How expensive are lawyers? You can expect a major expense whenever you seek legal advice. Before you seek legal advice, you need to understand what kind of financial obligations you are tying yourself into.
Many people need to hire a lawyer at some point in their life. This can be for a simple consultation, contract, or a court case. By researching your lawyer fee before enlisting their services you can avoid being blindsided. Keep reading to learn more about lawyer fees.
Cost Factors
There are a variety of factors that determine how much a firm charges for its services.
You can connect with different law firms, such as watertownlaw.com, to shop around for a financial breakdown that works for you. By inquiring about these factors upfront, you can have the assurance that you are getting the best price for your services.
Fee Structures
All legal fines are billed out by a different metric. In many cases, services can be charged by a combination of these fee structures. These different fee structures include the following:
- Percentage
- Fixed or flat fee
- Hourly
- Contingent
- Success
- Pro Bono
Percentage-based fees are based on the settlement amount. Before taking a case, you and the firm will agree on a set percentage that the firm will pocket in the event of a win.
Fixed or flat fee services are typically used for simple routine services such as bankruptcy filings or trademarks. This means that you will sign on to an agreed-upon flat fee before you hire your lawyer. An hourly rate is also a common form of billing for law firms.
When it comes to larger cases, it is common for firms to offer contingent payment structures. This means that the lawyer will only be paid if the lawyer reaches the desired outcome or settlement.
Success payment structures are designed as a combination between contingent and hourly fees. This means that if successful, you will retroactively be charged for the hourly fees.
When a lawyer is offering their services at no charge to the client, it is pro bono. Certain firms specialize in pro bono work or ask for more pro bono work to be coming out of their younger staff.
Payment Methods
Hiring a lawyer can be a very hefty expense. However, there are different avenues when it comes time for payment. You may opt to use a bill, retainer, or payment plan.
Bills will be received at the end of the month and will carry 30 to 60-day payment terms. Retainers are a large lump sum that is transferred to the lawyer when you begin using their services.
Payment plans are agreed upon by the client and lawyer to give you the option of paying for legal services on a biweekly or monthly basis.
Understand Your Lawyer Fee
Hiring a lawyer can be an unexpected expense. That is why it’s essential that you have a strong understanding of the payment structures and payment methods before your hire someone.
Once you understand your lawyer fees and costs, you’ll be able to have a better grasp of how much you will be paying for legal services.
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