Pre-settlement funding is a cash advance provided to plaintiffs represented by attorneys who are awaiting the resolution of their legal cases. This financial assistance helps cover essential living expenses during the often lengthy legal process.
A common question arises when an attorney refuses to facilitate their client’s request for pre-settlement, also known as a lawsuit loan:
Can a Lawyer Stop You from Getting Pre-Settlement Funding?
The simple answer is no. A lawyer cannot legally stop you from applying for or obtaining pre-settlement funding for your case without justification. However, their cooperation is often required in the approval process.
Understanding a lawyer’s role in getting lawsuit loans is crucial for plaintiffs to make informed financial decisions while waiting on a lawsuit settlement.
Understanding Pre-Settlement Funding
Pre-settlement funding is a non-recourse advance, meaning plaintiffs only repay it if they win their case. It is commonly used in scenarios such as covering medical bills, rent, daily living expenses, and loss of income due to injury.
While it provides financial relief during a pending case, it can also reduce the final settlement amount due to funding fees.
The Lawyer’s Role in Pre-Settlement Funding: Why Their Cooperation Matters
Lawyer cooperation is crucial in the pre-settlement funding process because legal funding companies require attorneys to provide case details before approving funding.
Since pre-settlement funding is non-recourse (meaning repayment is only required if the case is successful), funding companies evaluate the strength of a case before issuing an advance. To do so, they rely on attorneys to verify case details, including liability, damages, and expected settlement value.
Why Lawyers Must Be Involved in Legal Funding Approval
Although not legally required in most states, lawyer participation is often necessary for funding approval because:
- Case Documentation: Legal funding companies request case details, medical records, and insurance information from attorneys to assess risk.
- Funding Agreement Review: In some states attorneys are required to review and explain funding agreements to ensure clients understand repayment obligations.
- Settlement Fund Disbursement: Lawyers facilitate repayment by deducting the funding amount from the client’s final settlement before distributing funds.
The Lawyer’s Role in Repayment of Pre-Settlement Funding
Once a client’s case settles, the attorney is responsible for handling the distribution of settlement funds, including:
- Receiving the Settlement Check: Insurance companies and defendants send settlement payments directly to the attorney’s trust account.
- Deductions & Repayment: Attorneys deduct legal fees, medical liens, and legal funding repayment before issuing the client’s final payout.
- Ensuring Compliance with Funding Agreements: Lawyers must honor funding agreements by repaying the pre-settlement advance before distributing funds to the client.
Because of this, many legal funding companies require written acknowledgment from attorneys before approving a client’s funding request. This ensures that lawyers understand the repayment process and agree to facilitate payment once the case concludes.
Why Some Lawyers Are Hesitant About Legal Funding
Even though pre-settlement funding can provide essential financial relief to plaintiffs, some attorneys have concerns about its impact on a client’s settlement. Common lawyer concerns include:
- Ethical Duty to Protect Clients: Attorneys must act in a client’s best financial interests, ensuring they do not accept unfavorable funding terms that could reduce their final payout.
- Financial Strain on Settlements: Since funding advances must be repaid from the settlement, attorneys worry that high funding costs could significantly reduce the client’s final compensation.
- Firm Policies & Administrative Burden: Some law firms have policies against working with funding companies due to past negative experiences or concerns about administrative workload in managing funding payoffs.
- Conflicts of Interest: Attorneys may be hesitant to work with funding providers if they believe third-party financing could interfere with case strategy or influence settlement negotiations.
Can a Lawyer Legally Stop Clients From Getting Pre-Settlement Funding?
Legally, lawyers cannot block clients from seeking pre-settlement funding. However, they can refuse to cooperate. Some law firms have strict policies against working with funding companies. If a lawyer refuses to share case details, funding companies may decline the request.
Why Would a Lawyer Oppose Pre-Settlement Funding?
Lawyers may have concerns about the high costs associated with some funding companies, which can reduce a client’s final payout. There may also be case strategy conflicts, as lawyers might prefer waiting for a higher settlement rather than taking early advances.
Some law firms opt not to work with funding companies due to past negative experiences, while others may avoid legal funding providers over concerns about potential conflicts of interest.
How to Talk to Your Lawyer About a Lawsuit Loan
When discussing pre-settlement funding with your lawyer, be direct and transparent about your financial situation and why you need funding. Ask your lawyer if they are willing to assist with your funding request, what their concerns are, and if they have experience working with funding companies.
If your lawyer refuses, request a detailed explanation for their refusal.
Consider seeking funding companies that require minimal attorney involvement, and in extreme cases, consider switching lawyers if they are unreasonably obstructing access to funding.
