Why can’t my attorney give me a lawsuit loan?
After experiencing a horrendous event causing a lawsuit, the victim and family often have to re-assess and establish a potentially very different life. Depending on the specifics of the case, multiple life areas can be affected. Typically, the victim reports struggling throughout the entire spectrum of mental, social, physical, emotional, and financial areas. However, unfortunately, finances have a tendency to really weigh heavily on the outcome of the entire lawsuit. This is largely due to the far reaching consequences commonly associated with financial struggles. In general, when an individual goes through a rough patch with money, they will be statistically more likely to experience difficulties in their mental, physical, social, and emotional health. This detrimental connection actually exacerbates the declining levels of function in those core areas of life, especially for a victim in the stressful and frustrating process of litigation.
Litigation funding companies have realized the intense financial struggles that victims involved in legal cases are forced to face. Lawsuit funding companies actually offer specialized settlement advancements for victims in this precise financial bind. These specific loans are categorized as non-recourse financing, ultimately, legally leaving the victim free of any form of repayment if the case does not produce a victorious outcome. This unique lending opportunity was specifically designed to help the victim with financial struggles commonly experienced after going through an incident serious enough in nature to require legal intervention.
Often times, the victim will first approach their attorney with any financial concerns to ask for professional and legal advice. Sometimes the victim will almost respond with a level of personal offense when the attorney first mentions contacting a litigation funding company for some financial help. However, there are certainly some compelling reasons for this referral.
Sometimes victims have a challenging time understanding why their attorney is able to provide them with case expenses, but cannot provide any aid at all for necessary living expenses. The American Bar Association strictly prohibits all attorneys from providing any monetary support to their clients beyond the case expenses. At first introduction, this concept may be challenging to fully comprehend. However, this rigid prohibition is actually put into place to protect the victim in the lawsuit. In professional terms, attorneys are restricted from providing their clients with monetary support beyond the case expenses to avoid the creation of a conflict of interest within the attorney-client relationship.
Perhaps best to explain this concept with an example, you contracted an attorney to provide you with legal advice and professional help throughout a personal injury lawsuit, in which you suffered some major back injuries. Typically, there are multiple treatment methods to utilize to attempt to ameliorate the ailing back. Some of the more common treatment choices include chiropractics, physical therapy, acupuncture, medication, and even surgical intervention. If you were in need of financial help beyond just covering the case expenses, you would be asking your attorney for additional money that you may urgently need. Unfortunately, sometimes this situation can place pressure, directly or perhaps more subtle, on you, the victim, to possibly choose more expensive treatment options. Completing pricier medical procedures will have a tendency to increase the ultimate settlement amount. However, the most extreme and expensive treatments may not be the best fit for for your specific physical condition.
Contacting a neutral and unbiased lawsuit funding provider will be certain to provide you with the finances you need without potentially risking your health.