Accidents force people into difficulties that they never knew existed. Yes, they may end up with physical injuries and psychological disturbances. But there’s another hardship that almost all victims of accidents suffer from. Financial struggles.
Accidents force a victim to miss work. This, coupled with the increasing expenses each day, puts victims under immense stress. Some victims are under so much financial stress that they may not even consider filing a personal injury claim.
In addition to daily and medical expenses, numerous expenditures arise when filing a personal injury lawsuit or claim. A contingency fee arrangement is the solution to that.
What is a Contingency Fee Plan?
In a contingency fee arrangement, the lawyer only receives payment if the victim receives compensation. This means that if the lawyer loses the case, they don’t get paid.
If the victim wins the case, the lawyer gets a percentage of the winnings as payment. This percentage varies based on the risks involved and the complexity of the case.
For cases that are simple and straightforward, a lawyer charges anywhere from 20 to 25% of the winnings.
Some cases are more complicated than others. They also carry additional risks. In such cases, a lawyer will charge around 35 to 40% of the winnings.
Advantages of a Contingency Fee Arrangement
Don’t be discouraged by the numbers above. Contingency fee arrangements are made to help victims who are in severe financial distress. The section below discusses the benefits of a contingency fee.
It Costs Nothing
As said before, in a contingency fee arrangement, a lawyer takes their cut from the final settlement. This means that they do not receive any kind of payment until they win their case.
This setup is pretty valuable for victims who are missing work but are spending a lot on treating injuries and repairing/replacing damaged property. With a contingency fee arrangement, they can receive legal expertise without having to worry about spending money.
It Motivates the Lawyer
Most lawyers don’t take up cases that are too risky or complicated, or ones that they are not sure they will win. They need some kind of incentive to not just accept the case but fight for it as well.
The cases where contingency fees are involved have a high success rate. This, along with the fact that the attorney receives a paycheck only if they win, gives them the necessary motivation to give 200% for your case.
It Doesn’t Account for Losses
Personal injury cases have their fair share of ups and downs. When you win a case, you get an amount that compensates for all your losses. You get paid, your lawyer gets paid, and everyone involved is happy.
But this is not the case when you lose a case.
The lawyer’s expenses, on top of other accident-related expenses, will be a huge blow to you. When you’re already facing heavy financial difficulties, the loss of a personal injury claim may simply pile on the misery.
The situation is different when you lose while working under a contingency fee agreement.
As said earlier, most lawyers don’t pick cases that they’re not sure of winning. If, due to some unforeseeable circumstances, you lose the case, the losses suffered are comparatively low.
Apart from some administrative fees, you wouldn’t have lost anything.
It Allows You to Focus on Your Recovery
Along with physical injuries, accidents also cause emotional trauma. Victims who have suffered severe injuries, like a fracture, will have to go through extensive rest to recover. During this period, they will miss work. All this takes a toll on the person’s finances and well-being.
In such situations, a personal injury claim will just be another reason to stress. The thought of the outcome of the case, the expected settlement, and how you’re going to cope until then are valid reasons to worry.
Fortunately, a contingency fee arrangement gives you relief from that. You can focus on your recovery without having to worry about money being spent on legal counsel.
Final thoughts
A contingency fee is a godsend for victims who’re in immense financial difficulty. It gives them the option to use the expertise of a lawyer without having to spend a dime. If you’ve been hurt in an accident, don’t hesitate to reach out to a lawyer.
