The legal process can be lengthy and expensive, and the time it takes to receive your cash settlement can seem daunting. Upon this realization, some plaintiffs decide to take advantage of legal funding.
Legal funding is referred to by many as a lawsuit loan (also known as a lawsuit cash advance or pre-settlement funding). It’s a non-recourse cash advance against the monetary compensation one can expect to receive at the end of a trial. The reason why it isn’t like other loans is because there is no recourse from the funding company if your case ultimately fails. So, unlike a bank, a settlement loan is a no-risk proposition for the consumer.
If you have already filed a lawsuit, you’ve probably already realized what a lengthy process it can be. While you wait for your case to see the inside of a courtroom, months or even years could pass by. You know you’ll be receiving a large settlement at the end of trial, but you have bills and expenses that can’t wait that long. And if you are one of the many plaintiffs that have filed personal injury cases, you may have been injured on the job and are now unable to work. Not only will you not be earning a paycheck, you now have mounting medical and/or legal bills that are difficult to pay on time.
A pre settlement loan can be a helpful option for any plaintiffs dealing with financial strain, and a great source of income over the many months it takes for a case to make it to trial. Borrowing against your settlement can help you stay afloat financially and empower you to hold out until the end of your trial so that your lawyer can get you the best possible settlement amount.
Below are a few frequently asked questions about your lawyer’s role in obtaining a lawsuit loan.
Do lawyers give advances on settlements?
The short answer is no. In most jurisdictions, it is illegal to provide an advance on a case, however, in states like Texas (TX) and Louisiana (LA) there are rules that allow for it.
While your attorney will be part of the process toward procuring a pre settlement loan, the cash does not come out of your lawyer’s pocket. The money will be loaned to you from a funding company with clear repayment terms lain out in the contract. Payback will not be expected until after your case has already been resolved. Lawyers simply assist in this process to make sure you’re getting every penny that you deserve. They don’t provide the actual funding.
In fact, it won’t cost your law firm any money at all. Your lawsuit loan won’t affect your ultimate settlement value at the end of trial, and it won’t take any money away from what your lawyer can expect to receive, either. Their pay will not be affected. However, your settlement check will be less as a result of your lawsuit cash advance.
Can I get a pre settlement loan without an attorney’s approval?
Applying for a lawsuit loan will require at least a modicum of assistance from your lawyer. Once you fill out a preliminary application with the presettlement funding company, they will immediately contact your lawyer to request any legal documents that can assist them in evaluating your case. Most funding companies won’t ask your lawyer to fill out a lengthy application on your behalf; they simply need to request a few key documents to help assess the merits of your claim. If the merits of your case are sound, you will receive your cash advance within 24 – 48 hours. It really is that simple.
However, a funding company will not be able to grant you a cash advance without reviewing the details of your case beforehand. That information can only be supplied by your lawyer. And your attorney must sign the funding contract, assuring the funding company that it will repay the funding lien. Therefore, your attorney’s assistance will be needed, but not necessarily their approval.
Can my lawyer deny me from getting a pre settlement loan?
It’s always a good idea to consult with your legal counsel before proceeding with anything regarding your case. It’s important that you are fully aware of the terms and conditions of your potential funding arrangement, and your lawyer will help you to understand the ins and outs.
Even if you’re just at the consideration phase of seeking out a lawsuit loan, you’ll want to speak with your legal counsel before proceeding with anything regarding your case. In fact, it is not only highly recommended but required that you talk to your lawyer or case manager before moving forward.
They will be able to help you with the decision to take advantage of a lawsuit loan if you ask their advice, but they may try to discourage you instead. Consider, however, that most lawyers can’t appreciate the dire situation you may be in, and how taking even a small cash advance to pay bills may be a huge relief.
Ideally, you’ll want your lawyer’s full support, but you really only need their assistance. Your lawyer can absolutely refuse to sign the agreement and effectively deny you from getting the lawsuit money. However, if he or she refuses to cooperate, you can always find another lawyer that will be more receptive to helping you obtain a pre settlement loan. Ultimately, the choice is yours.
Legal-Bay settlement funding is an advocate for victims involved in litigation financing, and is committed to helping plaintiffs with their immediate cash advance needs. Any pre settlement funding received is risk-free since the lawsuit loans only need to be repaid if the plaintiff wins their case. If you lose your case, you owe the funding company nothing. It’s really a win-win for the consumer.
If you or a loved one have any further questions about pre-settlement funding, you can visit Legal-Bay’s website HERE or feel free to call their toll-free hotline at: 877.571.0405 to speak to a live agent.