Can I Get Pre-Settlement Funding Without My Attorney’s Consent?

by Toni Hipolito

Your attorney plays a pivotal role in obtaining pre-settlement funding and guiding you throughout the process. But you may be asking yourself, can I get Pre-Settlement funding without my attorneys consent? In order to dive into this, we need to look at exactly what your attorney does throughout the process.

What Does My Attorney Do?

Here’s how your attorney plays a crucial roll throughout the process:

• Providing Case Information: The lender needs detailed information about your claim to assess eligibility. Your attorney provides these details, helping the lender understand the potential settlement value.
• Ensuring Legal and Ethical Compliance: Attorneys must agree to the funding and sign the legal funding agreement or issue a Letter of Protection (LOP). This ensures the transaction is legal and ethical, protecting your interests.
• Repayment Responsibility: If your case settles successfully, the settlement funds are deposited into your attorney’s escrow account. Your attorney then repays the lawsuit loan from this amount before distributing the remaining balance to you.

Why Your Attorney Might Object to Pre-Settlement Funding

There are instances where an attorney might oppose a pre-settlement loan. Common reasons include:

• State Regulations: Some states do not permit lawsuit loans.
• Multiple Advances: You may have already taken out the maximum number of advances allowed.
• Case Progression: Your lawsuit might be too early in the proceedings to qualify.
• Attorney Policies: Some attorneys may have policies against working with pre-settlement lending companies.
• Non-Urgent Needs: If the loan is not for urgent necessities like housing or food, an attorney might advise against it.

The Importance of Consent

While the decision to accept a lawsuit loan ultimately rests with you, your attorney’s consent is crucial. The ethics guidelines, such as Rule 1.2 of the ABA, state that lawyers must respect and support their client’s decisions regarding representation objectives. This includes seeking a pre-settlement loan to cover living expenses.

Clearing Up Misconceptions

There is a misconception that lenders might ask for additional collateral, such as a house or car, if you don’t involve your attorney. This is not true. Lawsuit loans are non-recourse and secured only by your future settlement. If you lose your case, you owe nothing to the lender.

Conclusion

So, can I get Pre-Settlement funding without my attorneys consent? We know dealing with the financial aftermath of a car accident can be challenging. However, obtaining Pre-Settlement funding without your attorney’s consent is not possible. Your attorney’s involvement ensures that the process is legal, ethical, and in your best interest. At Trauma Cash, we work closely with our clients to provide the support and guidance needed throughout the pre-settlement funding process, ensuring you get the financial relief you need while pursuing justice. If you have any questions or need assistance, don’t hesitate to contact us!