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How Contingency Fees Work in Personal Injury Cases

2 min read

How Contingency Fees Work in Personal Injury Cases

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.

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