What Are Contingency Fees?
If an accident leaves you injured, you are likely already concerned about the cost of your bills. This financial concern may prevent you from consulting with an attorney, as you fear incurring additional costs. However, many attorneys, such as the Chicago personal injury lawyers with Taxman, Pollock, Murray, & Bekkerman, can help you by providing services through contingency fees.
Contingency Fees are One Form in the Legal Fee Structure
There are several ways that an attorney or law firm may bill for their services. Common fee structures include a flat rate or an hourly fee.
While a flat-rate fee can be beneficial for a simple process, it can still leave you with additional debt and no recovery. Similarly, an hourly rate can quickly escalate if your case faces delays or complications, which can still result in high legal fees and little or no compensation.
However, contingency fees are contingent on your recovery. This typically means that you pay nothing up front for your attorney to work on your case. During your initial consultation, which is often also free, our Chicago personal injury attorneys can help you understand the typical percentage we take from your settlement when we win.
The contingency structure allows you to secure the representation you deserve without the stress of unmanageable fees.
Important Considerations Regarding Contingency Fees
While the concept of contingency fees is relatively straightforward, there are a few things to consider before agreeing.
What Is the Percentage, and How Is it Calculated?
Contingency fees can range from 25%-50% of what your injury attorney recovers for you. If you are unclear of the percentage of the fee before you agree, this may leave you with less than you want or need.
Is the Percentage Fixed or On a Sliding Scale?
In some cases, your personal injury lawyer may collect a different percentage based on the amount recovered. For example, it may be 50% of a 5 or 6-figure settlement, but 45% of 7-figures or more. This still allows your attorney to collect a respectable fee for their work. Similarly, some lawyers will take a lower percentage if your case resolves quickly due to their decreased workload.
How is Recovery Defined?
While it may seem obvious that recovery is the amount you get in your settlement. Whether your fees are calculated before or after your other bills are paid can make a significant difference in the amount you pocket.
For example, a fee of 50% may seem like a lot, but an attorney who collects 50% of the final take-home amount after your other obligations are met is likely to leave you with more than one who takes 25% up front.
Contingency Fees Facilitate Access
Thinking about someone taking 50% or more of what you recover can seem unreasonable. However, it is essential to consider that contingency fees provide access to legal representation that can help you avoid incurring debt due to injuries caused by someone else.
Your Chicago personal injury attorney takes the risk of working your case for nothing in return, and oftentimes recovers less than they would if they billed hourly. This risk can work to your benefit because it ensures that everyone is invested in a positive outcome.
Contact a Chicago Personal Injury Attorney at Taxman, Pollock, Murray & Bekkerman
If you’ve been injured and are worried about the cost of hiring a lawyer, don’t let that stop you from getting the help you need. Our team of Chicago personal injury attorneys at Taxman, Pollock, Murray & Bekkerman works on a contingency fee basis, meaning you don’t pay unless we win your case. Call (312) 586-1700 or contact us online today for a free consultation and learn how our personal injury lawyers can help you pursue the compensation you deserve.