Does My Lawyer Have The Right To Deny Me From Getting A Pre-Settlement Loan?

Reading Time: 4 minutes
Can My Lawyer Deny Me From Getting a Pre-Settlement Loan

No, your attorney cannot tell you to not get a pre-settlement lawsuit loan. You cannot qualify for a lawsuit loan if your lawyer refuses to help you.

To get a settlement advance you must have a lawyer representing you.

Every legal funding company requires borrowing plaintiffs to have an attorney representing them with their lawsuit. Unfortunately, no funding company will invest in a plaintiff that has not yet retained an attorney. This is due to the high risks the loan carries if case the claim fails.

Since your credit score and employment history are not considered in the pre-settlement loan criteria, an attorney’s representation and a solid case are the two main requirements to qualify for a lawsuit loan. You are considered high risk to the settlement lender because, in the event that your case doesn’t successfully settle, you won’t be legally responsible to pay back the money. At all. This is why your attorney’s acknowledgment will be required on the contract before releasing funds because your attorney will be paying back the funds after you win your case.

Understandably, you may feel like attorneys are expensive and intimidating. But the good news is that you can hire one now under a contingency agreement. This means that you won’t have to pay your lawyer’s fees until your case is settled and paid. Although an attorney’s fee can take up to 2/5 of your settlement, the value an attorney adds significantly outweighs what they charge.

Reasons why you need an attorney for your case

  • Only an attorney has the experience and education to represent your case to success.
  • With a lawyer, you also get to qualify for a pre-settlement advance.
  • Your lawyer is knowledgable enough to deal with the insurance company, remember the insurance is a billionaire.
  • Your attorney can prove liability
  • Your attorney won’t get intimidated to settle your case for less and will ensure you get compensated for damages.
  • Your attorney can give you advise and direction throughout your entire case.

Learn more about this here: Pre-settlement funding without an attorney

Can my lawyer give me money?

Lawyers do not give advances on settlements because they are barred from lending money to their clients. This is why pre-settlement loans from third-party financing companies can be a great way to help financially restrained plaintiffs pay for bills before their lawsuit concludes. Some plaintiffs get the settlement checks early; others have to wait years before they get an offer.

Those who can’t wait years for a settlement check may feel helpless when their attorney thinks that lawsuit funding may just not be a good idea. Or at least not yet. Although your lawyer cannot disallow you from getting a pre-settlement loan, understanding why they don’t want you to get it now can improve your chances of being approved in the future.

Reasons why your attorney may be denying you from getting a lawsuit loan.

Although anyone with an active case can apply for a cash advance on a pending lawsuit, the first step before applying should be speaking to your legal representative. Listen to what your attorney has to say; figure out how much money you need and how urgently you need it.

If you are in a situation where you need a lawsuit loan immediately due to emergency matters, but your attorney denies you from getting it, make an appointment and find out the reason why they do not want you to get it.

Many factors go into your lawyer determining whether they want you to proceed with a pre-settlement lawsuit loan. The most common reasons for rejection include:

  • You live in a non-fundable state (see the states we fund to learn more);
  • You have exceeded the number of advances you could take out;
  • Your claim is too early to fund;
  • In rare cases (less than 0.1%), the attorney won’t work with pre-settlement lenders; and
  • Out of ethics, your attorney could also be refusing if the purpose for the loan isn’t for an urgent reason—e.g. housing, transportation, electricity bills and food.

If an attorney doesn’t wish to sign a contract, Baker Street Funding works with such attorneys offering them the LOP of their choice. Baker Street Funding also gives attorneys the option of minor modifications to the contract. If your attorney is worried about another funder’s contract, please have them call us and we will work with them on approving your case with a contract that they can approve.

But if your lawyer completely refuses to collaborate on your loan, unfortunately, you cannot get a lawsuit loan without an attorney’s signature.

Is my attorney commiting an ethics violation by denying me from getting pre-settlement funding?

If your attorney is refusing to provide information or rejecting to acknowledge the lien that a legal funding company has for you, they are most likely violating the ethics guidelines of the state they work in.

Oftentimes clients are worried about whether or not their attorney will agree to a pre-settlement advance. Your attorney represents you and is your sworn advocate. What this means is that while they are able to make suggestions and give advice on how to handle your case, they are not allowed to force you to do something you don’t agree to. Your attorney can advise you on the funding process but they cannot refuse to allow you to take out a settlement loan.

Absolutely no lender will provide you with pre-settlement funding with an attorney that doesn’t want to acknowledge the loan and help their client. At the end of the day, your lawyer will be the one paying back the advance, so they must be present every step of the way.

A settlement loan is ultimately your decision and your attorney must follow your instructions when you ask them to share case documents, information and sign on the lawsuit loan contract.

 How can I avoid being rejected for a lawsuit loan?

Lenders look at your case’s strength, attorney’s cooperation, insurance limits, liability, and background check as crucial markers in determining a lawsuit funding eligibility. If a lender is not accepting your case, ask why. If possible, work to improve your case with your attorney before applying again so you can strengthen your application and approval odds.

If you are concerned about being turned down, speak to your attorney about us. At Baker Street Funding, we specialize in providing additional funds to plaintiffs that other lenders have denied. With Baker Street Funding, you can take out as many loans on your settlement as your case allows. Our process is fast, and it will take approximately 24 hours to get you approved for a pre-settlement loan. We also provide same-day pre-settlement loans to plaintiffs with settled cases.

Baker Street Funding can provide you with lower pre-settlement funding interest rates (non-compounding) and will do our best to team up with your attorney to get you the funds you need now.

Want to learn how much funding costs? Check out our pre-settlement loan calculator!

See some of our settlement funding products

Learn more about pre-settlement funding →

Select a legal funding service to get started. 

Attorney Requests

Lawsuit Loans

Litigation Funding

Personal Injury Loans

Settled Case Loans

Surgery Funding

Or just call us at 888.711.3599 to apply.