There may be a time when you’ll need to hire a lawyer.
Whether you need to defend yourself in court or register a business, lawyers are the heroes and heroines who help us navigate the complex legal system.
But, of course, this noble service can come with a high price. But how exactly do you pay for a lawyer, and what are the fee structures?
This detailed guide will show you how to pay for a lawyer and how their fees work.
Here’s what to know about hiring a lawyer:
Flat Fee
A flat fee is the most common payment option if you have a simple legal need.
For example, you might need to register a business. A lawyer can file the paperwork and prepare the Articles of Incorporation needed.
You might want a contract drafted or proofread. They’ll set a flat rate on your contract based on the number of words or pages.
Flat fees are also common for legal consultations. Lawyers might ask you to pay upfront or allow you to pay in installments.
Hourly Fee
The next type of fee is the hourly fee. This is often used for consultations and simple legal tasks. It’s also used for routine legal work needed for your case.
Sometimes, they’ll charge you an hourly fee and then invoice you. They’ll specify how many hours they worked on the invoice.
Other times, they charge a flat fee based on the average hours they’ll likely work.
For example, they might take an average of five hours to complete a form. They’ll charge you an hourly fee based on this average.
Contingency Fee
You must hire a law firm such as Maderal Byrne & Furst PLLC to handle a workplace injury case.
If you win the case, you’ll receive compensation for your injury. A portion of this compensation will be paid to your attorney. This is known as a contingency fee.
Contingency fees aren’t permitted in all cases, and some laws prevent contingency fees for certain legal matters. However, if you can work on contingency, it’s often beneficial for you.
For instance, if your lawyer loses a case, you don’t have to pay them any fees. Contingency fees only apply if the lawyer wins your case.
However, make sure you calculate potential contingency fees. Let’s say your owed $10,000 as compensation. Let’s also assume your lawyer is working on a 30% contingency.
They’ll keep $3,000 if you receive your full compensation. You have to ask yourself if the remaining $7,000 is sufficient.
For example, if you’ve experienced a workplace injury, you might need money for medical treatment.
You might need more money after paying contingency. You can negotiate the fee with your lawyer in such a scenario.
Retainer Fee
You’ll pay this fee when you decide to work with a lawyer on a routine basis.
You’ll have to pay an initial fee when you sign the retainer with the lawyer. Afterward, you’ll be charged flat or hourly fees for the ongoing work on your case.
Make sure you assess a lawyer before signing a retainer. If you want to use their ongoing services, you want to ensure you’re comfortable working with them for a long time.
Additional Fees
Let’s look at a few additional fees you’ll likely have to pay. These fees are added on top of your legal fees.
You’ll have to pay for stationery and other office expenses. This will include paper for printing and making copies. At times, you’ll also have to pay for postage expenses.
For some legal procedures, you’ll also have to pay filing fees. Your lawyer will ask for a reimbursement of these fees. Often, they’ll ask you to pay these fees upfront.
These can range from filing fees for applying to U.S. immigration services to registering a copyright.
They’ll also charge extra labor costs for particularly complex procedures. These could include researching, investigating, and preparing exhibits for a court case.
Additional fees can also include travel expenses. This could include fees to travel to the courthouse, for example.
Make sure you ask your lawyer in advance about potential additional fees. They’ll give you an estimate of how much you’ll be expected to pay.
How to Pay for a Lawyer
Let’s wrap it up now by looking at the exact methods of how to pay for a lawyer.
Once you’ve agreed upon a fee structure, you’ll have several options to pay a lawyer. You can pay your lawyer via credit card or by writing a check.
You can even pay your lawyer in cash, though they should always give you other options. If you pay in cash, get a signed receipt from the lawyer.
As mentioned in the introduction, legal services come at a high price. Always ask for a payment plan if you need more money to afford to pay upfront. Most lawyers will oblige.
You can also reach out to the Legal Services Corporation. They can help find funding options for your legal fees.
There are also numerous crowdfunding options to seek donations for legal fees. Especially if you’re fighting an important case, you can find good samaritans willing to help you pay your legal fees.
You can even get a lawyer to work pro bono in some scenarios. If they find your case to be an important cause, they might waive their fees altogether.
Find a Lawyer
Now you know how to pay for a lawyer and can find the right one for your needs.
The different types of fees are flat fees, hourly fees, contingency fees, and retainer fees. Make sure you choose the best fee structure for your needs and negotiate a price with your lawyer.
If you have trouble paying upfront, you can request a payment plan. You can also contact crowdfunding organizations to help cover your legal fees.
Ready to hire a lawyer? Be sure to check out our other legal tips on our website.
