How to Obtain a Personal Loan to Cover Legal Expenses

Legal costs can become complicated. There are numerous kinds, and they can rapidly add up. Although every case is unique, however, many people end up paying thousands of dollars to hire an attorney.

For instance, the legal defense cost for the case of a DUI rapidly climbs up to $8,000. A collaborative divorce could cost between $25,000 to $50,000. Others cases may cost as much, or more, based on the percentage of a lawyer’s fee in the event that he or she prevails in the case.

In addition, you may be asked for a retainer upfront, which will depend on the hourly rate of your lawyer which can easily be thousands of dollars.

Legal issues can quickly escalate into expensive problems. If you are in need of help with the costs, you could think about personal loans such as Bankruptcy HQ to pay for legal costs.

Eligibility Requirements for Legal Loans

There is a myriad of online lenders who offer loans for the cost of lawyer costs. Some of them allow prospective borrowers to view the details of their loan (rates as well as terms as well as limits) without having to conduct a credit assessment, which means you are able to shop around without harming any of your credit scores.

While a small percentage of lenders specifically point to “legal fees” as a justification for loans, however, most lenders permit borrowers with a valid credit score to utilize the loan money however they want.

Credit Score

Eligibility is determined by several unique elements and may differ between lenders. However, the majority of lenders require that borrowers possess a good credit score (670 or greater) as well as a steady source of income, and an active bank account.

However, there are some fair credit loans as well as bad credit loans accessible to people with less-than-perfect credit.

Citizenship Status

Furthermore, borrowers from the United States are typically required to be permanent residents or citizens that are at least the age of 18. There are however non-U.S. citizens’ personal loan options.

Loan Amounts

Another aspect you should consider is the amount the lender will let you take out. It can vary however, many lenders allow loans of $35,000. To $50,000. Some lenders will even approve loans up to $100,000 dependent on the credit rating and your income.

If you are facing soon-to-be legal charges and are looking for a way to pay these then you may want to consider a personal loan might be a feasible option for paying. While you are evaluating your sources of financing, you should be certain to get an idea of how much you might need. Also, look around for the top personal loan lenders and rates.

How Legal Fees Typically Work

If you’re considering taking a personal loan for legal fees it is important to know the kinds of charges that you might be charged. Also, get an idea of the much you’ll need to take out.

While lawyer costs differ, here are the most common fees you’ll likely be required to pay:

  • Retainer Retainers can be viewed as an initial payment and are usually required upfront before the lawyer begins working on the matter. Most of the time the retainer will be utilized to pay for a certain percentage of the costs paid during the course of the case. Retainers typically aren’t refundable However, should you decide to end working with a specific attorney, you will not receive the retainer to cover the remaining fees.
  • Hourly fees Like it does sound it is a cost that a lawyer is charged per hour for working on your case. If, for instance, the fee for a lawyer is $100/hour, and they’re working in your matter for 7 hours their fee is $700. The amount per hour depends on many variables, including the type that case is being handled, the attorney’s experience and experience, as well as your geographical place of residence.
  • Costs of litigation: “Litigation costs” is a generic phrase that refers to attorney fees, court fees, and copying fees and also costs associated with obtaining or hiring witnesses or accessing records, re-creating the scene of an accident, and so on.
  • Cost of contingency A contingency charge is a portion of the amount awarded in case you prevail in the case, that is, a financial amount. In the example above in the event that a case ended in a $60,000 award and your lawyer was charged an amount equal to one-third of the contingency fee (which is standard) this will be around $20,000. The name implies the fee is contingent upon the outcome of the trial and in the event that the lawyer loses, the contingency fee won’t be paid.

About Michael Murphy