How Much Do Lawyers Take From a Settlement?

There are countless people in the local area who are involved in serious accidents every year. This could lead to serious expenses such as medical bills, property damage, and even lost income if he will miss time from work. Fortunately, there are professionals who are willing to lend a helping hand to those in need. This is why everyone who is involved in a serious accident should reach out to a personal injury attorney for legal guidance.

It is possible that individuals who are involved in a serious accident could receive a significant settlement (car accident settlements), which can help cover the cost of medical bills, property damage, and even replace the income that could be lost due to an inability to work. At the same time, how does a lawyer get paid for his or her Services? Often, lawyers will take a portion of the settlement. Of course, one thing that everyone wants to know is how much does a lawyer take from a settlement? There are several important points to keep in mind.

Most Personal Injury Lawyers Operate on a Contingency Fee

The vast majority of personal injury attorneys are going to operate on something called a contingency fee. They are going to take an agreed-upon percentage of the final settlement as payment for his or her services. In the event that a lawyer is not able to start a settlement for his or her client, he or she does not get paid at all.

The biggest reason why lawyers operate in this manner is that this encourages them to fight on behalf of their clients. When the client does better, the attorney will also do better. Furthermore, this also prevents an attorney from taking on cases that he or she cannot win. This prevents the lawyers from billing clients for time spent that simply does not go anywhere. Therefore, it is important for everyone to understand how a contingency fee works for a personal injury lawyer.

Contingency Fees Make Legal Services More Accessible to Local Residents

First, everyone who lives in the local area has to understand that contingency fees make Legal Services more accessible to local residents. The vast majority of people in the local area would not be able to hire a lawyer straight out of pocket. It is not unusual for lawyers to charge several hundred dollars per hour, making them cost-prohibitive to most people. Therefore, by instituting a contingency fee, more individuals who are involved and serious accidents have the ability to explore legal representation. The contingency fee makes it easier for people to stand up for their rights in the event that they are involved in a serious accident.

Where Do Most Contingency Fees Fall?

Every lawyer is going to structure his or her contingency-fee slightly differently when it comes to personal injury cases. Some attorneys might use a sliding scale depending on the ultimate payout. For example, some attorneys might take a lower percentage of the award has higher and a higher percentage at the award is lower. In the end, most personal injury attorneys are going to charge a contingency fee of somewhere between thirty and forty percent of the total settlement award. For example, if a client and a personal injury lawyer settle on a contingency fee of 33 percent and the award is $100,000, and the lawyer is going to take $33,000 as his or her contingency fee while the client is left with $67,000.

Additional Legal Expenses

It is important to note that some attorneys might decide to deduct legal expenses from the total settlement amount before the division takes place. Some of the legal expenses that personal injury attorneys might deduct from the settlement amount include:

• The cost of hiring private investigators and expert witnesses to look at certain aspects of the case
• The cost of filing certain records of the court
• Any posted expenses that might result from the case
• The cost of acquiring police reports
• The cost of conducting depositions and setting up trial exhibits
• The cost of obtaining and reviewing medical records

Not all attorneys are going to deduct the expenses straight off the top. If an attorney does decide to deduct the cost of these expenses from the original settlement amount, then he or she may decide to charge a lower contingency fee as a percentage of the final award.

For example, if the total cost is $10,000, then an attorney might decide to deduct this from the settlement amount of $100,000. Then, the client and the attorney will split the remaining $90,000. In this case, the attorney might decide to go with a lower contingency fee of 30 percent instead of the original 33 percent. These are two of the most common ways that personal injury attorneys get paid for their services.

A Trained Legal Professional Is Always Willing To Lend a Helping Hand

In the end, every lawyer is going to structure his or her feet slightly differently when it comes to personal injury cases; however, a contingency fee is the most common model. It is important for everyone who has been involved in a serious accident to know that they do not have to go through this situation alone. Trained legal professionals are always willing to lend a helping hand to those in need.

At the same time, everyone needs to clarify exactly how the contingency fee works and what percentage the lawyer is going to take of any potential settlement. This will help everyone understand exactly how much money they might walk away with how they will be able to use this money to cover their medical expenses.