At Fund Capital America, we can offer a pre-settlement cash advance to cover your expenses while your personal injury settlement is pending. We understand you may be unable to work and are struggling financially. Pre-settlement funding helps you carry forward, but what is your attorney’s role in this? Can you obtain pre-settlement funding without your attorney’s consent?
The answer is: Your lawyer can’t stop you from applying for lawsuit funding. But they must be a part of the process for you to receive a non-recourse cash advance. You won’t receive pre-settlement funding unless your attorney consents to share the details of your case.
How Obtaining Pre-Settlement Funding Works
The amount approved by the lender is based on the estimated value of your claim. It’s also solely backed by the proceeds of your future settlement; if your case doesn’t win, the advance won’t have to be paid back. To determine what your case is potentially worth, the funding company will contact your attorney after you apply.
In making a decision, both on approval and the amount offered, they need to know:
- What your case is worth.
- How strong the plaintiff’s arguments are.
- The chances of winning the lawsuit.
There are a lot of variables to consider. The plaintiff won’t be paying back the lender directly. Winning a personal injury claim requires building a strong case, and even if the claim results in a settlement or wins in court, the amount awarded may be different from that requested. The legal funding company risks not being paid back or not receiving as much as they provided, so they need as much information as possible from your attorney.
The Funding Company Works with Your Lawyer
This is a close working relationship. The company must know your personal injury claim has merit. They must also know how much is being requested and where the claim stands in being resolved. Negotiations can alter the amount awarded; if the plaintiff is looking for a quicker payout, this payment may be lower than expected.
While you can receive a lawsuit cash advance quickly from the funding company, it is your lawyer who will pay them back. Settlement funds go to your attorney when the claim is awarded. Before any funds are forwarded to you, the attorney puts the money in an escrow account. The pre-settlement funding company is one lender that may have a lien against your lawsuit, so your lawyer will make sure they get paid. Once your lawyer takes out their fees, you’ll receive the remainder as a check or bank account deposit.
What If My Attorney Won’t Consent to Pre-Settlement Funding?
The funding company must get your attorney’s signature before they can issue any cash. Nonetheless, your attorney isn’t required to approve. You should therefore discuss your options with them before applying for pre-settlement funding. Explain your financial situation and challenges with covering living expenses at this time.
An attorney may not approve of pre-settlement funding because:
- They do not work with lawsuit funding companies.
- It may be too early to fund the claim.
- You may have already received legal funding.
The best way to avoid any conflicts of interest, or denial of legal funding, is to first speak to your attorney. If pre-settlement funding is your best option, they may know reputable lenders you can apply with.
Not every pre-settlement funding application is approved the first time. If you’ve been turned down, speak with your attorney. It may be possible to apply again later in the case when there’s a clearer timeline, the expected settlement amount is known, and there’s a shorter repayment period. Therefore, you may have a better chance of approval and incur fewer fees.
Therefore, your attorney should be fully involved in the process if you intend to use pre-settlement funding to cover your expenses.
Apply for Legal Funding with Fund Capital America
We offer pre-settlement funding that benefits both clients and their attorneys. A cash advance can cover living expenses and allow a case to continue toward a larger settlement. Our application process takes just a few minutes; once we receive your information, we’ll speak to your attorney and make an offer within 24 hours. There are no hidden fees or out-of-pocket costs. To get started, learn about the cases we fund and apply directly online. For more information, call 855-870-2274.