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How does a contingency fee arrangement work?

On Behalf of | Jul 21, 2022 | Personal Injury

A car accident can leave you facing significant economic and noneconomic losses. If your accident was caused by the negligence of another driver, a personal injury lawsuit is one of the best ways to ensure that you recover the compensation that you need to offset these damages. Unfortunately, many victims are worried about how they’re going to pay their attorney if they pursue one of these claims. In far too many instances, this concern drives victims away from the legal action that they should take.

What is a contingency fee?

The good news is that you don’t need to have the money to pay your attorney up front if that lawyer works on a contingency fee basis. Under a contingency fee arrangement, the lawyer doesn’t get paid until your case successfully resolves. At that point, your attorney will take a portion of your award, meaning that you’re paying nothing out of pocket up front.

The benefits of a contingency fee arrangement

There are a number of benefits to this type of fee schedule. Here are some of them:

  • You don’t have to pay up front, meaning your current financial position won’t affect your ability to secure skilled legal representation.
  • Your attorney will only take your case if he or she thinks that it can be successful.
  • Your attorney will be motivated to win your case and recover as much compensation as possible, which can leave you feeling at ease knowing that your case is in competent hands.
  • Your attorney shares the risks of litigation, meaning that he or she will put in the work necessary to mitigate and overcome those risks.
  • You owe your attorney nothing if you don’t win your case.

As you can see, then, this type of fee arrangement reduces your risks and allows you to focus on what really matters: your recovery. Agreeing to a contingency fee arrangement can thus minimize your stress and even strengthen your case given that you’ll have a legal advocate on your side who is motivated to fight for you.

How does a contingency fee stack up?

It’s hard to compare numbers here, but just think about the financial strain that you might face if you’re forced to pay your attorney an hourly fee as you progress through your case. It’s a frightening prospect, and it may prove to be more costly than you ever expected. With a contingency fee, you’ll know what portion of your settlement that your attorney will take if you’re successful, so there aren’t any surprises in regard to how much of your recovery you’ll actually end up taking home.

Attorneys who don’t operate on a contingency fee basis may be motivated to work more but not necessarily build the strong case that you need on your side. You don’t want to deal with this distrust when it comes to building your claim.

Consider seeking assistance

You have a lot to consider in the aftermath of a car accident, and it can all become quickly overwhelming. But you don’t have to let the stress of the situation leave you feeling uncertain and fearful of the future. Instead, you secure the assistance of a qualified legal professional who will know how to fight to protect your short-term and long-term interests.

 You have a lot of options when it comes to choosing an attorney to represent you in your personal injury case. And the type of fee arrangement an attorney provides is just part of your analysis. Therefore, we encourage you to thoroughly research your options before you settle on an advocate that you think is right for you. Hopefully then you can position yourself to achieve the favorable outcome that you deserve.