Unfortunately, no matter how careful we are at work while driving, or even while we are just walking around our neighborhoods, accidents happen. If you are injured due to negligence or recklessness by another person or company, you may be entitled to compensation to cover the costs of medical treatment, lost wages, and trauma. Let’s examine the purpose of “contingency fees” and how personal injury attorneys use them to prevent their clients from incurring additional financial stress.
What are contingency fees?
The costs of a personal injury are substantial. Between medical bills, lost wages, and personal trauma, the last thing you want to worry about while recovering from an accident is how you will pay your personal injury attorney. If your lawyer is working on a contingent basis for your personal injury case, you will not have to pay them upfront or on an hourly basis. Instead, their payment is contingent on you recovering from your injuries.
How do contingency fees work?
Contingency fees award your attorney a percentage of the sum of money you are awarded should you win your personal injury lawsuit. Under this plan, rather than paying your attorney an hourly rate upfront, payment to your attorney for their services is contingent on you recovering for your injuries. If you are injured and would like to hire a lawyer to work for a contingency fee, keep in mind that the lawyer risks getting nothing for their work if you lose the case. Thus, a personal injury lawyer Bronx is not obligated to work on a contingency basis – especially if they feel you lack a strong case, or if the defendant will be unable to pay the damages you are awarded.
New York’s contingency formula
When a lawyer agrees to take a case for a contingency fee, they will work in exchange for a percentage of the damages you are awarded at the end of your lawsuit. The percentage is typically 33% and is deducted after your lawyer deducts “fees and disbursements,” from your settlement.
For example, if you are awarded $10,000, your lawyer may deduct $1,000 to reimburse their expenses, which leaves you with a $9,000 settlement. Then the agreed-upon contingency fee is deducted. If the fee was 33 percent, your lawyer will receive $3,000, and you will be awarded $6,000 for your settlement.
Contact an experienced personal injury attorney
After an injury, your focus should be on making a full recovery, not worrying about how you will pay your lawyer. At the Law Offices of Evan W. Kohn, we understand how stressful the personal injury claims process can be and are ready to provide sound legal guidance every step of the way. Call us today at (718) 409-5500 or contact us online for a confidential consultation.