How Payment Structures can make legal services more affordable

Different Payment Options

Low-bono legal professionals often offer a variety of legal payment options to make legal services more affordable.

Traditional Payment

Traditional payment options are not very flexible. Usually, a lawyer may ask for an advance fee deposit and then will bill hourly. They will take their bills from the advance payment, held in a trust account called an Interest on Lawyer’s Trust Account (IOLTA),  that you have paid them. Once that is gone, some will ask for another large lump sum to replenish the prior advance fee deposit. This method is called an evergreen trust. However, others might just do a more pay as you go method after the advance fee is depleted. 

Pay-as-you-go

First, a low-bono attorney may charge you an hourly rate where you pay as the case goes on. No advanced fee deposit would be charged in this case. This tends to be more affordable than traditional methods because you don’t have to come up with thousands of dollars up front to even start the legal process.  You may be charged on a weekly basis, biweekly basis, or monthly basis unlike the usual monthly basis. The timing of how frequently you pay will be something that you work out with your attorney. Usually, this type of payment also allows for greater flexibility in making payments.

Flat-fee

Second, another affordable alternative is the flat-fee method. With this method, you pay set amount for certain services. A good non-legal illustration of this is if you went to get a haircut and agreed to pay $40 dollars for the haircut. A set amount of money you give for a service the (haircut). In the legal world, this might look like you paying $1000 dollars up front for someone to draft the necessary starting documents for a dissolution.  Usually, this money is paid before you begin services but it usually encompasses all emails communications with you for that service as well as the service itself. Importantly, no matter how many hours it takes the legal professional to complete the task, you pay that set amount for the service.  It is important to note that this money is the attorney’s money upon receipt, so it will not be placed in an IOLTA account as with an advanced fee deposit.

Sliding scale

Third, a low-bono professional might also use a sliding scale with you. So, instead of a set hourly rate,  of $__ dollars based on your income you might end up paying only a percentage of their normal hourly rate. Professionals might use different income scales. Also, be aware that some professionals also have significantly higher hourly rates than other professionals. 

Conclusion

A good practice is to always ask your lawyer about their billing practices before entering into any fee agreement with the lawyer. You can ask them about their hourly rate, how frequently they bill, and what flexible payment options they have available.  Remember, you can always have another lawyer review any potential fee agreements and that is a best practice when reviewing fee agreements.

Author:
Jordan Kostelyk, attorney
Jordan is a low-bono practitioner who offers services primarily in Snohomish and King. For more information about her practice visit www.everlastinglegalsolutions.com

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