5 Ways to Avoid Legal Bill Sticker Shock

I read this most recently in New York Enterprise Report www.nyreport.com. Good Solid Information from Tim Green co-founder of Fizzlaw.com. Fizzlaw helps small business owners and entrepreneurs find budget-conscious lawyers. You can subscribe for a free copy of New York Enterprise Report it's a great read.

5 Ways to Avoid Legal Bill Sticker Shock

Have you ever received a legal bill totaling twice the amount of the initial estimate? Unfortunately, legal bill sticker shock can happen easily for business owners and entrepreneurs who are busy starting and running companies rather than monitoring legal price tags. One way to avoid the shock of an unexpectedly high legal bill is to just expect to pay much more than you are quoted; but, there are better ways that ensure that you know approximately what your bill is going to be before you even receive it.


1. Avoid paying for a learning curve.

Talk to several lawyers before you hire someone. You want to be certain the lawyer you hire has the experience you need. Ask specific questions to determine if the lawyer has handled similar cases to or matters as yours—and what those outcomes were. Lawyers interested in your case are likely to give you some free advice. Take advantage of it. They may offer free insight on things to consider when forming a company or the best approach to a piece of litigation. Ultimately, you should go with your gut: Hire someone who is interested in helping you and someone with whom you are comfortable.


2. Ask for a flat-fee arrangement (at least for a portion of the work).

Not all lawyers are open to flat-fee arrangements, but it never hurts to ask. Assuming the fee is reasonable, knowing up front what your legal work will cost is an ideal situation.

However, this puts the onus on you to determine how much you’re willing to pay to resolve a legal issue. So you need to do some leg work to determine a fair price (hint: talk to several lawyers). A flat-fee agreement needs to be very clear about what will—and won’t—be handled by your lawyer.


3. Establish a budget up front, and stick to it.

This means communicating your budget clearly to your lawyer before the project even starts. Be sure you and your lawyer have clearly communicated what his or her work involves and then put it in writing. Having something in writing will have more impact than a simple verbal estimate. Most importantly, monitor the budget! Get regular reports on time and costs, especially when being billed by the hour. If she or he must go over budget, discuss why.

4. Do as much as prep work as possible.

Imagine someone sending you a box of documents and asking you to sort through it. That takes time; and if it’s your lawyer, it takes money, too. Provide your lawyer with organized information in addition to timely answers. Go through your to-do items with your lawyer and ask which ones you could do yourself to help cut costs.

5. Communicate efficiently (especially when being billed by the hour).

It’s natural to want to discuss things with your lawyers because they are smart, you like them (after all, you chose them), and they have good experience. But without regular budget updates (see point 3), it may seem as though they are a “free good.” When you understand that the seemingly short conversation you had last week cost you $400, it will modify the way you talk to your lawyer. Think twice before you pick up the phone to call your lawyer or tap out a lengthy email to him or her. Your calls and emails take time. How important is the question? Some things sort themselves out. When you do reach out, be specific, concise, and coherent.

Good project management is the key to avoiding sticker shock with your legal bills. Manage the entire process—from finding a lawyer that is the best fit for your needs to establishing a budget and keeping an eye on the lawyer’s activities through close and consistent communications.

Managing Expectations in the Legal Relationship

Just a quick note on managing expectations in the legal relationship. As an independent paralagel, I deal with many Attorneys, in particular those that run a one to three person office and or in many cases it is just the Attorney with a couple of virtual offices. Here are some important facts to remember:

1. Not all Attorneys are good attorneys, sorry to say this but it is True. Attorneys who do not have large firm experience, business and or entrepreneurial training do not always make good business people on a smaller scale. Issues such as time mamagement and timely follow up on matters will always be an issue if the Attorney does not have some kind of support even if it is outsourced.

2. Attorney personal life issues( family, addiction, money management,other) can get in the way of good lawyering, but this may not be known until after you have paid the attorney and have engaged his or her services. If this is a problem reach out for help and or contact your local Grievance Committee on steps to take and or to file a complaint.


3. Beware of paying a high retainer fee to an Attorney who is unproven and or he/she did not come recommended. Often times then not, unless it is a criminal matter the Attorney will sit on the retainer and stall you. This is not always the case, but unfortunately, it happens more often than not. Try to do as much background research on the Attorney as you can, an initial consultation with the Attorney is a sales pitch for lack of a better description. Some attorneys believe having a law license is a license to print money so to speak; this has to be challenged.

4. Be realistic about timeframes and possible outcomes and settlements. The court system is backed up and if you are dealing with a business collection, breach and any other civil litigation type of issue, be ready to wait the calendar.

More Later......

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FHA Condo Approval: How can it help you buy a condo

Photo Caption from Soleil Lofts

FHA Condo Approval: How can it help you buy a condo
Condo.com > Resources > News > FHA Condo Approval: How can it help you buy a condo By Adam Kujacznski Tuesday August 11th, 1:43 PM

FHA insured mortgages offer many benefits and protections that only come with FHA:

Easier to Qualify: Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify.

Less than Perfect Credit: You don't have to have a perfect credit score to get an FHA mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a conventional loan.

Low Down Payment: FHA loans have a low 3.5% downpayment and that money can come from a family member, employer or charitable organization as a gift. Other loan programs don't allow this.

Costs Less: FHA loans have competitive interest rates because the Federal government insures the loans. Always compare an FHA loan with other loan types.

Helps You Keep Your Home: The FHA has been around since 1934 and will continue to be here to protect you. Should you encounter hard times after buying your home, FHA has many options to help you keep you in your home and avoid foreclosure.

FHA does not provide direct financing nor does it set the interest rates on the mortgages it insures. For the best interest rate and terms on a mortgage, you should compare mortgages from several different lenders. In order to initiate the loan application process, please contact an FHA approved lender.

An FHA insured mortgage may be used to purchase or refinance a new or existing 1-4 family home, a condominium unit or a manufactured housing unit (provided the manufactured housing unit is on a permanent foundation).

HUD's internet site can provide additional information on FHA mortgages by going to:http://www.hud.gov/buying/index.cfm

To search for condos that are FHA approved please visit https://entp.hud.gov/idapp/html/condlook.cfm

*Source: (U.S. Department of Housing and Urban Development - http://www.hud.gov)
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