Pre Settlement Funding

Can My Lawyer Deny Me From Getting a Pre-Settlement Loan?

Posted on by Fast Funds
Can My Lawyer Deny Me From Getting a Pre-Settlement Loan
28
May

If you’re awaiting a settlement from a personal injury claim, you might be considering a pre-settlement loan to ease financial burdens. But can your lawyer stand in the way of this option?

Understanding Pre-Settlement Loans and Legal Representation

To qualify for a pre-settlement loan, having legal representation is a must. This requirement ensures that your case is being handled properly and increases your chances of securing a settlement. The reason behind this necessity lies in the nature of pre-settlement funding, which operates on a non-recourse basis. In simple terms, repayment is contingent upon the outcome of your case. Consequently, lenders are unwilling to extend cash advances to plaintiffs without legal representation due to the associated risks.

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The Role of Your Attorney in Seeking Pre-Settlement Funding

Your attorney plays a crucial role in the pre-settlement loan process. They’ll be informed if you’re seeking such funding, enabling them to collaborate with the lending company to assess the strength of your case. While your lawyer cannot outright prevent you from pursuing a lawsuit loan, they may provide counsel regarding its suitability for your circumstances. Their advice, though not binding, should be taken seriously, as they have your best interests in mind.

Factors to Consider Before Opting for Pre-Settlement Funding

Before diving into pre-settlement funding, it’s essential to weigh its pros and cons. While it can offer relief by covering expenses during a financially challenging period, it may not be the ideal solution for everyone. Your attorney might advise against it if they believe it’s not in your best interest. Ultimately, the decision rests with you, but it’s crucial to consider your attorney’s guidance in making an informed choice.

The Importance of Legal Representation

Having a lawyer isn’t just a prerequisite for pre-settlement loans; it’s also vital for ensuring a fair settlement. While legal representation comes with associated costs, such as contingency fees, the benefits often outweigh the expenses. With competent legal counsel, you stand a better chance of securing a more substantial settlement, offsetting any fees incurred.

Exploring Alternatives and Understanding Your Rights

If you find yourself denied for a lawsuit loan, all hope is not lost. It’s crucial to understand the reasons behind the rejection and explore alternative options. Your case might strengthen over time, or you could encounter new opportunities for funding as your case progresses. Moreover, familiarizing yourself with your rights regarding pre-settlement funding is essential. Your attorney can provide invaluable insights into your legal options and help navigate any challenges you encounter along the way.

Frequently Asked Questions

What are the typical interest rates and fees associated with pre-settlement loans?

Pre-settlement loans often come with high-interest rates and fees due to the inherent risks involved for lenders. Interest rates can vary widely depending on factors such as the duration of the loan, the complexity of the case, and the likelihood of success. Additionally, lenders may charge origination fees or processing fees, which can further add to the overall cost of borrowing. It’s essential for plaintiffs to carefully review the terms and conditions of any loan offer to fully understand the financial implications before proceeding.

- WHAT CLIENTS ARE SAYING -

In June, my wife and I asked our attorney about giving us a loan against any settlement proceeds from our case. He told us that the state bar does not
permit lawyers to participate in the financing of clients. The offer of settlement was very low so the case needed to be filed in court. I called Fast Funds. Within 24 hours, I had entered into an agreement with them, selling a very small portion of the anticipated proceeds to them in exchange for immediate financing. Now my suit is in court and I don't have to worry about money until it's outcome. Thank god for Fast Funds
B.G.
As a result of the advances you have made to our client, we were able to refuse an extremely low settlement offer and take the case to court. We settled the day of the trial for a very generous sum. Had there been no advances by Fast Funds, our client would have had no choice but to accept the inadequate offer since he was in severe debt due to his inability to work. Thank you for your helpful assistance in providing our client with the ability to persevere.
C.F.
I was involved in an accident which took my left leg. I was forced to live homeless for eleven months. Thanks to the Fast Funds people advancing money. I now live in an apartment,I am walking on a prosthetic and otherwise getting my life back together, even though my attorney has not yet settled my lawsuit. I don't know what I would have done for money because the insurance company has offered nothing so far.
A.R.S.
I was involved in an auto accident which caused me to suffer a herniated disc. Because of this injury, I was forced to miss many months of work. I had no income and no place or person to turn to for money. My attorney told me he was unable to help with any financing and the insurance company was refusing to settle the case. I turned to a company called Fast funds. They immediately reviewed my file and took the financial pressure off by providing me with interim financing. I am now able to wait for as long as it takes for my lawyer to achieve a successful result in my case. Without the financial involvement of Fast Funds, I don't know what I would have done.
K.P.
I wanted to thank you for your sensitivity in helping me cope through a very difficult time in my life. Without your help, I would have been unable to pay my rent , forcing my wife and children to be put on the street. I have not been able to return to work and I was tempted to accept the insurance company's very low offer to settle, even though I knew it was not fair or reasonable. You have given me the ability to withstand the financial pressures. Thanks for your help. I will never forget it
C.S.
I have in the past referred clients to Fast Funds Inc., a non-recourse company. The experience of my clients
and my firm were totally positive. Fast Funds was responsive to the clients financial and emotional needs, provided the necessary emergency money and did not interfere in any manner with my handling of the cases. The clients, without my input, negotiated the advance directly with the company. In each case, they were completely satisfied with the final result of the case, including the amount of profit earned by Fast Funds. Non-recourse funding is clearly a valuable tool to the plaintiff's attorney.
M.J.L.
"I am writing to recommend the valuable assistance of the Fast Funds Inc., a company that provided interim funding to financially needy clients. They help to insure that a case will be brought to a successful resolution. A good case in point is when I was offered $75,000.00 for a seriously injured client. Had she not been able to take advantage of the advance financing offered by Fast Funds, I would have been forced to take the money. As it turned out, because my client now had the financial ability to withstand the pressures of time, I tried the case to a jury and received a verdict of $315,000.00.
M.S.D.
It is my belief that non-recourse companies, such as Fast Funds, the company to whom I refer my needy clients, perform an invaluable service to both the client and the attorney. Simply put, it is common knowledge that one of the tools negotiation utilized by insurance companies is time. Offering
considerably less money than the actual case value to a client in desperate need of funds while the case is pending, gives the insurance companies a tremendous advantage. This advantage is minimized and the playing field is leveled when the client has the ability to obtain funds for a minimal portion of the anticipated proceeds. Many times, with no prospects of income, an injured party will settle the case for whatever offer is made.
R.J.F.

