Pre-Settlement Funding Without My Attorney Consent

If your personal injury claim is dragging on and you are faced with mounting medical bills at the same time as losing income, you may be considering pre-settlement funding. If so, you might be wondering whether you can get a lawsuit loan even if your attorney doesn’t agree with this decision.

While you will need the cooperation of your lawyer, most law firms view plaintiffs applying for legal funding as a win-win situation. You get the cash you need to alleviate the financial stress you are under while your lawyer benefits from more time to strengthen your case and negotiate the strongest settlement.

Can I Get a Lawsuit Loan without My Attorney’s Consent?

You cannot obtain pre-settlement funding without legal representation. You also need the consent of your attorney. All legal funding companies require you to retain a lawyer under a contingency agreement to mitigate the risk.

Why You Need Legal Representation to Qualify for Pre-Settlement Funding

While pre-settlement funding is often referred to as a lawsuit loan, this is a type of non-recourse financing unlike a traditional loan. This means pre-settlement funding carries no risk to you. Neither employment status nor credit history are qualifying factors, and your assets will be protected if your case fails to settle and you do not repay the lawsuit loan.

If this happens, though, the lender loses all of the money they advanced you if your case does not settle. For this reason, funding companies require you to retain an attorney on a contingency basis to mitigate this risk.

Assuming you feel that pre-settlement funding makes the right solution for you, and provided your attorney supports your decision, you can approach some suitable legal funding companies. You could receive a portion of your settlement now under a non-recourse loan contract between you, your legal counsel, and the third-party funding firm.

The initial part of the settlement funding process involves the funding company communicating with your lawyer regarding your case information. If you have an attorney handling your lawsuit, this shows the lender that you have a strong case.

If your application for pre-settlement funding is accepted, the lending company puts a lien on your case. This secures payment from your final settlement payment. This is why the lending company requires your lawyer’s signature on the loan agreement. The lender then secures payment when the proceeds of your settlement are credited to the escrow account at your attorney’s law firm. The lender is paid before you receive the remainder of your settlement, minus other costs.

If you have legal representation, remember that your lawyer cannot give you an advance on your expected settlement. Lawyers are legally barred from providing financial assistance to clients.

Fortunately, your attorney can help you to obtain pre-settlement funding, so how do you go about that?

How Do You Qualify for Pre-Settlement Funding?

The primary criteria when qualifying for pre-settlement funding is that you have an attorney who consents to the lawsuit loan. Even if you were thinking of representing yourself and dealing with the insurance company alone, this is not possible if you also want a lawsuit loan against your expected settlement. You need to hire an attorney.

Beyond this, the lending company assesses the strength of your case and the value of your anticipated settlement.

To kick-start the process, apply online or on the phone with your preferred funding company. All you will need to provide is the basic facts of your case and the contact details of your attorney.

The amount you can borrow will be a percentage of your expected settlement value, typically between 10% and 20% of this amount. The more your case is worth, the more you could borrow on the strength of it.

Next, the funding company evaluates your case after liaising with your lawyer. If you have a strong case and your application is accepted, the funding company will send a funding contract. When you and your attorney have both signed this agreement, return it to the funding company. You should receive funds within a day or two.

If you win your case, you repay the principal plus interest and an origination fee. If you lose your case, you repay nothing.

What Information Does Your Attorney Need to Provide for Your Legal Funding Application?

You must give your attorney permission to provide the settlement funding company with the specifics of your case. Unless you give this permission, your legal counsel would be bound by attorney-client privilege to divulge no details of your case.

Most funding company will request the following information from your attorney:

  • When, where, and how the accident happened
  • Nature of the defendant (individual, corporate entity, government agency)
  • The severity of your injuries
  • If you have incurred a permanent disability
  • Whether you will fully recover
  • Any applicable property damage
  • Current and future medical expenses
  • Total lost income, current and future
  • Any relevant punitive damages
  • Earning status within the family

Get Pre-Settlement Funding Today with Uplift Legal Funding

If you have legal representation and if your attorney consents to your decision to pursue legal funding, we can help you here at Uplift Legal Funding.

Unlike most lending companies, we charge simple non-compounding interest, keeping costs down for you.

Get money on the strength of your settlement in as little as 24 hours by applying online or on the phone today.

Managing Member at Uplift Legal Funding
Jared Stern is an experienced financial professional with six years of experience in the pre-settlement funding industry. After graduating from UC Berkeley with a degree in economics in 2014, Jared began his career in Morgan Stanley's mergers and acquisitions investment banking division. After working with another pre-settlement funding company for two years, Jared founded Uplift Legal Funding in 2017 to give injured plaintiffs a better choice in lawsuit loans. Check Jared out on: LinkedIn | Legal Reader | Attorney At Law Magazine
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