One of the most important things you need to be concerned with prior to hiring an attorney is whether or not you can afford their services. You need to make sure that you know upfront how much it will cost you and how the fees will be determined. Different attorneys use different fee structures. It is important to be aware of the most common fee structures that are used nowadays.
- Fixed Fee – This fee structure is often used for services such as incorporation or drawing up a will. In this set-up, your attorney will give an estimate of the cost of the total amount of the case.
- Hourly Rate – The hourly rate is determined by the type of attorney’s office, overheads, etc. A law firm that has a huge city presence and has a good reputation will most likely have an expensive hourly rate.
- Contingency Fee – In this set-up, the client will not pay the attorney unless the case is won. In case they win, the attorney will get a percentage of the compensation money.
- Modified Contingency Fee – This is a combination of contingency fee with a discounted hourly rate. It is used in situations that require a considerable amount of work over a long period of time.