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Generally, costs are determined using four methods widely accepted in the legal profession: (1) a flat fee; (2) hourly rate; (3) contingency; and (4) percentage. A flat fee is am amount determined in advance and agreed to by the client and his or her attorney. Flat fees are most often used for specific legal work such as representation in a misdemeanor criminal case, a driving under the influence charge, uncontested divorces, simple wills and other relatively straightforward cases. An hourly rate is often charged for the drafting of documents such as complex wills, business litigation, contested divorces and litigation where it would be impossible to determine in advance the amount of time required. Contingency fees are the acceptable method of compensation in those cases involving the collection of sums of money for certain contracts, personal injury or death, medical malpractice, automobile and truck accidents, etc. Legal fees are based on a percentage of the settlement received. Finally, in some cases such as real estate closings, fees are based on a specific percentage of the sale price of the property involved. Depending on the type of legal work involved, an advance payment may be required. We encourage our clients to ask questions and to feel free to discuss legal costs.
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