Education
How Contingency Fees Work in Personal Injury Cases
• 2 min read
Contingency fees let claimants hire experienced attorneys without upfront cost. Here's how the math works.
Personal injury attorneys almost always work on contingency — they're paid a percentage of the settlement or verdict, with nothing owed if the case loses.
Standard contingency fees range from 33% (pre-suit settlement) to 40% (after suit is filed) of the gross recovery. Some specialized cases (mass tort, medical malpractice) use different structures.
Costs (expert fees, depositions, filing fees) are typically advanced by the attorney and reimbursed from the settlement, often capped to avoid running out of recovery.
Net recovery to the claimant = settlement − attorney fees − case costs − medical liens − pre-settlement funding payoff. Larger settlements obviously absorb costs more comfortably.
AARC's funding decisions account for typical contingency-fee economics in projecting net recovery.
Call (800) 297-3834 with questions about how funding fits into your overall case economics.
Frequently asked questions
- Will taking an advance reduce my settlement?
- The advance plus its flat fee is repaid out of the settlement, so your net proceeds are reduced by that amount. It does not affect the gross value your attorney negotiates.
- Is a pre-settlement cash advance a loan?
- No. It is non-recourse funding tied to your personal injury claim. There are no monthly payments, and if your case does not recover, you owe nothing.
- Do I need good credit or a job to qualify?
- No. AARC does not run a credit check and does not require employment or income verification. Approval is based on the strength of your claim and your attorney's representation.
- How fast can I get funded?
- Most approved applicants receive funds in as little as 24 hours once AARC has the case documents from your attorney.
- How much does it cost?
- AARC uses a flat fee rather than compounding monthly interest. Typical advances are $500, $750, or $1,000, and the illustrative payoff at settlement is 2x the advance amount.
About the author
Written by the funding team at AARC — Accident Advance & Resource Center. AARC underwrites pre-settlement cash advances for personal injury claimants and works directly with plaintiff attorneys across 45 states. Our team reviews case documentation daily and writes from that firsthand experience.
This article is general information, not legal or financial advice. Always confirm details with your attorney. Contact AARC or call (800) 297-3834 with questions about your specific case.
