The majority of state bar associations prohibit attorneys from providing clients with pre-settlement funding. By providing a client with cash funding, the attorney is put in a questionable ethical position by having a personal stake in the outcome of the client’s case.
Why Lawsuit Funding by Attorneys Is Normally Prohibited
Legal funding by attorneys can go against a client’s best interest in a couple of ways. First, the attorney may pressure the client to settle the case quickly or for less than they are entitled simply to recoup their own money. Second, it raises complex legal questions in the event that the client is unhappy with the outcome of the case or the attorney refuses to release the settlement funds to the client.
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Alternatives for Settlement Funding
Plaintiffs with a pending personal injury claim may qualify for immediate cash based on their anticipated settlement through a third-party funding agency, such as High Rise Financial. The cash that High Rise Financial provides to plaintiffs is not a loan. It is considered a non-recourse transaction, which means that the money does not have to be repaid if the plaintiff does not recover.
The Role of the Attorney
Although the attorney does not provide the funding, they do play an important role in the process. First, the plaintiff should discuss their financial situation with their attorney to see if legal funding is in their best interest. As a general rule, lawsuit funding should only be used to meet immediate expenses while waiting for a case to settle. Most attorneys have worked with various pre-settlement companies before and are able to provide recommendations.
If the attorney agrees to work with a pre-settlement company, the client must then submit an application. With High Rise Financial, the application process takes only a few minutes and can be done online or over the phone. The legal funding company will deal directly with the attorney and/or law firm to discuss the facts of the case and to determine if the application can be approved. In most cases, applications are approved within 24 hours. Once approved, the client receives the cash, which is repaid out of the settlement proceeds when the case is settled. The process is very straightforward and simple.
High Rise Financial has helped thousands of plaintiffs and victims of personal injury accidents meet their financial needs while pursuing their personal injury claim. For more information about the benefits of legal financing, contact a High Rise Financial funding specialist today.