Busted But Not Responsible? Tips For Your Defense

If you've been arrested for a crime you didn't commit, you need to defend your legal rights. You have the right to an attorney who can help you present your case. After being wrongly accused of something myself, I learned quickly how to navigate the legal avenues to have my case dismissed. My attorney was a great resource for building the case, and because of my understanding of the law, it worked. I created this site to share what I learned along the way and some other great tips for others who have been wrongly accused and arrested for a crime.

Contingency Fees And How They Could Affect Your Auto Accident Settlement


Getting injured or having property damaged as the result of a car accident can be very pricey, but if you're on the victim side of the equation, then the settlement is often a light at the end of the tunnel. However, some lawyers offer contingency fees, also known as contingency agreements or contingency contracts. These "money-back guarantees" sound great at first, because they often offer you a way to protect yourself against paying for an attorney who loses your case. Contingency fees are a complex and fairly high-risk game, but they can prove advantageous if you know how to use them correctly. Here are some reasons why you shouldn't agree to settle your case under contingency fees, and one reason why you should use this agreement in the right situations.

High-Priced Victory

Lawyers working under contingency agreements often don't come cheap for a simple reason: they need to get paid one way or another, whether or not they win the case. For this reason, their winning cases are often expensive in order to make up for lost cases that were unpaid. For this reason, it might not be best to operate with contingency fees, since your case will cost more if you win than had you paid the lawyer by the hour. On the other hand, asking if you can pay your lawyer by the hour at a more reasonable rate might be worth your while, especially with a well-respected and established lawyer (such as one from Reed Law Offices) with good reviews and record, especially one that specializes in auto accident related cases. 

Tax Issues

Taxes are another factor that can complicate the idea of using a contingent lawyer. Because you don't pay your lawyer during the course of the case, you don't report as having paid your lawyer anything. However, since your lawyer's fees come out of the settlement itself, then the IRS will record that you received all of your settlement money, which can be taxed, and then you paid your lawyer. This can diminish the amount of money you receive and make for an uncomfortable tax surprise come next April. Add to this the high cost of medical bills and car repairs, if applicable, and you could potentially lose money if you get in too deep, even in the case of a positive settlement. 

Difficult Cases

However, contingency fees aren't all bad news. One premier example of this is in the case of a potentially uphill case. If your case has been rejected by other lawyers and you still think that your case is winnable, then taking your case to a contingent lawyer will offer a low-risk way to have your voice heard. The best part of this is that you really have nothing to lose other than a few hours in court, and this can come in handy in cases where witnesses or hard evidence are few and far between, like hit-and-run auto accidents.  


28 September 2015