What happens if my attorney doesn’t approve of me receiving pre-settlement funding?
Pre-settlement funding is a relatively new concept, but it’s becoming more popular as an alternative to traditional financing and loan products. This type of funding is a cash advance to cover the costs associated with a lawsuit, including attorney fees, medical bills, and other expenses. It is a way of getting money quickly and easily in exchange for a percentage of the future settlement or verdict. While pre-settlement funding can be incredibly helpful in times of need, attorneys often have varying opinions when it comes to their clients receiving this type of assistance.
If your attorney does not approve of pre-settlement funding, it is important to understand why. It is likely that he or she is looking out for your best interests, as this type of funding is not without its risks. There is a chance that the funding company may be performing a “loan to own” type of transaction, making the settlement less favorable to the client. Additionally, some unethical companies may try to take advantage of vulnerable individuals, so it is important to make sure you are dealing with a reputable company before agreeing to a pre-settlement funding agreement.
Attorney disapproval of pre-settlement funding can also be due to the fact that there may be a conflict of interest in the agreement. One common example is that the attorney does not want to be in a position to have to represent a borrower if the funding company tries to take a greater portion of the settlement or verdict than was agreed upon. This could result in the attorney having to represent their own client in an action against the funding company, which could create a difficult situation for the attorney.
Additionally, some attorneys do not view pre-settlement funding as a viable option for their clients because the cost of these advances may outweigh the potential benefit. This is especially true if the lawsuit is likely to settle quickly, as the costs associated with pre-settlement funding may not be offset by the eventual settlement. Therefore, attorneys may prefer other sources of financing such as bank loans or traditional lines of credit.
The bottom line is that it is important to discuss your options with your attorney if they express any concerns about pre-settlement funding. Often, it is just a matter of making sure you understand the risks and potential benefits and making sure you choose a reputable company that offers fair terms. Your attorney can help you evaluate your options and make a more informed decision, so it is important to keep the lines of communication open.
In the end, it is important to remember that your attorney’s opinion about pre-settlement funding should not be seen as a “no” or as a lack of faith in your case. Attorneys are merely acting in your best interests to ensure that you receive the best settlement or verdict possible. Ultimately, the decision of whether to pursue pre-settlement funding should be yours and yours alone.