In some cases, you can get pre–settlement funding without attorney consent. However, many companies will not provide funding until after they’ve spoken to your lawyer.
Additionally, trying to get funding without telling your lawyer can cause you to receive a lower amount of funding with higher interest rates.
Therefore, it’s generally advisable to speak to your lawyer before you seek pre-settlement legal funding. A lawyer can help when you need this kind of funding to handle your daily expenses and legal fees before the resolution of your claim.
Can You Get Pre-Settlement Funding Without Lawyer Consent?
Some plaintiffs can secure pre-settlement funding without the approval of their lawyers. However, most reputable pre-settlement firms will not approve the funding without speaking to your lawyer, and trying to get funding without telling your lawyer can have negative consequences.
Therefore, most professionals strongly suggest that you confer with your lawyer before trying to get this type of funding.
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Benefits of Telling Your Lawyer About Pre-Settlement Funding
Informing your lawyer before you apply for pre-settlement funding can benefit you in several ways. Your attorney can help:
You Identify Reputable Lenders
Not all pre-settlement funding companies have the same reputation. Your lawyer can help you identify lenders who can treat you fairly, helping to minimize the stress you may experience regarding this process.
Attorneys may draw on recommendations set up by the American Bar Association (ABA) when helping clients get pre-settlement funding. According to the ABA, plaintiffs should only accept funding if:
- The company clearly discloses all funding terms
- The company only offers non-recourse contracts
- The company has no influence on your lawsuit
However, these guidelines only serve as suggestions because, currently, no laws exist that require companies to adhere to them.
Handle Paperwork
A lawyer can assist as you gather the documentation you need to submit to the funding company. Your attorney can also look over the funding contracts you receive to ensure that they’re properly in order.
Explain Your Case
Pre-settlement lending companies generally base the funds they offer on the facts surrounding your case. A lawyer can offer insight into your claim, potentially boosting your chances of getting sufficient funding to cover your expenses.
Without information from your lawyer, a company may request additional documentation or even refuse to provide funding.
Are There Drawbacks to Applying for Funding Without a Lawyer?
Plaintiffs who try to get pre-settlement funding without telling their lawyer may face several drawbacks. For example, moving forward with this process without the support of an attorney can increase the chances of falling for a scam.
Additionally, the company may offer funding with higher fees and interest rates if you do not have legal support. So, while you can get pre-settlement funding without attorney consent in some cases, it may work against your best interests to take this step.
Furthermore, you should keep a few legal considerations in mind when considering applying for funding without telling your lawyer.
State Laws May Restrict the Application Process
States set their own laws regarding pre-settlement funding. Some of them will require plaintiffs to have representation from a lawyer if they want to apply to a licensed pre-settlement funding company.
In these states, you’d have to apply with an unlicensed company if you want to seek funding without telling your lawyer. Unlicensed companies could attempt to take advantage of you, increasing the risk of getting funding.
Keeping Information From Your Lawyer Can Impact Your Case
Keep in mind that your lawyer needs to understand every aspect of your claim to provide you with dedicated representation. Keeping information from your legal representative could have an impact on the results of your case.
Therefore, you should carefully consider the decision before you if you want to apply for pre-settlement funding without the approval of your attorney.
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Reasons to Apply for Pre-Settlement Funding
Many plaintiffs wonder if pre-settlement funds are the right choice for them. These funds can provide the money you need to handle financial pressures when going through the legal process. For example, you may decide to apply if you face:
- Financial hardship while going through litigation
- Urgent medical issues that require ongoing treatment
- Issues covering your daily living expenses
Legal matters can take months or even years to resolve, and you cannot get funds to cover your losses until the resolution of your claim. If you need funds to cover healthcare expenses, the costs of living, or legal fees, you may consider pre-settlement funding to cover these costs.
Why Some People Seek Funding Without Attorney Consent
Sometimes, attorneys advise clients not to seek pre-settlement funding for various reasons. They may not believe a plaintiff has a strong enough case, or they could find this form of funding against their personal ethics.
In these situations, a plaintiff may decide to go ahead and apply for pre-settlement funding to ease the financial pressures they face when going through the legal process. While getting funding without attorney approval is more challenging, it may still be possible.
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Talk to Us About Your Pre-Settlement Funding Options
So, can you get pre-settlement funding without attorney consent? In some cases, yes, you can get this form of funding without the permission of your lawyer. However, you may want to work with your lawyer when making this decision.
You can learn more about funding and the application process with our team at Pegasus Legal Capital. We’re ready to stand as your trusted legal funding partner.
Your pre-settlement funding consultation is free - contact us today!
