Can You Get a Loan From Your Attorney?
Personal injury cases can take one to two years to resolve in court, with some taking even longer. During that time, you could face a large financial burden, especially if your accident deprived you of your ability to work. You may have heard about people borrowing against their future settlement in the form of a settlement loan. Can you borrow this money from your attorney, or do you need to turn elsewhere for it?
Your Attorney Can’t Give You a Loan
Unfortunately, you can’t get a loan from your attorney to cover the costs of your settlement case, and they could even lose their license if they were to do so. This is because your attorney would face unethical incentives to fund cases that otherwise wouldn’t be taken to court. The good news is that you can obtain financing for your settlement case from a variety of sources. Your lawyer will also be able to help you pay for some expenses in certain circumstances.
What Can My Attorney Pay For?
While your attorney can’t give you a settlement loan, there are a few expenses they can help to pay for in some extremely limited circumstances. In some cases, they are allowed to schedule an advance payment for some of the following costs, which are then dedicated from your eventual settlement. Some of these expenses include:
- Court fees
- Litigation expenses
- Case costs
- Living expenses
While many states prohibit these actions, many state bar associations support them, meaning your attorney may have more or less flexibility when it comes to payment depending on your location. When an attorney is able to cover these expenses, it is often done on an emergency basis. Your attorney can also help you find a lawsuit loan to pay for your expenses while you wait for your case to resolve. If you need more information about lawsuit loans alternatives you can find it here.
What is a Lawsuit Loan?
A lawsuit loan, also known as a settlement loan, is simply a loan taken out against the future hypothetical value of your settlement. While they can carry high fees, many people turn to them because they simply can’t afford to pay their bills or properly pursue their settlement without it.
Where Do I Find a Settlement Loan?
While your attorney can’t loan to you directly, they can direct you toward a settlement loan company that can help you pay for your expenses during your court case. A settlement loan isn’t actually a loan, and this world can be somewhat difficult to navigate without an expert. Your attorney will also need to approve your lawsuit loan before you are issued one.
What Are Alternatives to a Settlement Loan?
If you don’t want to obtain a settlement loan, you could try to take out a personal loan from a bank. You could also ask friends and family members for help with paying your expenses, or hold a fundraiser to do so. You can also explore your options to obtain an advance on your settlement, also known as pre-settlement funding. This type of financing is not a loan and doesn’t have any interest.
While your attorney can’t loan to you directly, they can help you navigate through your financing options to help pay for your settlement case. While it can seem intimidating at first when you’re considering all of your expenses related to the case, there are many options available for you to help pay for them. You don’t need to miss out on winning what you deserve from your case simply because you’re not able to pay for it here and now.
comments powered by Disqus