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Understanding the Personal Injury Payment Plan It is important to know the type of payment plan used by your attorney before hiring his services. That is because different attorneys use variable payment plans some of which might not be flexible for you. The first interview you hold with the attorney is the best time to bring up the topic. We have discussed different types of payment plans in the following article. Ensure you bring up each of these topics in your discussion. First things first, ask the attorney whether he charges a consultation fee for his services or whether they are free. This is important since it will determine whether you will have a hard time meeting with your attorney due to finances. Confirm whether you need to make any payments for the first consultation as well.
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You should ask whether the attorney charges a contingency fee for his services. Different attorneys or law firms have varying percentages that they take for the contingency fee. Normally, most attorneys ask for a one-third contingency fee. In that case, you should inquire from your attorney to know the exact amount of money you will pay for your case. Some attorneys determine the amount of contingency fee a client will pay based on how long the case will take; hence, you need to ask about this as well. Fortunately, clients have a chance to negotiate for a lower figure.
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Another common payment plan is the flat rate. This is where a lawyer charges a specific fee for a particular case. It is normally used with cases that are easy to handle. Other types of lawyers might use hourly rates with your case. With this payment plan, a client is supposed to pay a fixed amount of money for every hour the attorney handles his case. Different attorneys have variable rates that they use with their clients. In case the attorney feels not good for the case, he might reffer you to another expert and ask for a referral fee. This payment plan is not acceptable in all states; in that case, you have to ask your attorney before deciding to take the help. You might also be required to pay a retainer fee for you case. Retainer is basically a down payment for services offered. They are normally deposited in an account where the money is deducted as the case continues. The downside of this payment plan is that it is rarely refunded. With all these payment options, it is necessary for a client to know more about each payment method to make an informed decision. Discuss with your attorney about this matter to conclude which method would be the best one to use for your case.