Quick answer: You cannot get a lawsuit loan without an attorney’s consent. Attorney involvement is essential for evaluating your case and managing the loan process.

Are you urgently in need of funds to cover your bills and living expenses? Maybe your attorney is uncooperative or unavailable, leaving you wondering if you can get a lawsuit loan without his or her signature or consent. It’s a common question, especially for those feeling stuck and uncertain.

Understanding why attorney involvement is typically required can help you set realistic expectations. Let’s dive into why an attorney’s consent is required and what it means for your funding prospects.

Here are some key takeaways:

Attorneys must sign off on lawsuit loan agreements for case evaluation and repayment.
Attorneys may refuse to support pre-settlement funding due to state restrictions, existing advances, case timing, non-urgent needs, and personal policies.
The pre-settlement loan process can be delayed, and even rejected without the involvement of a lawyer.

Why are Attorneys Required in the Pre-Settlement Funding Process

Securing a pre-settlement loan requires your attorney, and there’s a good reason for that. Lawsuit loans are a form of non-recourse financing. This means you’re not personally responsible for repaying the advance if your case doesn’t result in a settlement. The funding company takes on that risk.

One of the standout benefits is that your credit, assets, or income don’t affect your eligibility for lawsuit funding. Instead, what matters is the strength, complexity, and potential value of your case, evaluated in partnership with your attorney. In the end, it’s your lawyer who helps the lender decide if your case is strong enough to win for them to approve the funds.

However, before releasing the funds, your attorney must sign a legal funding agreement (LFA) or issue a Letter of Protection (LOP) to the lender. This creates a lien on your potential settlement and guarantees repayment to the funder.

When your case settles, the settlement funds go into your attorney’s escrow account. At this point, your attorney’s obligation is to repay the lawsuit loan from the settlement amount after all other liens are satisfied. Finally, the remaining balance is then given to you.

You see? Without close cooperation between your attorney and the loan company, securing pre-settlement funding is impossible as there’s no way to predict the outcome of your case, its potential merit and getting paid. Based on all lenders standpoint, it is highly unlikely that they’ll receive repayment or that you’ll even win if your lawyer declines to communicate or sign the funding agreement.

Can Your Attorney Refuse to Support Your Pre-Settlement Funding Decision?

When an attorney refuses to sign a legal funding lien for pre-settlement funding, it can create a conflict with the ABA Rule 1.2. According to the American Bar Association, “a lawyer shall abide by a client’s decisions concerning the objectives of representation and… shall consult with the client as to the means by which they are to be pursued.” This means your attorney should respect your decision to seek a lawsuit loan and provide the necessary support.

You lawyer is also required to consult with you and provide the necessary information for making informed decisions. This includes discussing the implications of obtaining pre-settlement funding.

If you decide to get a pre-settlement loan to cover your living expenses, your attorney must follow your instructions. He or she should share the necessary case documents with the lender and sign the lawsuit loan contract. Remember, the decision to get funding is ultimately yours, and your attorney should guide and support you through this process.

Possible Reasons for Your Lawyer’s Objection to a Pre-Settlement Loan

If you urgently need a lawsuit loan but your attorney is not agreeing, here are some possible reasons.

State Restrictions. You live in a state where lawsuit loans are not allowed.
Maximum Advances. You have already taken out the maximum number of advances permitted by the legal funding company.
Case Timing: Your personal injury lawsuit is too early in the process to qualify for funding.
Non-Urgent Needs. If the loan isn’t for an urgent need, like housing, transportation, utility bills, or food.
Attorney’s Policy. In rare cases (less than 0.1%), the attorney simply has a policy against working with lawsuit funding companies, or only works with 1 funding company.

Some Attorneys Might Prefer a Letter of Protection (LOP) instead of Signing the Legal Funding Agreement

Sometimes, attorneys prefer to issue a Letter of Protection (LOP) instead of signing a funding agreement. Here’s why:

Control Over Case Funds. An LOP lets lawyers manage how settlement money is spent, so important expenses like medical liens, are taken care of first.
Simplified Process. LOPs can be quicker and involve less paperwork compared to pre-settlement funding agreements.
Ethical Concerns. Some attorneys may have concerns about the interest rates and fees associated with pre-settlement loans, so they prefer other ethical alternatives.
Professional Judgment. Attorneys might believe an LOP better serves the client’s long-term financial and legal interests.
Avoiding Additional Costs. LOPs do not carry the interest and fees that pre-settlement loans do, potentially saving clients money.
Client’s Financial Situation. Attorneys might assess that an LOP will cover immediate expenses without the burden of loan repayment.

