How to pay for a lawyer with no money

Life is full of twists and turns, making it difficult to predict exactly when you’ll need to hire a lawyer. Most people don’t have money set aside for legal emergencies, but even if you do, legal fees can quickly stack up and deplete your savings. 

Whether you’re navigating a real estate transaction, going through a divorce, or restructuring your business, chances are you’ll need legal representation at some point throughout your life. If you find yourself in this situation, you might be wondering how to afford a lawyer.

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In this article, we’ll discuss everything you need to know about lawyer fees, including what types of legal fees that exist and how to pay for a lawyer with no money. 

Types of legal fees

Before hiring an attorney, it’s important to understand the types of legal fees a lawyer might charge. Legal fees vary depending on a lawyer’s payment structure, professional experience, and the nature of your case. Here’s a breakdown of common legal fees charged by lawyers. 

Hourly fees

It’s common practice for lawyers to charge an hourly rate. An hourly fee covers the time a lawyer spends working on a client’s case. Attorneys typically charge $100 to $400 per hour. However, hourly fees vary depending on location, attorney experience, and practice area. 

Contingency fee agreement

Contingency fees are only paid when a lawyer wins or successfully settles a case, a common practice in personal injury law. If the case is lost, no payment is required, making this a favorable option for clients unable to pay upfront legal fees.

Flat fees

Flat fees are fixed charges for specific legal tasks, like drafting documents or real estate closings. The cost varies by task complexity—simple tasks like drafting a will may cost $300, while more complex matters can exceed $5,000.

Retainer fees

Retainer fees are paid upfront to secure legal services, often as a down payment. They are calculated by multiplying the lawyer's hourly rate by the estimated hours for the case. Retainers range from $2,000 to $100,000, depending on the case and the attorney's rate.

Litigation fees

Lawyers charge litigation fees for resolving disputes through the court system. Litigation fees usually cover court appearances, filing court documents, and other legal work. The cost of litigation fees depends on the complexity of the case and the lawyer’s experience. Litigation fees can cost between $150 and $800 per hour. 

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Disclaimer:

The figures listed above are only estimates. The actual cost of legal fees varies depending on the jurisdiction, case complexity, and the reputation of the lawyer in question. 

How to pay for a lawyer with no money

At first glance, these amounts can be overwhelming. You may think you have no other choice but to take out a loan to cover lawyer fees. However, there are ways to obtain legal services without having to pay full price. Consider the following legal fee financing options before taking on additional debt.

Legal aid and pro bono services

Low-income individuals might qualify for free or low-cost legal services through legal aid or pro bono programs. Legal aid is a term used to describe services that provide access to legal assistance for those who can’t afford it. Pro bono work is work done “for the public good,” which lawyers participate in by offering free legal services. 

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There are several legal aid and pro bono programs to explore. Here are a few places you can start looking:

Legal aid societies

Legal aid societies provide free and low-cost legal services to low-income individuals. Services include document preparation, mediation, and legal representation for civil cases. Local bar associations and municipal governments often sponsor these organizations. 

Legal clinics

Similar to legal aid societies, legal clinics render legal services to individuals who cannot afford them. Legal clinics are sponsored by the Legal Services Corporation (LSC), a nonprofit that funds civil legal aid organizations across the country. These clinics either take clients themselves or redirect clients to registered pro bono firms and attorneys.

Pro bono law firms

Clients can also contact a pro bono law firm directly. Some law firms exist exclusively to provide legal aid to low-income individuals, while others have a pro bono arm. These firms are funded by grants, private donations, or LSC contributions. You can find pro bono law firms by checking your state bar association website or reaching out to your local courthouse for referrals. 

Pro bono attorneys

In addition to clinics and law firms, clients can reach out to individual attorneys who might be willing to represent them, free of charge. The American Bar Association (ABA) recommends all U.S. lawyers donate at least 50 hours of pro bono work every year. 

