Changing lawyers after receiving pre-settlement funding can raise questions about your agreement, repayment amount, and ability to request more money. Whether you are switching because of communication problems, a change in case strategy, or your attorney’s retirement, it helps to understand what needs to happen next.
Quick Answer: Does it Affect My Pre-Settlement Funding if I Change Lawyers?
Changing lawyers generally does not cancel your existing pre-settlement funding agreement. The agreement usually provides for repayment from money recovered through your claim, and switching attorneys does not automatically eliminate those contractual obligations.
What may change is how the legal funding company communicates with your legal team, which documents your new attorney needs to review, and whether another funding request can move forward. The specific requirements depend on your contract and applicable state law.
What Changes—and What Usually Stays the Same?
| Item | What to expect when you change lawyers |
|---|---|
| Existing funding agreement | Generally remains in effect, subject to its terms and applicable law. |
| Contractual pricing terms | A lawyer change alone generally does not rewrite the existing terms. |
| Payoff amount—the amount needed to satisfy the funding obligation on a particular date | May continue to increase over time under the agreement, subject to any applicable caps. |
| Attorney contact information | Needs to be updated with the funding company. |
| Attorney acknowledgment | The new lawyer may be asked to review and sign an acknowledgment. |
| Non-recourse provisions, if included in your agreement | Generally, tie repayment to a recovery in your case. Changing lawyers alone does not ordinarily remove this protection; review the agreement’s conditions and any exceptions. |
| Additional funding | Requires a separate review and cooperation from the new attorney. |
What Should You Do When Changing Attorneys?
Taking these steps can help your new lawyer understand the existing funding and reduce avoidable communication problems:
- Tell your new attorney about all outstanding funding. Provide copies of each agreement, any amendments, and recent payoff statements.
- Notify your funding company promptly. Explain that you are changing lawyers and provide the new firm’s contact information once representation is confirmed. Check your agreement for any notice requirements.
- Ask about the transition paperwork. The company may need confirmation of representation, updated contact details, or an acknowledgment from the new attorney.
- Request a current payoff statement. Ask how long the quoted amount remains valid and whether additional charges may accrue during the transition.
- Discuss case deadlines and file transfer with your lawyers. Ask who is responsible for upcoming deadlines and what is needed to complete the change in representation.
Do not assume your former attorney has notified the funding company. Contacting the company yourself helps ensure it knows whom to reach.
Will My Pre-Settlement Funding Costs Keep Increasing While I Change Lawyers?
They may. Changing attorneys does not automatically pause charges under your funding agreement.
The amount owed at repayment can depend on how long the funding remains outstanding, the agreement’s pricing structure, and any contractual or legal limits. If the transition contributes to a longer case timeline, that additional time may affect your payoff amount.
Your contract’s repayment schedule can help you understand how the amount may change. Ask for an updated statement rather than relying on a payoff figure from an earlier date.
Ask the funding company:
- What is my current payoff amount?
- When could that amount increase next?
- Is there a maximum repayment amount or a limit on how long charges accrue?
What Does My New Attorney Need to Acknowledge?
The funding company may ask your new lawyer to acknowledge the existing agreement and review instructions concerning repayment from case proceeds.
This can involve more than updating a contact record. Depending on the document and applicable law, the acknowledgment may address handling settlement proceeds, obtaining payoff information, or following the client’s payment instructions.
For example, Maine’s statutory acknowledgment includes provisions concerning disbursement through the attorney’s trust account and the consumer’s funding instructions. Maine attorney acknowledgment requirements
Your new attorney should review the actual documents and understand any responsibilities before signing.
What if my new lawyer refuses to sign?
Tell the funding company and ask your lawyer to explain the concern. The attorney may need additional information or may object to particular language in the proposed acknowledgment.
The next steps depend on the existing agreement, the requested document, and applicable law. Refusing to sign a new acknowledgment does not automatically cancel your existing funding agreement. It can also prevent an additional funding request from moving forward if the provider requires attorney cooperation.
Can Changing Lawyers Delay My Settlement?
Yes, a transition between counsel may affect the case timeline while the new attorney obtains the file, evaluates the claim, and prepares for upcoming negotiations or court proceedings. The length and impact of any delay depend on the circumstances.
Funding-related communication may also take time if the new lawyer needs to review an agreement or resolve questions about a payoff statement. Raise these issues early, especially if settlement discussions are already underway.
Could my former attorney still claim fees or expenses?
Possibly. Changing lawyers does not necessarily eliminate payment obligations for the former attorney’s work or case expenses. The ABA’s commentary recognizes that a client’s right to discharge counsel is subject to liability for the lawyer’s services; the specific entitlement depends on applicable law and the circumstances. ABA discussion of discharge and attorney compensation
Ask your new lawyer whether any former-attorney claim could affect settlement distribution. Attorney compensation and funding repayment are separate issues that should both be considered when reviewing potential net proceeds.
Can I Receive Additional Pre-Settlement Funding After Switching Lawyers?
Possibly, but another advance requires a new review. Changing attorneys does not guarantee approval or automatically disqualify you.
The funding company may consider the updated case status, expected recovery, existing funding obligations, and other deductions, such as attorney fees and case expenses, that could reduce the money available from a recovery. Your new attorney’s cooperation also matters. Express Legal Funding requires representation by a contingency-fee attorney to qualify. Learn why an attorney is required for legal funding.
Ask what additional funding would mean for your total potential repayment before accepting another advance.
Can I Change Lawyers if I Already Have Pre-Settlement Funding?
Generally, yes. Having pre-settlement funding does not ordinarily prevent you from changing attorneys. Choosing legal counsel is your decision, but you should review your agreement’s notice requirements and tell your new lawyer about the funding.
Completing the change in representation may still involve procedural requirements. In pending litigation, applicable rules may require notice to the court or permission for an attorney to withdraw. The ABA Model Rules recognize these requirements; the rules governing your case determine the actual process. ABA Rule 1.16
Frequently Asked Questions
Do I have to repay my funding immediately when I change lawyers?
No. For an agreement that provides for repayment from case proceeds, changing attorneys alone generally does not mean you must immediately return the money. Have your new lawyer review the repayment terms, notice requirements, and any provisions addressing a change in representation.
What happens if I temporarily do not have an attorney?
A gap in representation does not automatically cancel your existing agreement. Notify the funding company and review your contractual obligations. An additional advance may need to wait until a new attorney takes over and provides the required cooperation.
Will I need to sign a new funding contract?
No, the existing agreement can remain in place while representation details are updated. However, the provider may request additional documents. Read anything you are asked to sign and ask whether it changes your costs, repayment obligations, or other terms.
Can I switch attorneys while my funding application is pending?
Yes, but tell the funding company promptly. It may need to confirm your new representation and obtain updated case information before completing its review. Approval or disbursement may be delayed during that process.
What if my previous attorney never reported the change?
Contact the funding company directly with your new attorney’s information. Ask what confirmation it needs, and give your new lawyer copies of your funding documents so communications can be redirected appropriately.
Get Help With Pre-Settlement Funding When Your Attorney Changes
Already funded through Express Legal Funding and changing lawyers? Contact our team with your new attorney’s information so we can explain the next steps for updating your file and coordinating with your legal team.
If you need additional funding or are considering your first advance, we can explain the application process and attorney cooperation requirements. Call (888) 232-9223 or use Express Legal Funding’s online application to get started. Eligibility and approval depend on your case and applicable requirements.
This article is for general educational purposes and is not legal or financial advice. Funding terms, attorney responsibilities, and repayment procedures vary by agreement and state. Review your documents with your attorney for guidance about your circumstances.
