Learn What a Contingency Fee is and How it Affects Your Personal Injury Settlement

If you’ve been in a car accident, you’re probably feeling helpless. Finances are likely to be tight — and your stress level is high — due to pain and suffering, lost pay, and growing debts. How can you afford to hire a lawyer to help you get compensation for your injuries?

The good news is that there are no upfront costs at The Law Offices of Larry H. Parker. Instead, we work on a contingency fee basis, which means we only get paid if we are successful in obtaining funds for you. So, what is a contingency charge, and how does it vary from hourly fees?

Contingency fees

The most typical method of remuneration in personal injury claims is a contingency fee. It is a contract between a personal injury lawyer and his or her client that is written down. The lawyer promises to represent the client without charging any upfront costs in exchange for a share of the judgment, settlement, or award once the matter is settled.

A contingency fee agreement specifies how the lawyer will be compensated. This covers the proportion of the settlement or trial fee that the attorney will receive, as well as how expenditures are determined (i.e., before or after the percentage is calculated).

Most victims of vehicle accidents, bus accidents, slip and falls, and other sorts of personal injury claims can benefit from this type of fee arrangement. The client will not be required to pay any money up ahead or throughout the lawsuit. The costs and expenditures of the inquiry, as well as court costs and other fees, will be covered by the attorney.

If the customer is unable to recover any funds, he will not be charged any costs (but may still be responsible for some expenses, depending on the fee agreement). Because the attorney is only paid if the lawsuit is won, there is a stronger incentive for the lawyer to keep on top of the matter and seek an award vigorously.

Hourly fees

When a client agrees to an hourly charge, on the other hand, they will be compelled to pay the attorney as the case progresses — and they may also be asked to pay a retainer (a lump sum of money) up advance. The hourly price is agreed upon between the client and attorney, and the client is charged depending on the number of hours performed.

When you engage an attorney on an hourly basis, you’ll be paid for each phone contact, email, or appointment you make, as well as the time your lawyer spends working on your case. This form of fee arrangement works well for clients who can pay an attorney before they recover from their injuries, but it might be challenging for anyone who is out of work, has large medical expenditures, and requires continuous care.

A contingency fee agreement makes more sense than an hourly fee agreement for most accident victims, including motorcycle accidents, large rig collisions, slip and falls, and vehicle accidents. Each person must determine for themselves what will work best for them, and before signing anything, make sure to read the agreement well.

We never charge a fee unless we recover money for our clients at The Law Offices of Larry H. Parker. We encourage our clients to concentrate on recuperating from their injuries rather than worrying about how they will pay for their personal injury lawyer. Contact our office immediately at 800-333-0000 to book a no-cost, no-obligation consultation with one of our highly qualified attorneys.