Discuss Your Case
If you have not already contacted a personal injury attorney to discuss your case, now is the time to do so. The initial consultation is free; you lose nothing by speaking to a lawyer. With their experience, you can focus on recovering from your injuries while they handle the legal aspects of your case.
As you can see, you are taking no financial chances when you choose to get legal help. A knowledgeable personal injury lawyer is invaluable in pursuing an accident claim or lawsuit. Insurance companies may try not to pay you anything for your case by denying your claim or reducing the size of your settlement by partially blaming you for the accident. They certainly will not offer you the full amount of money you deserve, even if you know the actual value of your case. You need an experienced advocate on your side to fight for you when you need it in the face of a difficult insurance company.
You may have more money in your pocket than you would have gotten on your own, even after paying the personal injury attorney their contingency fee. Research has continuously found this point true; thus, you should never hesitate to hire an attorney for your case. You may cost yourself a considerable amount of money if you do not. Your personal injury attorney will perform many critical functions in your case that you cannot do on your own, both due to your constraints and lack of knowledge.
The contingency fee system aligns with your and your attorney’s interests. It incentivizes them to work diligently, explore every possible legal avenue, and strive for the best outcome. Your attorney’s payment directly depends on the success of your case, which motivates them to fight vigorously on your behalf. It ensures they will do everything possible to maximize your recovery or settlement.
A contingency fee arrangement is a valuable option for individuals seeking legal representation without the financial burden of upfront fees. It allows you to have experienced legal professionals fighting for your rights and seeking justice on your behalf while you dedicate time to your recovery. If you need legal assistance, consider exploring the possibility of a contingency fee agreement to ensure that the legal system works for you.
