Before you can get approved for pre-settlement funding, one of the most important requirements is having a lawyer on your side. Legal funding companies won’t move forward with your application unless you’re represented by an attorney who can verify your case details and ensure everything is handled ethically.
Here’s why having legal representation is essential for getting legal funding.
Why You Need a Lawyer to Get Legal Funding
Legal funding, also called pre-settlement funding or a lawsuit cash advance, is not a loan. It’s a non-recourse financial agreement: you only repay if you win or settle your case.
Because of this structure, legal funding companies must evaluate your case’s strength, and that’s only possible with help from your attorney of record.
Legal Funding Requires a Contingency-Fee Attorney
To be eligible for legal funding:
- Your lawyer must work on a contingency fee basis (no win, no fee).
- The attorney must be actively involved in your lawsuit.
- They must agree to cooperate with the funding provider and verify case documentation.
This legal relationship ensures the funding company can accurately assess the risk and your likelihood of winning the case.
Legal Funding Is Not a Traditional Loan
Legal funding is non-recourse, meaning repayment is only required if your case is successful. This differs from traditional loans and aligns with the contingency fee structure, where attorneys are paid based on the outcome of your case. This is why legal funding is often called a pre-settlement cash advance.
What Your Attorney Does During the Legal Funding Process
Your lawyer is essential at every step of securing legal funding:
1. Confirms Legal Representation
Verifies that you’re actively pursuing a valid claim with their help.
2. Shares Supporting Case Materials
Attorneys play a vital role in submitting necessary documents and communicating with legal funders. This includes sending police reports, medical records, demand letters, and other documents needed to assess your case.
3. Reviews and Approves the Funding Agreement
Your attorney evaluates the funding terms to ensure they’re fair, ethical, and in your best interest.
Can I Get Legal Funding Without a Lawyer?
No. Reputable legal funding companies do not work with unrepresented plaintiffs (also known as pro se litigants). Here’s why:
- Legal Barriers: Many states require attorney involvement for consumer legal funding.
- Risk of Misunderstanding: Without legal guidance, clients may not understand the terms or risks of getting legal funding.
- Underwriting Limitations: Funders can’t properly evaluate a case without legal insight.
Applying without an attorney poses risks, such as misunderstanding terms and lacking proper case evaluation.
Exception: Some limited non-litigation claims, such as certain probate or inheritance funding, may not require an attorney, but these are rare.
What If My Attorney Doesn’t Approve of Legal Funding?
Ultimately, attorney participation is voluntary. If your lawyer refuses to cooperate, you will not be able to receive funding from Express Legal Funding or any reputable provider, but it’s important to understand why they’re concerned and what your options are. Legal funding companies rely on attorney cooperation to move forward, so their disapproval can delay or prevent approval.
Relevant guide: Can My Lawyer Stop Me From Getting Pre-settlement Funding?
Common Reasons an Attorney May Say No to Legal Funding or Lawsuit Loans
Your lawyer might reject a funding request due to:
- Ethical concerns: They may worry about high interest rates or repayment terms that could harm your financial recovery.
- Firm policies: Some law firms avoid third-party funding arrangements altogether to avoid conflicts of interest or administrative burdens.
- Impact on settlement strategy: Attorneys may believe funding could discourage you from accepting a fair settlement offer or complicate lien negotiations.
What You Can Do Next
If your attorney declines to cooperate with a legal funding request, here are steps you can take:
- Start a conversation: Ask your attorney to explain their specific concerns and whether they’d support funding with revised terms.
- Negotiate better terms: Reach out to the funding company to see if they’ll adjust the offer to satisfy your attorney’s standards.
- Explore alternatives: Consider other forms of financial help, such as personal loans, hardship grants, or connecting with a different law firm if appropriate.
Pro Tip: Legal funding is most successful when your attorney is fully on board. If you’re working with Express Legal Funding, we’re happy to collaborate directly with your lawyer to answer their questions, address concerns, and provide transparent terms that meet ethical standards.
How to Apply for Legal Funding With an Attorney
- Hire a Contingency-Fee Attorney: Choose a lawyer who agrees to work on your case and supports legal funding.
- Apply with Express Legal Funding: Complete the online application form or call our team directly.
- Attorney Case Review: We contact your attorney to request case documentation and confirmation of representation.
- Approval and Agreement: If approved, both you and your attorney will receive and sign your portions of the funding contract.
- Receive Funds: Get your lawsuit cash advance, often within 24 hours of approval.
Can I Apply for Legal Funding Before Hiring a Lawyer?
Yes, you can begin the legal funding inquiry process before hiring a lawyer, but you won’t be approved until you retain legal counsel. Most legal funding companies, including Express Legal Funding, require your attorney’s active involvement to evaluate your case and move forward with approval.
Summary Table: Why You Need an Attorney for Legal Funding
| Reason | Why It Matters |
|---|---|
| Case Evaluation | Legal funding companies rely on lawyers to submit documentation and assess risk. |
| Risk Management | Attorneys help protect clients from abusive or confusing contract terms. |
| Legal Compliance | Ensures contracts follow state laws and professional ethical guidelines. |
| Settlement Oversight | Lawyers manage lien repayment from the settlement and disburse funds properly. |
FAQs About Needing a Lawyer to Get Legal Funding
Do pre-settlement funding companies require my lawyer to sign anything?
Yes. Reputable pre-settlement funding companies typically require your attorney to sign a confirmation of representation and lien agreement known as an “Attorney Acknowledgment”. This signed document verifies that your lawyer is actively handling your case and agrees to cooperate by sharing case information and ensuring repayment from the future settlement proceeds.
Without this signed cooperation, your funding application cannot be approved.
Relevant guide: Can I Get Pre-Settlement Funding Without Attorney Consent?
Can I switch attorneys to one who supports legal funding?
Yes, but it’s a decision that should be made cautiously. While switching to an attorney who supports legal funding is possible, it’s generally best to maintain continuity with your current lawyer whenever possible. Changing representation can delay your case and may not always be in your best interest.
We recommend first discussing your concerns openly with your attorney to explore potential solutions before considering a switch.
What if I already applied and didn’t have a lawyer?
Your application cannot be approved without legal representation. Legal funding companies require an attorney to verify your case details and participate in the approval process. If you applied without a lawyer, you’ll need to hire one before your application can proceed.
Once you have legal representation, you can reapply. If you need help finding an attorney, many legal funding companies, like Express Legal Funding, can offer referrals to qualified lawyers in your area.
Have More Questions About Legal Funding and Attorney Involvement?
If you’re wondering whether your case qualifies for funding or need help finding an attorney:
- 📞 Call Express Legal Funding Toll-Free at (888) 232-9223
- 📝 Apply Online for Legal Funding
