If you’re currently involved in a legal dispute and finding it challenging to manage your finances, you may find yourself contemplating pre-settlement funding to alleviate financial strain. However, an important question to consider is what happens if your attorney opposes this decision.
Seeking pre-settlement funding during a lawsuit can be a complex and sensitive matter. Many individuals facing financial pressure due to legal battles may not be aware of their rights and options in this scenario. The possibility of your attorney objecting to your pursuit of pre-settlement funding can further complicate an already challenging situation, prompting the need for precise and reliable information on this subject.
Understanding the implications of your lawyer’s objection to pre-settlement funding is crucial for those navigating the legal and financial challenges of a lawsuit. With potential impacts on your financial stability and the progress of your case, it’s essential to explore the factors and considerations surrounding your attorney’s ability to deny your access to pre-settlement funding.
Your Lawyer’s Role in Pre-Settlement Funding
It’s crucial to understand that in order to qualify for pre-settlement funding, you must have an attorney representing you. Why is this? Having legal representation dramatically increases your chances of winning a settlement. Lenders require plaintiffs to have an attorney because their repayment is contingent on the outcome of the case, and they cannot risk funding a case without proper legal representation.
When you apply for pre-settlement funding, lenders will need to evaluate the strength of your case. To do this, they’ll need to communicate with your lawyer or paralegal to gather information about your lawsuit. While your attorney may advise against funding if they believe it’s not in your best interest, ultimately, the decision to seek legal funding is yours to make.
Why Your Lawyer Might Object to Legal Funding
When you’re in a legal battle, legal funding can seem like a lifeline, providing financial relief for living expenses and legal costs. However, your lawyer may have reservations about pursuing this option. Here are some possible reasons:
Misunderstanding How Pre-Settlement Funding Works
One common reason lawyers object to legal funding is a misunderstanding of how the process works. They may believe that lenders will try to dictate the terms of the case, but this is not true. In fact, it would be against the law for a lender to do so. Funding agreements clearly stipulate that lenders will not be involved in the case at all.
Attorneys may also worry that pre-settlement funding will hinder their ability to settle the case. However, in our experience, the opposite is often true. Funding can provide plaintiffs with the financial support they need to hold out for a fair settlement rather than accepting a low offer out of desperation.
High Interest Rates and Protecting the Client
Another concern attorneys may have is the high interest rates associated with pre-settlement funding. They may feel that they are protecting their client by advising against it. However, it’s important to understand that these are non-recourse advances, not loans. If you lose your case, you are not required to repay the lender. The high rates are due to the risk lenders take on by funding cases that may not result in a settlement.
Your Right to Seek Pre-Settlement Funding
Navigating a lawsuit can be both time-consuming and financially draining. As you await a settlement, covering daily expenses and legal fees can become increasingly challenging. This is where pre-settlement funding comes into play, offering a financial lifeline when you need it most.
The Lawsuit is Your Asset
Your lawsuit is your asset. You have the right to choose what to do with it, including selling a portion to a funding company if you need money now. While your lawyer’s advice is valuable, the ultimate decision lies with you.
Educating Your Lawyer on Your Financial Needs
If your lawyer is resistant to the idea of pre-settlement funding, it’s important to have an open and honest conversation with them about your financial situation. Explain how funding can help you avoid settling for less than your case is worth due to pressing financial needs. In most cases, once attorneys understand the full picture, they’re more willing to support their client’s decision to seek funding.
Addressing Your Lawyer’s Concerns
Addressing your lawyer’s concerns openly and effectively is crucial for maintaining a strong, collaborative relationship. Common concerns lawyers may have include why these issues arise and how you can address them constructively to ensure your case progresses smoothly.
Understanding Legal Funding Restrictions
One critical aspect to consider is the various legal and ethical restrictions that lawyers must navigate when dealing with legal funding. For instance, the Legal Services Corporation (LSC), a major source of funding for legal aid in the United States, imposes stringent restrictions on how its funds can be used. These restrictions include prohibitions on abortion litigation, class actions, and criminal cases, among others. Lawyers representing clients under LSC funding must adhere to these restrictions, which might limit their ability to secure funding for certain cases.
Additionally, Interest on Lawyers’ Trust Accounts (IOLTA) programs are relevant in understanding legal funding restrictions because they showcase how the legal system can leverage financial mechanisms to support access to justice for those who cannot afford legal services. IOLTA programs emphasize a broader commitment to the legal system to ensure that individuals with limited financial means have access to legal services.
Clarify the Lender’s Role
To ease your lawyer’s concerns about a lender’s involvement in your case, make it clear that the funding company will not participate in any decision-making in the lawsuit. This includes settlement negotiations, timing of the settlement, approval of the settlement, and any pre-trial or trial strategies. These matters are your and your attorney’s sole responsibility.
Acknowledge the High Cost of Funding
It’s true that pre-settlement funding is expensive compared to traditional loans. However, this is due to the risk lenders take on. Between 5% and 6% of funded cases are lost, meaning the lender loses every penny they advance. For plaintiffs with pressing financial needs, the cost of funding may be worth it to avoid settling for less or facing financial ruin.
Next Steps and Takeaways
If you’re considering pre-settlement funding, the first step is to educate your lawyer on how the process works and why it’s necessary for your specific situation. Encourage open communication between your attorney and the funding company to address any concerns they may have.
Remember, while your lawyer’s advice is important, the decision to seek legal funding is ultimately yours to make. If you’re denied funding, ask why and work with your attorney to strengthen your case before reapplying.
At Mayfair Legal Funding, we pride ourselves on our high approval rates and expertise in the pre-settlement funding industry. Our loan representatives are here to help guide you through the process and answer any questions you may have.
Get the Legal Funding You Need with Mayfair
At Mayfair Legal Funding, we understand the financial strain a lawsuit can put on plaintiffs and their families. That’s why we offer non-recourse pre-settlement funding to help you make ends meet while you await a fair settlement. Our application process is quick and easy, and our loan representatives are here to guide you every step of the way.
Don’t let financial pressure force you to settle for less than you deserve. Call Mayfair Legal Funding today at (888) 357-1338 to learn more about how we can help you get the funding you need to fight for the justice you deserve!
