by Judith Richards

Created on: July 14, 2009

When you need the services of an attorney, you must understand the financial arrangements you will be required to make. Some attorneys will have an information sheet that details exactly what the requirements are as well as billing practices, charge rates for attorneys, paralegals, etc and other important first time client information. Others may not have printed information and you must talk with attorney and/or office staff about the fee structure. Practices differ depending on where the attorney practices and what type of law he/she practices.

Before you make an appointment it's a good idea to talk to the attorney or the secretary/paralegal on the phone to make sure the attorney handles your type of case and has time to pursue the matter for you. If he/she does not, ask for a referral to another attorney. You might also request any printed information or contract they may have regarding fees and review it prior to your first meeting. Write down any questions you may have.

FIRST TIME CLIENT FEES - This is a fee required for your first visit, unless the attorney is giving you a free consultation. Most offices will let you know what the first time fee is and tell you to bring a check, etc with you.

RETAINERS - Retainers are monies paid by you to the attorney for the purpose of retaining him as your attorney and/or as an advance for the performance of legal services. The amount will depend on the case and costs expected. The monies are deposited into a Trust account held by the attorney and are not withdrawn until the attorney "earns" a payment from the Trust account. Draws are usually made once a month to cover the fees and costs incurred by your attorney. When the funds are depleted, the attorney may ask you to replenish the fund. Any remaining funds in the Trust account after the case is settled will be returned to you.

CONTINGENCY FEES - Depending on the case, the attorney may not charge fees up front, nor bill for services while handling the case, but will take a portion of the judgment or settlement as payment for his/her services.

COSTS - Some attorneys will cover all the costs, i.e. filing fees, postage, copying, process servers, investigators, fax transmissions, title company co fees, etc and bill you later or they may ask for a retainer to cover projected costs. If you have not paid a retainer the attorney may still ask you to pay up front for some unexpected or expensive costs.

BILLING - Your attorney may bill on a monthly basis. Be sure you understand the payment due date and ask for a bill that specifies who performed the work, a description of the work performed and an itemization of the amount of time spent on the billed activity. You should know the charge rates for all personnel working on your case. Ask if interest rates are charged on unpaid balances.

Hiring an attorney can be expensive, but having an experienced professional may save you money in the long run. It's important to discuss fees and costs in your first consultation. Be open about your financial situation and ask the attorney about his/her estimate of the costs of his/her services in your case. Simple transactions completed within a short time will be less expensive. Litigation involving a court trial can be expensive, but there are other options available. Only you and your attorney can determine the best option for you.

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