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Even if an attorney is not necessarily a pro bono lawyer, they might take you on as a client if they believe they have a good chance of winning your case or are touched by your circumstances. Lawyers who don’t have the bandwidth to take on additional clients may be willing to offer free legal advice. 

Legal loans

While legal aid and pro bono services are readily available, they don’t normally cover criminal cases. These programs also have income restrictions well below the poverty line, making it difficult to qualify. If you need to pay for a criminal defense lawyer or don’t meet the maximum income requirements, a legal loan might be an option.

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Legal loans are unsecured personal loans offered by lawyers or private lenders that help cover legal fees. Taking out a personal loan for legal expenses can ease the financial burden of hiring a lawyer by avoiding upfront costs and spreading out payments. Loans for attorney fees have payment plans of 2-7 years, or longer, depending on the lender.

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Not all lenders offer specific loans for legal fees, but they might offer personal loans, which work similarly. Eligibility criteria for these loans often include:

• Credit scores: Personal loans usually require credit scores of 580 or higher. However, borrowers with a credit score above 670 have a greater chance of approval.
• DTI ratios: Borrowers should have a debt-to-income ratio (DTI) of 43% – or lower. Some lenders cap DTI at 36%.
• Income verification: Borrowers should also have a stable and sufficient source of income. Most lenders require a minimum annual salary of $25,000 - $35,000. However, annual income requirements vary based on the amount being borrowed. 
• Legal status: Lenders typically require borrowers to hold U.S Citizenship or legal residency, such as a valid visa. Some lenders may consider nonresidents if they have a U.S. citizen or permanent resident co-signer. 

Legal insurance

Legal insurance is an insurance policy that covers the unexpected cost of legal services, similar to homeowner’s insurance. Multiple organizations offer legal insurance, such as the American Bar Association, U.S. Legal Insurance, and Legal Zoom. 

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Policyholders pay a monthly or annual premium to access a wide range of legal services, including court representation, document preparation, and consultations. Paying for legal insurance is surprisingly affordable, with plans starting as low as $17 per month. 

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Legal insurance might make sense for individuals and families anticipating big life events, such as marriage, divorce, or adoption. These events are often expensive and require legal assistance. Taking out a legal insurance policy can help you save on overall legal fees, predict legal expenses, and access legal advice as needed. 

Credit cards

Some attorneys accept payments via credit card. If you have a sizable credit limit and are able to make monthly payments, consider using your credit card to pay for legal fees. Similar to a legal loan, a credit card allows you to spread payments over time, allowing you to pay for legal fees via minimum monthly installments. Just be mindful of your APR. Carrying a lofty balance for several months could add to the cost of financing. 

Home equity

Another way to finance legal fees is to take out a home equity loan, home equity line of credit (HELOC), or home equity investment (HEI). Leveraging home equity usually allows borrowers to obtain financing on better terms, since the property is being used as collateral.

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A home equity loan provides borrowers with a lump sum of cash, while a HELOC provides borrowers with a line of credit. In both cases, you’ll have to pay back the amount you borrowed at a fixed, or variable interest rate. A home equity investment provides more flexibility by allowing homeowners to repay in one lump sum at any time during a 30-year term, often at the time of a home sale or refinance. 

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HEIs allow homeowners to receive a lump sum of cash in exchange for a portion of their home equity in the future. Homeowners enjoy no monthly payments and more lenient credit checks than if they were to go through a traditional lender. 

Final thoughts on paying for lawyer fees

Lawyer fees can present a significant financial burden for anyone, especially if they come unexpectedly. Legal aid and pro bono services can help cover civil legal services, but only if you meet certain income limitations. 

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Legal loans and credit cards can provide relief for criminal proceedings, but they often come with high interest rates, which could add to your total legal costs. Legal insurance may be the best option for individuals who can anticipate future legal needs, but if legal fees catch you by surprise, consider an HEI from Point. 

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Fund your legal fees with a Home Equity Investment from Point. Homeowners who choose an HEI don’t need to worry about keeping up with monthly payments or going through an extensive credit check. Explore Point’s HEIs here.