How Lawyers Charge: Flat, Hourly and Contingency Fees

Worry about cost keeps a lot of people from calling a lawyer at all. Part of the problem is that legal fees can be confusing. Different lawyers, and different kinds of cases, use different fee arrangements. Here is a plain-English guide to the three most common ones.

Flat fees

A flat fee is one set price for a defined job. You know the cost up front, no matter how many hours the lawyer spends.

Flat fees are common for work that follows a predictable path, such as:

A Chapter 7 bankruptcy
An uncontested divorce, where both spouses agree on the terms
Preparing a single document or attending a single hearing

What to ask: What exactly does the flat fee cover, and what costs extra? For example, does it include a court hearing if a creditor objects, or court filing fees? If the case ends early, will any part be refunded? In California, a lawyer must generally refund any part of a fee that has not been earned.

Hourly rates

With an hourly rate, you pay for the time the lawyer, and sometimes a paralegal, actually spends on your case. Time is usually tracked in small portions of an hour.

Hourly billing is common when no one can predict how much work a case will take, such as:

Contested divorce, custody and support cases
Cases where the other side may fight every step

Many hourly arrangements start with a retainer, which is an advance deposit. The lawyer holds it in a special client trust account and draws from it as work is done. You should get regular bills showing what was done and how much time it took.

What to ask: What are the rates for the lawyer and for staff? How often will I be billed? Will I need to add to the deposit later?

In some family law cases, a judge can order one spouse to help pay the other spouse's attorney's fees so that both sides can have a lawyer (Family Code §§ 2030–2032). Learn more on our family law page.

Contingency fees

With a contingency fee, the lawyer's fee depends on the result. The lawyer is paid a percentage of the money recovered for you, from a settlement or a court verdict. If nothing is recovered, there is no attorney's fee.

This is the standard arrangement in personal injury cases, such as car accidents, slip and falls, and wrongful death claims. It lets people who are hurt, and often out of work, hire a lawyer without paying anything up front.

What to ask: What percentage do you charge, and does it change if the case goes to trial? How are costs handled? Costs are different from fees. They include things like filing fees, medical records and expert witnesses. Find out who pays them, and whether they come out before or after the lawyer's percentage is figured.

California requires many fee agreements to be in writing

California law protects clients here. A contingency fee agreement must be in writing and signed, and it must explain the fee, how costs are handled and how costs affect the fee and your recovery. It must also say that the fee is not set by law and can be negotiated (Business and Professions Code § 6147).

For most other cases where the total cost is likely to be more than $1,000, the lawyer must also use a written fee agreement explaining the fee, the services and both sides' duties (Business and Professions Code § 6148). There are some exceptions, such as emergencies. If a required written agreement is missing, the client can usually void it, and the lawyer is then limited to a reasonable fee.

How fees work in bankruptcy

Bankruptcy has a few rules of its own. Your lawyer must tell the bankruptcy court what you paid or agreed to pay (11 U.S.C. § 329). In Chapter 7, the fee is usually paid before the case is filed. In Chapter 13, part of the fee can often be paid through your monthly plan payments.

How our firm handles fees

In every case, we explain how we charge before you hire us, and we put it in writing. Here's how it works in each practice area:

Personal injury: contingency fee. Your consultation is free, and you pay no attorney's fee unless we recover money for you.
Family law: retainer billed hourly. You pay a retainer up front. As we work on your case, time is billed against the retainer at an hourly rate, with one rate for the attorney and a lower one for our paralegal. You get a clear accounting of how the retainer is used.
Bankruptcy: flat fee. Your consultation is free. If you file, you pay one flat attorney's fee, plus the court's filing fee and a credit report fee. You know the total before we start.

Flat-fee family law document help through CourtReady

Not every family law matter needs full representation. If you and your spouse agree on the terms, or you mainly need help getting your paperwork right, we've partnered with CourtReady for flat-fee document preparation packages:

Uncontested divorce assistance, starting at $995. For spouses who generally agree on the terms and want their paperwork prepared correctly. Includes a guided intake, preparation of the agreed-upon California dissolution documents, and attorney review.
Custody and Request for Order assistance, starting at $995. For asking for new custody or visitation orders, or responding to a Request for Order you received. Includes preparation of the request or response, an attorney-reviewed declaration in your own words, and organized exhibits.
Hearing preparation, starting at $750. For walking into your family court hearing organized and ready to present your side. Includes a review of your court documents, exhibit organization, a hearing checklist and an attorney consultation or coaching session.

Package prices and what each one includes are set by CourtReady. Court filing fees are separate.

What this means for you

Ask how you will be charged at the first meeting. A good lawyer will explain it plainly.

Get it in writing and read it before you sign. Ask about anything you don't understand.

Ask about costs, not just fees. They can add up, especially in injury cases that go to trial.

Have questions about cost?

Don't let fear of legal fees keep you from getting answers. Call (562) 612-7806, available 24/7, or request a consultation. We will explain how fees would work in your case before you decide anything. Hablamos español.

This article is general information, not legal advice. Every case is different, and past results do not guarantee a similar outcome.

How lawyers charge: flat fees, hourly rates and contingency fees, explained