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9 financing options to pay your legal fees

From personal loans to crowdfunding, here are ways to finance your legal fees.

Legal fees can mount quickly. If you have savings, the most cost-effective way to pay for legal fees is to pay up front and out-of-pocket. But for those of us who can’t afford this kind of expense all at once, here are 9 financing options to pay for your legal fees.

1. Personal loan

Best for: A one-time legal expense

You can generally use a personal loan for any legitimate expense, including legal fees. Getting a personal loan for legal fees is best for when you know ahead of time how much you need to spend — like paying for a consultation or a fine. You can typically borrow between $1,000 and $50,000 at once and pay it back in monthly installments over a fixed period of time, usually between 1 and 10 years.

Compare loans for legal fees

Name Product Interest Rate Loan Amount Loan Term Requirements Credit Score Link
LoanConnect Personal Loan
Secured from 1.90%, Unsecured from 5.75%-46.96%
$500 - $50,000
3 - 120 months
Currents debts must total less than 60% of income
Min. credit score: 300
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An online broker who helps inform clients towards better finances. Get pre-approved by different lenders for unsecured or secured loans in 5 minutes with any credit score.
goPeer Personal Loan
8.00% - 31.00%
$1,000 - $25,000
36 - 60 months
Recommended income of $40,000 /year
Min. credit score: 600
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More Info
Canada's first regulated consumer peer-to-peer lending platform offering unsecured loans. Connects creditworthy Canadians looking for a loan with Canadians looking to invest. goPeer strives to offer the most competitive interest rates. Apply in minutes and get a response within 24 hours.
Spring Financial Personal Loan
17.99% - 46.96%
$500 - $15,000
9 - 48 months
Min. income of $1,800 /month, 3+ months employed
Min. credit score: 400
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More Info
An online lender offering unsecured personal loans and credit builder loans. Those filing for bankruptcy or a consumer proposal can also apply. If you're not eligible for an unsecured loan, you may be offered a loan to help rebuild your credit.
ConsumerCapital Personal Loan
19.99% - 34.99%
$1,500 - $12,500
24 - 60 months
Min. income of $1,900 /month, 6+ months employed
Min. credit score: 600
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More Info
An online lender that provides fast unsecured personal loans. Complete an application in less than 10 minutes and get a decision within 24 hours. For faster loan approval, complete the Flinks bank integration in the app.
SkyCap Financial Personal Loan
12.99% - 39.99%
$500 - $10,000
9 - 36 months
Min. income of $1,200 /month, stable employment
Min. credit score: 550
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An online lender offering unsecured personal loans to borrowers with a wide range of credit scores. Apply in less than 5 minutes and if approved, receive financing in as little as 24 hours.
FlexMoney Personal Loan
18.90% - 46.93%
$500 - $15,000
6 - 60 months
Min. income of $2,000 /month, 3+ months employed
Min. credit score: 500
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More Info
An online lender offering flexible unsecured loans. Apply in less than 10 minutes and if approved, receive financing in as little as 24 hours. Pay off your loan at any time.
Loans Canada Personal Loan
Secured from 2.00%, Unsecured from 8.00% to 46.96%
$300 - $50,000
3 - 60 months
No min. income or employment requirements
Min. credit score: 300
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More Info
An online broker with the largest lender network in Canada. Get matched for free with lenders offering both unsecured and secured loans through one quick application regardless of your financial situation.
OFFER
Mogo Personal Loan
9.90% - 46.96%
$200 - $35,000
6 - 60 months
Min. income of $13,000 /year
Min. credit score: 500


Mogo offers a 100-day money-back guarantee. If you're not happy with your loan, pay back the principal and get your 100 days of paid interest and fees back.
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An online lender who aims for a hassle-free process through same-day unsecured loan approval and funding. Get a loan fast and track your credit score for free.
Fairstone Personal Loan (Unsecured)
26.99% - 39.99%
$500 - $25,000
6 - 60 months
Able to make monthly repayments on your loan
Min. credit score: 560
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More Info
An online lender with a team dedicated to professional service. Get a quote for an unsecured loan without impacting your credit score. Receive funds within as little as 24 hours. No prepayment fees.
Fairstone Personal Loan (Secured)
19.99% - 23.99%
$5,000 - $50,000
60 - 120 months
Must be a homeowner
Min. credit score: 560
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More Info
Use your home equity to get a secured loan up to $50,000 with flexible repayment options and a long loan term. Get a quote without impacting your credit score.
Loan Away Personal Loan
19.90% - 45.90%
$1,000 - $5,000
6 - 36 months
No min. income or employment requirements
Min. credit score: 300
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More Info
A lender that approves unsecured loans in as little as 20 minutes. Get affordable monthly repayments with any credit score.
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Am I eligible for a personal loan?

If you’ve run into some trouble with paying off debt in the past, you could have trouble qualifying for credit from a lender. Generally, you’ll need to meet the following requirements to be eligible for a competitive personal loan:

  • Have good or excellent credit
  • Have a steady source of income
  • Be a Canadian citizen or a permanent resident with a valid Canadian address
  • Have a reasonable a debt-to-income ratio
  • Have a working bank account
  • Be 18 years of age, or the age of majority in your province or territory

2. Personal line of credit

Best for: A drawn-out legal proceeding

When you’re not sure how long you’re going to need to pay legal fees, you might want to look into a personal line of credit. Instead of borrowing a set amount of funds just one time, you have access to a certain amount of funds (up to your credit limit) at any time. You only have to pay interest or fees on the amount you actually borrow and can typically renew your credit line as many times as you want. Find out which lenders offer personal line of credit.