Alternatives to Pre-Settlement Funding
Consider using personal savings if you have a financial cushion, borrowing from family or friends, or exploring bank loans or credit cards, though these can be risky due to repayment obligations. Disability or workers’ compensation benefits may also be a better option if applicable.
Comparison of Pre-Settlement Funding and Alternative Financial Options
| Funding Option | Pros | Cons |
|---|---|---|
| Personal Savings | No interest or fees | Not available for most plaintiffs |
| 401(k) Loans | Low-interest option if employer offers it | Risk of penalties if unpaid |
| Borrowing from Family/Friends | Interest-free | Can create personal conflicts |
| Bank Loans/Credit Cards | Immediate funds | Requires good credit & repayment |
| Disability or Workers' Compensation | No repayment needed | Only available in certain cases |
| Pre-Settlement Funding | No repayment if you lose | Funding fees reduce final settlement |
Express Legal Funding’s Approach: Fast, Transparent, and Risk-Free
At Express Legal Funding, we understand that waiting for a lawsuit settlement can be financially stressful. That’s why we offer a fast, low-cost, and transparent pre-settlement funding solution designed to help you cover essential expenses while your case progresses.
Why Choose Express Legal Funding?
- Fast Approvals: Get access to funds in as little as 24 hours after approval.
- 100% Risk-Free: If you lose your case, you owe us nothing—no repayment required.
- No Hidden Fees: We provide straightforward, transparent terms with no surprises.
- Attorney-Friendly Process: We work directly with your lawyer, ensuring minimal paperwork and hassle for both you and your legal team.
- More Money in Your Pocket: Our low-cost funding rates allow you to keep more of your final settlement.
We believe that fair funding empowers plaintiffs, giving them the financial stability to pursue justice without being forced into an early, low-ball settlement.
💰 Take Control of Your Financial Future Today!
Don’t let financial stress force you into an unfair settlement. Apply with Express Legal Funding today for a fast, risk-free pre-settlement advance and get the support you need.
Conclusion & You Can Apply With Express Legal Funding Today
Key takeaways include that lawyers cannot legally stop you from getting funding, though some may refuse to cooperate, making funding harder to obtain. If your lawyer objects, communicate openly and explore other options. If you need funding now, contact Express Legal Funding for a risk-free consultation. ⬇️
Have questions about your attorney’s stance on pre-settlement funding? Start the conversation with them today to explore your legal funding options.
FAQ: Can Lawyers Prevent Clients from Getting Pre-Settlement Funding?
Can My Lawyer Refuse to Provide Information to a Pre-Settlement Funding Company?
Yes, your lawyer can refuse to cooperate with a funding company, but they cannot legally stop you from seeking pre-settlement funding. Most funding companies require basic case details from your attorney, so if they refuse to provide them, the funding request may be denied.
What Can I Do If My Lawyer Won’t Help With Pre-Settlement Funding?
If your lawyer refuses to cooperate, consider these options:
- Discuss their concerns and ask why they are opposed.
- Seek a funding company that requires minimal attorney involvement.
- Consider changing attorneys if their refusal is unreasonable and harms your financial well-being.
Why Do Some Lawyers Oppose Pre-Settlement Funding?
Lawyers may advise against pre-settlement funding for several reasons:
- High costs: Some funding companies charge steep fees, reducing your final settlement.
- Settlement strategy conflicts: Your lawyer may want to wait for a higher settlement rather than accept early funding.
- Firm policies: Some law firms have internal rules against working with funding companies.
- Conflicts of interest: A lawyer may have preferred funders or agreements with other financial providers.
Do I Need My Lawyer’s Permission to Get Pre-Settlement Funding?
No, you do not need a lawyer’s permission to apply for pre-settlement funding. However, most legal funding funding companies require some level of attorney cooperation, such as verifying case details, which can impact approval.
What Are the Best Alternatives to Pre-Settlement Funding?
If pre-settlement funding isn’t an option, consider:
- Personal savings (if available).
- 401K loans (if offered by employer)
- Borrowing from family/friends (interest-free, but could strain relationships).
- Bank loans or credit cards (require credit checks and repayment).
- Disability or workers’ compensation benefits (for eligible plaintiffs).
🔀 Read our guide: 15 Alternatives to Lawsuit Loans: Pros, Cons, & How to Apply
Is Pre-Settlement Funding Considered a Loan?
No, pre-settlement funding is not a loan. It is a non-recourse cash advance, meaning you only repay it if you win or settle your case. If you lose, you owe nothing.
How Fast Can I Get Pre-Settlement Funding?
With Express Legal Funding, you can receive funding in as little as 24 hours after approval. The speed of approval depends on how quickly your lawyer provides case details.
