Different ways to cover legal costs
There are many situations in life where you might find yourself in need of a lawyer. Perhaps you were involved in an auto accident, for example, and want to get the compensation you deserve. Maybe you were injured at work, bitten by a stranger’s dog, involved in a medical malpractice case, or injured by a defective product.
These situations are stressful enough on their own and can be very costly too, and that stress can be compounded when you start to think about legal fees on top of everything else. People who have been injured or involved in accidents already have lots of costs to cover, from medical bills to loss of income affecting their personal finances, and the worry of legal bills can be a big one.
It’s no surprise, therefore, that one of the most-asked questions when it comes to lawyers is “How much do lawyers cost?” A lot of people want to know what sort of financial liability they’re taking on when hiring a lawyer and how they’ll be able to pay, and the truth of the matter is that it really depends on the firm you contact and the nature of your case.
Legal fees can vary a lot, and lawyers often have different ways of accepting payment too. Some will ask for retainers, others will want hourly fees, and others are happy to be paid once the case is closed. In any case, you might find yourself wondering how you’re going to cover all of those costs, and this guide will look at some of the many ways you can raise the necessary funds.
Savings
One of the most obvious ways in which people can pay for lawyers is through their own savings. Indeed, this is one of the main situations in which savings can prove so valuable, which is why it’s often wise to save up some money each month or whenever you can, always ‘ready for a rainy day’ and able to help out with some of life’s unpredictable obstacles and encounters.
Of course, many people don’t like the idea of dipping into their personal savings to pay for a lawyer when they’d prefer to spend that money on more enjoyable things, like new cars and exotic vacations, but if you do have savings, then this is usually a good time to use them and makes more financial sense than other options like loans and credit.
Lawyer loans
In the same way that you can get loans to pay for things like properties, home repairs, and new vehicles, you can also take out a personal loan to cover the costs of a lawyer too, and this is one of the more popular methods people turn to when they don’t have the cash to pay a legal firm on their own.
Lawyer loans work just like other personal loans. Various banks and lenders will offer these kinds of loans, each with its own limits, rates, and requirements. You can usually borrow up to $100,000 and you’re often able to choose a flexible repayment plan that works for you, either paying the cashback in set monthly amounts or simply vowing to repay it in a certain period of time, up to about 10 years.
Contingency fees
If you’d rather not take out loans or make use of your savings to cover the costs of a lawyer, or if you simply aren’t in a situation in which these options are viable, you may want to consider the possibility of working with a lawyer who offers contingency fee agreements.
Contingency fees are basically a system in which the lawyer only gets paid if they’re able to win your case. If they win, they’ll take a percentage of the compensation or payout you receive. For instance, if you suffered a personal injury and take legal action to receive compensation from the party who was responsible for your injury, the lawyer will take a certain amount of the money you receive once the case is won.
Line of credit
Another possible option for financing a lawyer is to seek out a personal line of credit. This is, in many ways, similar to a credit card, in that you only borrow the amounts you need, and you only have to pay interest on the amounts you borrow, so it’s a good way to borrow money without borrowing too much, highly flexible and well-suited to cases which might drag on for a while.
As with loans and other forms of financing, you’ll need to make a formal application for a line of credit via a bank or lender. They’ll need to check your credit score and potentially look at some other information too before deciding whether or not to approve you, with fees and rates varying from lender to lender.
Crowdfunding and family funding
There are some situations in life where you simply need to ask for a helping hand from people who care about you, and this can be an option for legal cases too, with possible avenues including crowdfunding or simply asking your family and friends for support.
You can set up a campaign on a crowdfunding site, for example, if you feel that the public might be willing to get behind your case and support your claim, and there have been cases where people have received donations from strangers all over the globe. To stay closer to home, you can simply sit down with loved ones and ask to borrow money, if you feel comfortable doing so.
Final word
These are just some of the ways in which you can get the cash you need to pay for a lawyer, and there are other options out there, like payment plans, pro bono lawyers, and credit card payments too. Take your time and compare the pros and cons before choosing which payment method you want to use, and be sure to speak with your lawyer beforehand about fees and payments so you know exactly what you’re getting into before you commit.