Wednesday, March 27, 2002

How to Pay Legal Fees

A legal fee is part of the costs and expenses associated with your court case and is generally the amount being charged for your legal representation. You must pay these fees or risk losing your legal representation. If you hired an attorney to represent you but didn't pay her, she can cease to act on your behalf due to nonpayment and can start collection actions against you for the balance due. You should have a written agreement with any attorney you hire detailing the payment arrangement and amounts.

Instructions

    1

    Use documented forms of payment whenever you can. A personal or cashier's check and a money order can be traced if there is a problem. Ask for a receipt signed by the attorney if you pay any legal fees in cash.

    2

    Give the attorney the agreed-upon retainer amount, if any, by the deadline you agreed to. Not paying your retainer on time may cause you to lose the attorney. A retainer is a fee the attorney charges to start working on the case for you, but future legal fees must be deducted from this retainer. Keep track of the total retainer you paid and deduct amounts taken by the attorney for legal fees.

    3

    Pay all of your legal fees according to the type of arrangement you have. Pay the total amount in full by the deadline if you and your attorney have decided on a flat fee for your case. Pay the amount requested by the attorney if using an hourly rate system, but get the hours detailed in an itemized bill before payment.

    4

    Pay the amount billed by the attorney if you have a contingency agreement. A contingency agreement is when the attorney agrees to take payment after the case is settled --- usually a portion of your court award. Verify that the portion of your award the attorney is requesting matches the percentage in your contingency agreement. Some states require you to pay court expenses even if the attorney loses your case.

    5

    Pay the amount dictated by law if a statutory fee exists for your type of case. Some cases have established legal-fee amounts in state law or court rules, such as probate proceedings.

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