If you have been injured in an accident, you may be entitled to compensation for your medical bills, lost wages, pain and suffering, and other damages. However, hiring an attorney can be expensive. That’s where contingency fees come in.
A contingency fee is a type of fee arrangement in which your attorney only gets paid if they are able to recover money for you. If your case is unsuccessful, you do not owe your attorney any fees.
Contingency fees are common in personal injury cases because they allow people who have been injured to get the legal representation they need without having to worry about upfront costs. Read on to learn more:
How Contingency Fees Work
When you hire a personal injury attorney on a contingency fee basis, you will typically agree to pay them a percentage of your recovery, usually between 33% and 40%. This percentage is set out in a written agreement that you sign before your attorney begins working on your case.
If your case is settled out of court, your attorney will receive their fee from the settlement amount. If your case goes to trial and you are awarded damages, your attorney will receive their fee from the damages award.
In some cases, your attorney may be able to recover their fees from the defendant’s insurance company. However, this is not always possible.
The Benefits of Contingency Fees
There are several benefits to hiring a personal injury attorney on a contingency fee basis, including:
- No Upfront Costs: You do not have to pay your attorney any fees upfront. This can be a huge benefit, especially if you have been injured and are unable to work.
- Increased Motivation: Because your attorney only gets paid if they are successful, they have a strong incentive to fight for your case and get you the best possible outcome.
- Access to Experienced Attorney: Contingency fees make it possible for people with limited financial resources to hire experienced personal injury attorneys.
The Drawbacks of Contingency Fees
There are also some drawbacks to hiring a personal injury attorney on a contingency fee basis. Let’s take a look at a few of the most common:
- You may not recover as much money. Because your attorney is taking a percentage of your recovery, you may not recover as much money as you would if you were paying by the hour.
- You may have to pay more in the long run. If your case goes to trial, your attorney’s fees will be higher than if it were settled out of court.
- You may not be able to get the attorney you want. Some attorneys only take cases on a contingency fee basis, so you may not be able to get the attorney you want if you are paying by the hour.
Should You Hire a Personal Injury Attorney on a Contingency Fee Basis?
Whether or not you should hire a personal injury attorney on a contingency fee basis is a decision that only you can make. However, if you have been injured in an accident, it is highly advisable to at least speak with an attorney to discuss your legal options. An experienced personal injury attorney can help you understand your rights and options, and they can fight for you to get the compensation you deserve.
Call (562) 206-1939 for a Free Consultation with a Long Beach Personal Injury Attorney
Your Injuries Are Personal to Me
With more than 30 years of experience in the legal field, attorney Michael D. Waks knows what it takes to hold negligent and reckless parties liable for their actions. If you were seriously hurt through no fault of your own, the Law Office of Michael D. Waks will protect your best interests and advocate for your rights at every stage of the claims process. Call (562) 206-1939 or fill out our Contact Form to schedule a free initial consultation with a personal injury lawyer in Long Beach.