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What is a contingency fee?

When you are injured in an accident, you may decide to file a lawsuit seeking damages for medical bills, lost wages and more. Unfortunately, some people choose to not seek damages, simply because they believe that an attorney is too expensive. The truth is that the majority of personal injury lawyers work on what is known as a contingency fee.

A contingency fee, or contingent fee, is one that is paid to the lawyer if the case is won. In other words, the attorney receives compensation out of the damages that are awarded to the client by a settlement, judge or jury. If the case is not successful, the attorney receives no compensation. For this reason, most personal injury attorneys will only accept cases that they believe will “win.”

When an attorney agrees to work on a contingency fee basis, they often determine that they will accept a fixed percentage of the award. Often, this amount is equivalent to one-third of what is recovered in the lawsuit. It is important to note, however, that if you don’t win, you may still be responsible for some of the fees that are associated with filing a lawsuit.

For example, if you file a lawsuit, you may have to pay the fees associated with its filing, costs for deposing witnesses and other charges. Even if you hire a lawyer in Atlanta who agrees to a contingency fee, it is important to take the time to discuss the costs you will be responsible for, even if you lose your case.