Contingency Fees vs. Hourly Rates
Many of you have had experiences with attorneys. Often, these experiences are not remembered fondly, and we understand why! Getting an attorney involved with a legal matter can often be extremely stressful because you do not know if they can be trusted, and even worse – how much the whole thing is going to cost you. When our clients are faced with breaches of contract that often lead to non-payment of money and a debt collection legal matter, they don’t worry at all! That’s because we do a vast majority of our contract litigation and debt collection cases on a contingency fee basis. Keep reading to figure out why that can be a terrific option for getting an attorney involved.
What does it mean to hire a lawyer on a contingency basis?
Most attorneys work at an hourly rate, which usually requires the client to pay a retainer up front that the attorney will work against. Clients will get an invoice outlining the amount of time the attorney worked and a total amount withdrawn from the retainer based on that time sheet. Working on a contingency basis, however, is a very different process. Under this model, a lawyer’s fee is contingent upon the attorney’s ability to recover money for the client. The lawyer, if successful, receives a percentage of the recovery, rather than an hourly wage. The best part about this arrangement is our interests are 100% aligned. We’re incredibly motivated to get the matter resolved efficiently and the only way our firm receives any payment is if we are successful for our clients.
Do all attorneys offer a contingency basis option?
Not all legal work can be done on a contingency basis. Different law firms have different policies, and there are also some legal restrictions on when contingency billing can be used. At Wakefield Law, we work both on a contingency basis and at an hourly rate. The choice is always up to the client, but the majority of our collections work is done on a contingency basis.
Not all lawyers like working on a contingency basis. In fact, some refuse to do it altogether. There are a number of reasons for this, including that when an attorney works on a contingency basis, there is no guarantee that he or she will be paid for the work completed. However, at Wakefield Law, our experience and persistence with collections matters makes us confident in our choice to work on a contingency basis with the majority of our clients.
Collecting outstanding debts on a contingency basis
Hiring an attorney on a contingency basis makes legal recourse accessible for small businesses and individuals who may have a matter in dispute that is not large enough to warrant an attorney on an hourly basis or they do not have the resources or the inclination to engage the services of a lawyer on an hourly basis.
If you have been wasting your precious time and resources trying to collect outstanding invoices or personal debts on your own without success, you may want to consider hiring a collections attorney on a contingency basis. With very low up-front costs to cover filing fees and court costs, it is possible to hire an attorney now. Isn’t collecting a portion of the debt without any of the effort better than spending hours to collect nothing at all?
Still not sure how collection on a contingency basis would work for you?
If you have been considering getting some help with your accounts receivable, contact one of our experienced collection attorneys to learn more about whether hiring an attorney on a contingency basis could work for you or your company. We are always available with a free consultation. Give us a call at 703-771-9740.