As you do your research on pre-settlement loans, you probably have been asking yourself questions like:
- How do lawsuit loans work?
- Who’s the best lawsuit funding company?
- What are pre-settlement loan company requirements?
And there are hundreds of pages out there where you can find the answer, but here’s one question that many are asking, but very few spend their time explaining:
Can I Get Pre-Settlement Funding Without My Attorney’s Consent?
Let’s talk about it.
Can I Get Pre-Settlement Funding Without My Attorney’s Consent?
The quick answer to this question is “no.”
It is impossible to keep your lawyer in the dark as you apply for pre-settlement loans. Your lawyer is critical in getting approved for your lawsuit loan and receiving maximum financial assistance when applying for pre-settlement funding.
On top of that, a reputable pre-settlement funding company should not approve your application for a pre-settlement loan without your attorney’s approval. And there’s a good reason for that:
- Your attorney will be key in determining the strength of your case, which will be the basis for your lawsuit loan amount.
- Your attorney will work with the legal funding company to finalize a fair loan agreement and help you understand everything in it.
- Your attorney will be responsible for issuing payments to all the parties involved once the case has settled.
Why Do You Need A Pre-Settlement Loan?
When you sustain a personal injury from an accident that will cause you to be out of work for months, you will wonder how you will buy food for your family, pay your rent, and pay your medical bills.
Having medical insurance is great, but if you’ve been a victim of an accident or a personal injury, it is only right to claim for damages. Medical insurance doesn’t cover rent, car notes, or groceries.
However, filing a personal injury claim can take months (or even years) to complete. Both parties will be given the opportunity to plead, and the court will take time to decide whether you should be awarded for your losses.
What Do You Need To Do To Get Started With Your Pre-Settlement Loan?
To get started, you must first file a lawsuit. Filing a lawsuit also means hiring a lawyer who files a lawsuit on your behalf. This is also a great time to discuss your need for pre-settlement funding with your lawyer to determine the best fee arrangements.
There are lawyers who work on a contingency agreement. It means they will represent you in exchange for a percentage of the settlement award at the end of your case. This percentage of your settlement reward typically can vary.
Once you have a pending personal injury claim and a lawyer who will handle your legal representation, legal funding companies are likely to approve your application pending the case details.
Why You Need Attorney Consent To Qualify For Pre-Settlement Funding
As part of the lawsuit loan application process, reputable consumer legal funding companies like Stonewood Funding will need information about yourself including the details of your case. This will provide them with needed information to determine if you qualify, including information about the defendant and the strength of their defense.
With your lawyer’s help, the legal funding company will be presented with vital information about your case which will be used as the basis to determine the expected settlement and the timeline of the awards.
Once the assessments are completed, your legal funding company will have determined the amount of money you can access through lawsuit loan funding. Your lawyer will continue to work with your legal funding company to complete the loan agreement or contract.
What Information Do Legal Funding Companies Need From Your Attorney To Approve Your Pre-Settlement Loan Application?
The following details are often requested from your lawyer by legal funding companies:
- Details of the accident. When, where, and how it happened.
- Information about the defendant including their insurance policy.
- The extent & severity of your injuries.
- If the accident causes you permanent disability.
- Your chances for a full recovery.
- Information about any relevant & realized property damage.
- Your medical expenses.
- Your current and future income loss.
What If My Lawyer Denies My Request For Pre-Settlement Funding?
Traditional loans can have heavy upfront and hidden fees and take very long to process. Not to mention the approval process which includes a credit history check or your financial ability to repay.
Of course, you can’t ask your lawyer for a cash advance as that can often be seen as a conflict of interest and even illegal in some states. Circumstances like this can be very stressful. Unfortunately, your application for legal funding will not be approved without your attorney’s signature.
Although it is not required that your lawyer approve your request for pre-settlement funding, he or she should be your advocate and must have a full understanding of your situation. Talk to your lawyer about how you need cash to pay your living expenses and how it could assist you in winning the case.
How Can Pre-Settlement Funding Help Close Cases In Your Favor?
Once you have your pre-settlement loan, you will have the money for daily expenses, bills, and rent. You won’t have to force your attorney to settle the case prematurely which will buy your attorney time to build your case and settle it with the maximum settlement award.
What Are The Possible Reasons Your Lawyer Would Deny Your Lawsuit Loan Consent?
Here are a few common reasons why your attorney is holding back in giving you consent:
- It might be too early in the process to request legal funding. Remember, the strength of your case has a big role in your approval.
- You have exceeded the number of lawsuit loans you are allowed to have.
- It could be that your attorney doesn’t work with legal funding companies.
Regardless of the reason for denial, it’s important to discuss your financial needs upfront with your attorney for the best chance at approval.
How To Ensure You Get Approved For Pre-Settlement Funding?
If you need money for living expenses and wish to apply for pre-settlement funding, you should discuss this with your lawyer to increase your chances of getting approved.
Work with your attorney to improve your case. The stronger your case and the sooner the expected timeline for awards and settlement are, the higher your chances of getting approved for a lawsuit loan.
You Got Your Pre-Settlement Loan. What Happens After The Case Has Ended?
If you win the case, celebrate! Your hard work has paid off.
But please note – the settlement proceeds will not go straight to your pocket. Your funds first go to your attorney who will then put the fund in an escrow until the check clears and until all the conditions are met. Your attorney will start issuing payments to the parties involved based on priority, and that includes your legal funding company.
But what happens if you took out pre-settlement funding with Stonewood Funding and you lose the case? No problem. We bare all the risks of your loan. Unlike a traditional loan or a cash advance, there is no need for you to pay us back.
Why choose Stonewood Funding for your lawsuit loan application?
If you are seeking a court settlement because you’ve been a victim of an auto accident or personal injury, you could qualify for Stonewood Funding’s pre-settlement legal funding. Our advice is to talk to your law firm or lawyer to determine if financial assistance through a pre-settlement loan is the best for you.
As a top pre-settlement funding company with an established reputation and passion for the satisfaction of our clients, our service focuses on helping you stay financially afloat as you wait for your settlement funds.
We offer strictly non-recourse pre-settlement lawsuit loans so we bare all the risk of your pre-settlement funding. We also offer post-settlement funding for cases that have already been settled.
We take away your worry about living expenses, medical expenses, mortgage payments, and other financial obligations regardless of how the case is settled in the end.
Questions? Contact your local Los Angeles lawsuit loan company today!