At Baker Street Funding, we understand that attorneys may have concerns about pre-settlement legal funding agreements. That’s why we work closely with them to resolve these worries and provide a Letter of Protection (LOP) that suits their preferences.

We also offer the option to make minor modifications to our agreements. If your attorney is uncomfortable with another lender’s contract, we encourage you both to reach out to us. We will collaborate to approve your case with a contract that everyone can agree on.

Tips on Getting Your Attorney’s Consent on Legal Funding

Understand the Legal Funding Process

Before approaching your attorney, make sure you understand how legal funding works. Pre-settlement funding provides you with a cash advance based on the expected settlement from your lawsuit. This is a non-recourse loan, meaning you only repay it if you obtain monetary compensation. Knowing these details allows you to have an informed discussion with your attorney.

Prepare Your Case

Gather all relevant documents and information about your case. This includes medical records, police reports, and any other evidence that supports your claim. Having a well-organized case file shows your attorney that you are serious and prepared. It also makes it easier for him or her to understand why you need the funding.

Seek Flexibility

If your attorney is hesitant about the costs of the funding agreement, ask if there are any specific changes he or she would feel more comfortable with. Whether it is the interest rates, repayment terms, or the percentage of the loan that will be repaid from the settlement, some funding companies, like Baker Street Funding, are willing to work with your attorney.

Communicate Your Needs

Explain to your attorney why you need the pre-settlement funds. Whether it’s to cover medical bills, living expenses, or other urgent needs like rent or mortgage, providing a clear and honest explanation helps your attorney see the necessity from your perspective. Be specific about how the funds will be used and how they will help you during the lawsuit process.

Mention the Benefits

Show your attorney how the funding can benefit your case during settlement negotiations. For instance, having available cash can allow you to wait for a fair settlement rather than accepting a low offer due to financial obligations.

Be Persistent but Respectful

If your attorney initially refuses to sign the lawsuit loan agreement, don’t give up immediately. Politely ask for a detailed explanation of the potential concerns involved and see if there’s a way to find a solution. Persistence shows your commitment to your case and your financial needs, but always maintain respect for your lawyer’s professional judgment.

Consider a Second Opinion

If your attorney simply does not feel like helping with the funding process, or worls with a different lender and refuses to sign a lawsuit loan agreement with lower costs, it might be worth seeking a second opinion. Another attorney might be more willing to assist you and prioritize your best interests during this critical time.

While you can’t get pre-settlement funding without your attorney’s consent and signature, remember that you have control over accepting any funding offer. If a lender presents terms that don’t benefit you, you can decline. If you find a funding company offering better rates, your attorney should support you, especially when your financial well-being is at stake. A cooperative attorney demonstrates a commitment to your well-being and your case by helping you secure the lowest funding terms.

The Importance of Getting Your Attorney’s Consent for Pre-Settlement Funding

Securing pre-settlement funding involves several critical steps and requires your attorney’s active participation. Your attorney assists the lender in assessing the strength of your case, handling necessary legal documents, and managing the repayment of the loan from your settlement funds. Without your lawyer’s cooperation, obtaining the funding you need becomes unattainable, as lenders rely on this input to make informed decisions about the loan.

If your attorney is hesitant to assist with securing a lawsuit loan, it’s important to have an open and honest conversation. Understand his or her concerns and work together to resolve any issues. If your lawyer remains discourteous, seeking a second opinion can provide alternative financial options and put you in the best position during this difficult time.

At Baker Street Funding, we recognize the frustration of dealing with an uncooperative lawyer. Our team is here to facilitate a smooth process by offering to work directly with your attorney and find a solution that benefits everyone.

With Baker Street Funding, you’ll find flexible funding options, competitive terms, and a supportive process, all designed to help you get through this period with peace of mind. Contact us at (888) 711-3599 to secure the financial assistance you need and move forward with your case.