How to Get a Personal Loan for Legal Fees
It can be difficult to understand legal fees. They are often complex and come in many different forms. Each client’s case is different, but often times they end up spending thousands of dollars to hire a lawyer for their legal services. With this in mind, some clients investigate getting a personal loan for legal fees.
To get a better understanding, someone who needs legal defense for something like a DUI, can expect to pay upwards of $8000. The total for a couple getting a divorce can be anywhere between $20,000 to $60,000 or more, depending on the income and assets, as well as the lawyers cut if they win the case. Considering your attorney and their hourly rate, you could also be asked to pay a retainer fee that can cost thousands of dollars.
All in all, your legal issues can rapidly become a money problem, and there are ways to get help hiring a lawyer. Taking out a loan to afford your lawyers fees, is one of them.
Who is Eligible for Legal Loans?
Online lenders who provide loans for attorney fees are a dime a dozen. A wide variety of these lenders offer access to the loan info without a hard credit check for the borrower. This means you can compare and contrast your different options without your credit score taking a hit.
A lot of lenders offer the ability for prospective borrowers to use the loan funds however they like, a few will explicitly detail “legal fees” as your sole purpose for the loan.
A Positive Credit Score
Your potential to secure this loan takes a few different factors into consideration, and might change based on your lender. Typical lenders won’t accept your application without a credit score of 670 or higher, a solid source of income, and a bank account that is currently active.
If you don’t meet the requirements your lender has in place for giving you a loan, make sure to research bad credit loans and fair credit loans. Often times, specific lenders will offer personal loans to people with scores lower than 670, but they must pay a higher APR on their loan for legal fees.
Being a U.S. Citizen
Borrowers in the United States are almost always required to be at least 18 years and prove that they are a permanent resident or citizen of this country. If you fall into this category, research personal loan options for non-U.S. citizens.
Your Requested Loan
One more essential factor when researching a lender for your loan for legal fees, is how much do you need to borrow, and how much will they let your borrow. While some lenders approve loans anywhere from $30,00 to $60,000, depending on your credit score you might get approved for loans as much as $100,000.
Do you have current or upcoming legal fees and can’t find a way to pay for them? Opting for a personal loan might be a good route to look into. While weighing your options for legal fee financing, make it a point to calculate the amount you are requesting, then learn a bit about the best personal loan lenders and their rates.
How Do Legal Fees Work
It’s essential that you figure out the fees and costs associated with borrowing from your chosen lender for your legal fee loan. You’ll get the best results if you know how much money you need, and what it will take to pay that back.
While the fees of specific lawyers, in specific fields, can fluctuate, these are some common legal fees to consider:
- Retainer fees: A retainer can be thought of as a down-payment for legal fees and is generally paid up front before the lawyer even begins to process the case. Often times, your retainer fee is applied to a portion of the fees that are gathered throughout your relationship with your attorney. Most of the time, retainers are non-refundable, so keep this in mind if you are considering concluding business with your attorney or hiring a new one.
- Hourly rates: These, of course, are the fees that attorneys charge clients for each hour of work done on your case. Let’s say the lawyer’s fee is $250 per hour. If they work on your case for four hours, that’s $1000 you’ve accrued and this fee can be dependent on the type of case, your attorney’s experience, and which state you live in.
- Litigation costs: This is a blanket term that groups things like court fees, attorney fees, and copy fees, in addition the cost of collection or producing witnesses, private record access, scene re-enactment, etc.
- Contingency fee: A contingency fee is a small portion of the total awarded to your attorney for winning the case for you. For instance, if your case rewarded you with $100,000 and your attorney’s requested contingency fee was 1/4, you would owe them $25,000. The fee is ‘contingent’ on the results of your trial, and will not be paid out if your lawyer lose the case for you.