Are you up to your ears in legal fees? It can be overwhelming, to say the least. If you want to know how to pay them off, you’re in the right place.
In this article, we will cover 10 ways of paying off legal fees.
Keep reading to get your financial situation under control.
1. Personal Loan
A personal loan can be used for a legitimate expense, including legal fees. A personal loan is best used when you know in advance, the amount of money you will need to spend.
Typically, you should be able to borrow, anywhere from $2,000 to $100,000 in a single request. The loan should be paid off monthly over a fixed term, usually between one to 10 years.
2. Contingency Fee
Are you in for a settlement? A lawyer might be interested in working for a contingency fee. Instead of paying all of your fees upfront, a contingency fee will be paid from the percentage of damages that you will be paid.
In general, a contingency fee is not available for criminal, divorce, child custody cases, or small settlements.
3. Awards of Attorney’s Fees
An award of attorney’s fee works quite similarly to a contingency fee. The only difference lies in the fact that the court will order the defendant to pay your legal fees.
This is an option, only if your lawyer believes you have a very strong winning case.
4. Personal Line of Credit
If you’re not sure about the length of time you will need to pay legal fees, a personal line of credit might be reasonable. Instead of borrowing a specific amount, you will get access to a line of credit, which will allow you to borrow at any time.
Fees and interest are only paid on the amount that you have withdrawn and can be renewed as many times as you want. A credit line varies in limit by the lending institution, but it’s not uncommon to find a line of credit with $50000 limits.
You can try and reach out on social channels to help raise money for your legal fees. The platform might require a percentage of gathered money, but it is still a reasonable opportunity.
Kickstarter and GoFundMe can be used. However, specialized platforms like Funded Justice are made specifically for legal cases.
6. Legal Payment Plans
Try asking your lawyer if they would be interested in developing a legal payment plan to help you cover the cost. Most will have a standard legal plan with no interest or fees. Some will accept partial payments over time.
If you’ve poor or no credit, a legal payment plan is a better option for you. You don’t have to prove your creditworthiness, and you can negotiate the terms. However, if you miss out on payments – your lawyer might not stand by you in court.
7. Credit Card
The simplest way to pay a single legal fee is to use your current credit card. All law firms accept them, and it’s easy to get benefits, such as points and miles.
However, you should pay it off quickly to avoid interest, since the rates are significantly higher than on a persona loan. Not to mention, a high balance will lower your credit score.
And that can be bad, if you come across additional legal fees in the near future, and you are looking for a loan.
8. Pro-Bono Lawyers
A lawyer might be interested in reducing their fees or working for free – if they know the case will have lots of press or the client is low-income.
Some firms require their employees to work pro-Bono multiple times in a year.
To find a pro-Bono lawyer, check out the American Bar Association and discover their list. After this, you can visit their office and have your initial consultation free of charge to determine the scope of their assistance.
9. Non-Profit Legal Aid
If you can’t find a pro-bono lawyer, you can contact a legal aid office. This is a non-profit organization that provides free legal help to those who can’t afford the services of a lawyer.
You can get help with evictions, public benefits, immigration, disability, child custody, domestic violence, etc.
Visit Legal Services Corporation from the Congress, and find the closest office to you. Visit the location, and discuss with the lawyers to determine if you are a good match for them and if they can help resolve your legal worries.
10. Settlement Loan
A settlement loan allows you to support yourself over the course of a long case. You will be responsible for any interest, and the money will be withdrawn from the settlement damages paid to you.
However, there are other arrangements that can be made throughout the process. Here are some shady scenarios to avoid in a settlement loan.
Legal Fees Under Control
Now that you have discovered 10 ways to get your legal fees under control. You are well on your way to living your best life once again without worry about financial incompetence.
Even though most of the methods are based on some sort of loan scheme or debt involvement, the result of insolvency from legal fees is far worse than missing a payment on a loan.
Nonetheless, this is your life and the choice is also yours. However, we think whatever you choose to do – will be right for you. No matter what it is.
If you’re interested in reading similar articles, check out some of our other blogs on this website.