Can pre-settlement funding impact the outcome of a legal case?

While pre-settlement funding itself does not directly influence the outcome of a legal case, it can affect the dynamics of settlement negotiations. Defendants may perceive plaintiffs with pre-settlement funding as being less financially vulnerable and thus be less inclined to offer a favorable settlement. Conversely, having access to funds through pre-settlement funding can empower plaintiffs to reject lowball settlement offers and pursue their case more vigorously. Ultimately, the impact of pre-settlement funding on the outcome of a case will depend on various factors, including the strength of the evidence and the negotiating strategies employed by both parties.

Are there any alternatives to traditional pre-settlement loans?

Yes, several alternatives to traditional pre-settlement loans exist, including lines of credit, personal loans, and borrowing from friends or family. Additionally, some plaintiffs may be eligible for financial assistance programs or charitable organizations that provide support to individuals awaiting legal settlements. Exploring these alternatives can help plaintiffs find a solution that best fits their needs and financial situation.

What are the potential drawbacks of pre-settlement funding?

While pre-settlement funding can provide much-needed financial relief, it’s essential to consider the potential drawbacks carefully. One major drawback is the high cost associated with these loans, including interest rates and fees, which can significantly reduce the final settlement amount. 

How long does it take to receive funds from a pre-settlement loan?

The time it takes to receive funds from a pre-settlement loan can vary depending on several factors, including the complexity of the case and the responsiveness of the lending company. In some cases, funds may be disbursed within a few days of approval, while in others, it may take several weeks or even months. Plaintiffs should inquire about the expected timeline for funding when applying for a pre-settlement loan to ensure they have realistic expectations regarding when they will receive the funds.

Can pre-settlement funding be used to cover non-medical expenses?

While pre-settlement funding is primarily intended to cover medical expenses and other costs related to the legal case, some lending companies may allow plaintiffs to use the funds for non-medical expenses as well. However, plaintiffs should be cautious when using pre-settlement funds for non-medical purposes, as doing so can further reduce the final settlement amount and may leave them without adequate funds to cover essential expenses related to the case.

What happens if a plaintiff loses their case after receiving a pre-settlement loan?

If a plaintiff loses their case after receiving a pre-settlement loan, they may still be responsible for repaying the loan, depending on the terms of the agreement. In most cases, pre-settlement loans are non-recourse, meaning that plaintiffs are only required to repay the loan if they win their case. However, plaintiffs should carefully review the terms and conditions of the loan agreement to understand their obligations in the event of an unfavorable outcome.

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Are there any restrictions on how pre-settlement funds can be used?

While pre-settlement funds are intended to cover expenses related to the legal case, there are generally no restrictions on how plaintiffs can use the funds once they have been disbursed. Plaintiffs are free to use the funds to cover medical bills, living expenses, or any other costs associated with their case. However, plaintiffs should keep careful records of how the funds are used to ensure they are being spent appropriately.

What information do plaintiffs need to provide when applying for a pre-settlement loan?

When applying for a pre-settlement loan, plaintiffs will typically need to provide information about their case, including details about the incident that led to the injury, medical records, and documentation of any expenses incurred as a result of the injury. Additionally, plaintiffs may need to provide information about their attorney and the law firm representing them. The lending company will use this information to assess the strength of the case and determine the likelihood of success.

Can plaintiffs apply for pre-settlement funding if they already have existing loans or debts?

In most cases, plaintiffs can still apply for pre-settlement funding even if they have existing loans or debts. However, plaintiffs should be aware that having multiple outstanding debts can impact their ability to qualify for a pre-settlement loan and may affect the terms and conditions of the loan offer. Additionally, plaintiffs should consider how taking on additional debt will affect their overall financial situation and ability to repay the loans in the future.

Relieving Your Financial Burden

At Fast Funds, we understand the challenges you face while awaiting a settlement for your personal injury claim. Our team is here to provide the financial support you need to navigate this difficult time with confidence.

If you’re considering pre-settlement funding, we encourage you to reach out to us today. Our experienced professionals will work closely with you and your attorney to assess your case and provide you with the funding you need as quickly as possible.

Don’t let financial worries hold you back from seeking the justice and compensation you deserve. Contact Fast Funds now to learn more about how we can help you get the financial assistance you need, when you need it most.