3. Contingency fee

Best for: Someone suing for damages

Expecting to win a settlement? You might want to ask your lawyer if they’d be willing to work your case for a contingency fee. Instead of paying your fees upfront and out of pocket, a contingency fee allows you to pay your lawyer with a percentage of the damages you’re paid.

Contingency fees are usually not available for all types of cases.

4. Awards of attorneys’ fees

Best for: Someone suing for damages

Awards of attorneys’ fees work almost exactly like contingency fees. The difference is that instead of your lawyer taking a percentage of your damages, the court orders the defendant to pay your legal fees. This is generally only an option if your lawyer thinks you have a strong legal case.

Best for: Immigration, defendants in criminal or civil cases

Ask your lawyer if they’d be willing to draw up a legal payment plan to help you cover the cost of your case. Many have standard legal plans — and not all charge interest or extra fees. Some are also willing to accept a partial upfront payment plus smaller installments over time.

This could potentially be an easier, less expensive option than third-party financing like a personal loan if you have bad credit. That’s because you might not need to prove your creditworthiness to qualify, and you’ll have more room to negotiate your terms. The downside is you could end up losing your legal representation if you fall behind on repayments.

6. Crowdfunding

Best for: Cases that the public might stand behind

Trying to keep costs down? Reach out to your social network to raise money for your legal fees. You’ll likely pay the platform a percentage of the funds you earn, so factor in platform costs when you’re setting your goal.

There are many popular crowdfunding platforms including Kickstarter and GoFundMe.

7. Credit card

Best for: Any legal fee you can pay off quickly

Sometimes the easiest way to pay a one-time legal fee like a consultation is to put it on your credit card. Most law firms accept them, and it’s an easy way to meet spending minimums and earn miles or points. Your best bet would be to consider using a balance transfer credit card which would allow you an intro period of usually 6 to 9 months at a very low interest rate so you can make payments towards the balance.

8. Pro bono lawyer

Best for: High-profile cases, low-income clients

Lawyers sometimes reduce their fees or waive them entirely on cases that they think could generate a lot of press or for low-income clients. Some law firms even require lawyers to take on a certain number of pro bono cases each year.

To find a pro bono lawyer near you, check out the Canadian Bar Association’s resources.

9. Friends and family

Best for: Smaller legal fees

You can also reach out to your relatives and close friends for help covering your legal fees. You might not have to pay interest and if you do, it’ll probably be a low rate. Just be aware that you could damage your personal relationships if you’re unable to pay it back.

FlexMoney Personal Loan

FlexMoney Personal Loan

From

18.9 % APR

rate

  • Same day funding
  • Quick online application
  • Pay off loan anytime

FlexMoney Personal Loan

Apply online in less than 10 minutes. If approved, receive funds in as little as 24 hours. Pay off your loan at any time.

  • APR: 18.90% - 46.93%
  • Loan amount: $500 - $15,000
  • Loan term: 6 - 60 months
  • Fees: No application, origination or prepayment fees
  • Min. credit score: 500
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Promoted

The total cost of legal fees varies wildly, depending on your specific situation and deeds. These are some common fees you might run into in addition to the lawyer’s hourly rate.

  • Consultation fee. Either a fixed or hourly fee for your first meeting with your lawyer, typically paid upfront and is based on your lawyers hourly rate. Lawyers generally require a consultation before you decide to use their services. You typically don’t need to pay this if you have a flat-fee case.
  • Retainer fee. There are two main types of retainer fees. Either it’s a set fee you pay into an account that your lawyer withdraws from as costs build up or it could also act as a down payment on your lawyer’s services and establishes that they’re working on your case. These vary widely depending on the lawyer and your case.
  • Hourly rate. You can pay your lawyer per hour of work on your case. Rates can vary depending on the city, province or territory that you live in, your lawyer’s seniority and type of legal work. You’ll typically pay more if you hire a senior partner at a law firm in Toronto or Vancouver, for example. Typical cost: $200 to $500 per hour, as much as $1,000 per hour in specialized legal cases
  • Flat fee. A fee that covers the total cost of your case, common with cut-and-dry cases like an uncontested divorce or drawing up a will.
  • Contingency fee. You agree to pay your lawyer a portion of the amount you’re awarded in your case — if you win. Some lawyers offer this fee on a sliding scale depending on how long it takes to settle the case. This could be 25% to 40% of your settlement amount.

  1. Compare lawyers. Shopping around not only lets you find a lawyer that’s right for your case, but will also help you get a feel for how much most lawyers charge for your particular type of case — giving you the confidence and leverage you need when you negotiate your fees.
  2. Set a budget. This seems simple, but knowing exactly how much you can afford to pay in legal fees — including extra financing — can help you weed out lawyers that charge more than you’re able to pay.
  3. Keep calls quick and to the point. Paying by the hour? Time is money. Don’t waste it with small talk and try to prepare questions ahead of time.
  4. Be organized. Clearly label and organize your documents and paperwork. Write summaries of key facts that your lawyer can clearly refer to so they don’t have to spend extra time on busywork.
  5. Ask for six-minute billing increments. Many lawyers give you a choice between six- and 15-minute billing increments. Choosing the smaller one gives your lawyer less of a chance to round bills up and could potentially save you hundreds, or even thousands of dollars.

Bottom line

Legal fees can deplete your savings and hurt your finances if you’re not prepared. Luckily, there’s usually a way to find financing if you’re caught by surprise or simply can’t cover the costs right away. If you can’t find a lawyer to work pro bono and don’t expect a settlement, a personal loan can be a reasonable solution for most legal cases.

To get the best deal on your legal financing, compare your options in our table above and find a favourable deal that will help you pay off your legal fees as quickly and cheaply as possible.

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