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5 Types of Lawyer Fees - Next with Lena Nguyen

5 Types of Lawyer Fees

A lawyer’s service is not cheap. Legal fees depend on several factors including the lawyer’s experience, the difficulty of your case, and the costs involved in handling your case. Be sure to consult with multiple lawyers before you decide which lawyer you would like to handle your case. Keep in mind, just because a lawyer bills at a higher rate or has a larger retainer, it does not necessarily mean they are “better.”

There are 5 common types of fee arrangements used by lawyers.

1. Consultation Fee

Lawyers usually charge a flat fee for the first meeting, also known as a consultation. Most often, the rate charged is less than the lawyer’s usual hourly rate because no legal advice is given during consultations. The purpose of a consultation is for the lawyer to assess your case to see if he or she can assist you, and for you to learn more about the lawyer. Being comfortable and having the ability to trust your lawyer is essential for a smooth process.

2. Flat Fee

Lawyers will charge a flat fee for cases that are relatively simple. Some lawyers will also agree to handle a portion of your case for a flat fee.

3. Hourly Fee

Hourly fees are the amount of money a lawyer chargers per hour of work on your case. Lawyers usually bill in quarters. For example, if a lawyer charges $100 per hour, it will amount to $25 for every quarter of an hour. If they talked to you on the phone for 16 minutes, the fee will be $50. The amount of time will be rounded up to the next quarter of an hour. A lawyer’s hourly rate will depend on location, case type, ability, experience, utilities, rent, office equipment, and software to name a few. You can expect to pay an attorney between $175 to $400 an hour.

4. Retainer Fee

A retainer is an upfront fee for their services. Think of it as a “down payment.” The retainer amount is on average between $2500 to $15000 for a family law case. Lawyers place this lump sum in a special trust bank account called an Interest on Lawyer’s Trust Account (IOLTA). You will be billed at an hourly rate, discussed above, for their services. The billed amount will then be deducted from your account. When the remaining balance in your account dips below a certain threshold amount, you will be asked to put additional sums of money to replenish.

5. Contingency Fees

You have probably heard lawyers use the line, “We don’t get paid until you get paid,” or something similar. The lawyer is referring to contingency fees. Contingency fees are based on a percentage of the amount awarded to you in the case. However, if you lose the case, there is a chance the lawyer will still charge you for expenses such as court costs, process servers, and court reporters. Contingency fees are usually one-third of the amount (33.3%) awarded before trial preparations and 40% of the awarded amount if trial preparation has started. For the most part, contingency fees are not allowed in family law cases. Some states allow contingency fees for lawyers recovering back child support payments.

DISCLAIMER: The following information found on www.legalattraction.com is provided for general informational purposes only. It may not reflect the current law in your jurisdiction. No information contained on this website should be construed as legal advice or the creation of an attorney-client relationship. This information is not intended to be a substitute for legal representation by an attorney.

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