Understanding Legal Fees and How To Pay Your Lawyer

Chances are, you probably don't want to find yourself in a situation that would require the services of an attorney. However, you're likely to need legal representation at least once in your life. Perhaps you are going through a messy divorce or child custody battle, suffered a workplace injury, or need to understand your real estate contract. Whatever the case may be, we all need legal counsel at some point.

Legal fees accrue pretty fast, and these rates often depend on the attorney's years of experience, the complexity of the legal issue, office hours spent working on your case, and any additional services that the law firm is likely to offer. Attorney rates are also set according to local rates. For instance, lawyers in Springfield, MA, may charge more or less than attorneys in Boston, MA.

Having an understanding of how fee agreements are structured can help you make an informed decision when choosing an attorney. Also, working with a personal finance advisor such as the team at wealthrocket.com can help you figure out your finances, develop a payment plan that'll keep you out of debt, and maintain your credit score, without skimping on the caliber of attorney that you hire.

Keep reading to understand how legal services are charged and how you can finance these fees.

Understanding Legal Fees and How To Pay Your Lawyer

• Types of Attorney-Client Fee Arrangements

Some of the most common attorney-client fee payment agreements include contingent fees, retainers, and flat fees.

A flat fee arrangement covers all the legal work that an attorney will undertake and is often paid upfront; for instance, during your initial consultation. This form of payment is often used by criminal defense attorneys or in misdemeanor cases. This fee arrangement is also used for straightforward cases such as drafting wills, uncontested divorces, forming business entities, immigration issues, and bankruptcy cases, to mention a few.

If you're paying on a contingency fee basis, you won't have to pay your personal injury lawyer any upfront fees unless your case comes to a successful resolution. Even then, the amount of money that your attorney can get from your settlement is capped at about 30 to 40 percent of your total settlement. If the case isn't ruled in your favor, you may not owe the attorney any legal fees, but in some cases, you may have to foot the out-of-pocket costs that your attorney incurred.

Contingency fees are often used in personal injury cases that involve medical malpractice, driver negligence, premises liability, product liability, wrongful death, and other legal matters whose goal is financial compensation for harm done.

• What Payment Options are Available to You?

Your legal fees can always be settled under different repayment terms. Some of the ways that you can make attorney bill payments include negotiating a contingency fee payment model with the firm, looking for attorneys who offer pro bono services, using your credit card, crowdsourcing for funds, and personal loans from a financial institution, to mention a few.

Today, most attorneys accept credit card payments as a means to recover their legal fees. A credit card is a financial product that allows you to get a line of credit that's capped at a certain amount. The amount spent is often paid back to the credit card issuer at the end of the month and often at a higher interest rate.

However, if used well, credit cards offer cardholders the ability to build a good credit score and also improve their financial situation. While crowdfunding may be a new way to finance legal fees, popular platforms like Kickstarter, GroupFund Legal, and GoFundMe have made it possible for people to pay their legal fees through the help of well-wishers.

If you have a criminal defense case leveled against you, hiring an attorney experienced in criminal law ranks high among one of the most important financial decisions you'll ever have to make in your life. Luckily, there are several financial services available today to help you obtain a personal loan. Visit the Wealth Rocket website to learn more about your financial options.