How Do Contingency Fee Arrangements Work?

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If you suffered injuries due to someone else’s negligence, you may be facing large medical bills, lost wages, property damage, and pain and suffering. Many people struggle with hiring an attorney because they believe they will have no way to pay for the legal fees out of pocket. However, many attorneys work on a contingency fee basis, which is when they only receive compensation after winning your case on your behalf. Contingency fees are a valuable way that a victim can still receive legal representation without paying an attorney upfront.

What is a contingency fee? 

A contingency fee  Is a fee that an attorney will collect only if there is a favorable result on behalf of the victim. This means that you will only have to pay your personal injury attorney if your personal injury case receives a monetary recovery or a settlement. In most cases, a personal injury attorney will take a percentage of the total amount of compensation of victim receives. Therefore, the only way your personal injury attorney will receive compensation is if you win your case. Understanding the truth about contingency fees is imperative to making the right decision for your case. 

What are the advantages? 

The advantage of hiring an attorney under a contingency fee arrangement is that you will never have to pay any costs upfront. Additionally, your attorney will be incentivized to work diligently on your case, as they will only get paid if they win your case on your behalf. Also, if you happen to lose your case, you typically do not pay your attorney for work that has been done. You should always check the contract between you and your attorney regarding the details of a contingency fee arrangement.

What are the disadvantages?

There are some disadvantages to a contingency fee agreement. In some cases, there is a chance that you might pay an attorney more than what their hourly fee would be with a contingency fee arrangement. This will largely depend on how long it takes the attorney to complete your case. In other circumstances, some personal injury attorneys will not take your case if they do not feel it is strong enough for you to win. 

Contact Us Today 

We would welcome the opportunity to visit with you regarding your personal injury case and how contingency fee arrangements work in practice. Contact one of our experienced attornies at Groth Law at (414) 768-2727 for a free consultation today.

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