| How
much will it cost to hire an attorney? |
| Before
you meet with the attorney, ask about fees. |
Retainer
The word “retainer” can mean two things.
One is a regular sum of money (e.g. $1,000 per month) to keep
him or her available for any necessary legal service.
Some businesses pay attorneys that way. “Retainer”
can also mean a deposit or down payment, held in trust, to be
applied against hourly fees earned later. The second is
the more common meaning. |
Hourly
fee
Most lawyers charge by the hour. However, not
all lawyers charge the same hourly rate, so it is critical that
you ask what their rate is and those of their support staff
such as paralegals or on-staff experts. The hourly rates
of lawyers vary widely depending on the type of work and their
level of experience. Even within an individual law firm
hourly rates vary widely with more experienced attorneys charging
more per hour than more junior attorneys. |
Fixed
fees
These are popular ways to pay for routine legal work,
such as simple wills, bankruptcy filings or misdemeanor or traffic
infraction representation and real estate closings. You
may be charged |
| |
| What
does it mean if an attorney advertises “Pay only if you
win”? |
| Contingency
fees:
This means the attorney will accept your case but will
not receive any fee unless your case is successfully completed.
The amount of their compensation is a percentage of your
award. It is important to ask the attorney what their percentage
is before and after legal expenses are subtracted. By law, when
an attorney is retained under a contingent fee agreement the
“contingency” does not cover the expenses.
This means that the client must always be responsible for case
expenses regardless of the outcome. The attorney is permitted
to advance these expenses but must be reimbursed at the end
of the case. |
| Percentages
applied in various cases:
The maximum fee that can be charged by law for a personal injury
case is 1/3rd of the net recovery (the gross recovery less expenses).
This maximum fee applies to all cases except medical, dental
or podiatric malpractice cases. In those cases attorneys
are limited to a sliding scale starting at 30% of the net recovery
for the first $250,000 recovered and reducing to 10% for amounts
over $1.25 Million Dollars. For other matters such as
Workers’ Compensation, Social Security Disability and
Supplemental Security Income claims, fees are set by the judge
or by the law. |
| Written
Fee Agreement: You
should always have a written fee agreement with your attorney.
This can be a document you actually sign, or a letter from the
attorney setting forth the fee arrangement. Under most
circumstances, attorneys are actually required to provide you
with a written fee agreement. |
Tips
to keep costs down:
- Be
upfront and honest with your attorney.
- Bring
copies of all relevant documents with you to your meetings.
- Focus
on business and be straight to the point.
- Write
your questions down in advance and keep them brief.
|
| |
What
if I cannot afford a lawyer?
There
are a number of legal service agencies that provide free legal
representation to people of modest means. Legal
Service Provider Information.
|
