Saturday, February 9, 2019

3 Things You Should Know about the Cost of a Lawsuit



There are many factors to consider as you decide whether or not to file a lawsuit against another party. Regardless of the type of case that you are thinking about pursuing in court, you must understand the potential costs of a lawsuit before you finalize your plans. While requesting an estimate for legal fees from your lawyer is a critical step to take, there are a few other things that you need to know about legal fees.

Different Legal Fee Structures


Each law firm or independent lawyer has a different fee structure. Some will only collect a fee if they win your case, and the fee may be a percentage of the award. Others will collect an up-front fee based on their time and energy spent on your case regardless of whether they win or not. 


Some will collect this fee with monthly billing statements as an alternative. There are also various hybrid variations that combine these fee structures together. Because fee structures vary dramatically, you should carefully assess the structures from several experienced attorneys before you make a decision about representation.

Rates Vary Dramatically


Likewise, rates for these various fee structures vary. A higher rate does not always mean that you will receive better service or enjoy a more favorable outcome. Many people worry about having to pay expensive legal fees out of their own pocket, and they may be inclined to find the rock-bottom lowest rate available. 





Understand that lawsuit funding is available. After learning about the lawsuit funding process, you may decide that this is an effective way to pay for legal fees upfront and obtain the services of the most experienced lawyer in your areas. 

Don’t forget to look on legal websites for information that can help you out. For example, if you had questions about settlement loans, you can learn about it here.

Judgments May Not Be Paid Promptly


You may assume that you can pay for legal fees after a judgment has been awarded, and your lawyer may tell you that you have a very solid case with a strong likelihood of having a favorable outcome. However, some people may not pay a judgment in a timely manner. 


An outstanding judgment typically will show up on the individual’s credit report as an outstanding debt, and this may interfere with is or her ability to obtain financing until the debt is paid to you. However, it still may be months or years until you receive a dime from the court case.

Legal fees can seem prohibitive, and you may consider not filing a case because of them. However, with multiple fee structures available and with legal fee funding available, there is no reason not to pursue justice with a lawsuit.


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