How Do Contingency Fees Work?

When hiring a Lexington personal injury attorney, you may learn that they use a contingency fee model for pricing. How do contingency fees work?

In the simplest of forms, whether you pay the attorney or not is contingent, or depends on, whether they win the case for you. There are several factors to understand about what contingency fees are and how they work.

You Only Pay If They Win

The core component of contingency fees is that the client only pays the attorney if the attorney wins the case. Winning refers to the attorney contributing to the client’s ability to receive a settlement in the case.

In situations where the client does not win the case, meaning they do not receive a settlement, the client does not pay the attorney for legal services. Their ability to collect fees is dependent on the outcome of the case.

This is a critical factor in personal injury cases because the victim does not have to pay a retainer or any out-of-pocket costs before the accident.

For many people who are hurt due to negligence and who may not be working, contingency fees enable access to legal representation without financial burden. That protects your right to take legal action.

How Much You Pay Depends on the Attorney and the Case

Contingency fees do not imply a specific cost for legal services. Rather, the actual cost you will pay is dependent on the amount achieved either through settlement of after a successful trial. The fee is usually a percentage of the dollar amount achieved.

Also, ask about additional costs associated with the legal services provided. There may be court costs and other fees involved in the process that could influence the overall cost to you. Your attorney should discuss these with you as well.

Contingency Fees Are Often Paid First

When you win your case, the at-fault party must pay you funds, but you will not receive those funds immediately. All of those who have a lien on the funds will receive payment first. That includes your attorney.

For example, if you have medical bills from a hospital stay, the hospital may seek a lien on your settlement that would pay for the losses. Your attorney’s fees apply as well. These must be paid first before you receive the remaining amount of your settlement.

By taking these steps, you ensure that the funds awarded to you go to where they should be paid, such as the doctors owed compensation for the work they have done. The entire settlement process can take just a matter of days, even in these situations.

Know Before You Sign

If you are unsure what your rights are in these situations, ask the lawyer before you sign any contract with them.

The more information you have about your rights and the costs associated with your case, the safer you can be moving your case forward. Qualified lawyers, such as the personal injury lawyers at Gary C. Johnson P.S.C. will always be upfront with you.

Contact us today to discuss your claim.