While you await a lawsuit settlement or verdict, you may be strapped for cash. You might wonder whether your lawyer can loan you money to hold you over until your case is over.
Even though you cannot borrow money from your lawyer, you can seek out a lawsuit loan from a pre-settlement lender.
Ethical Considerations Around Lawyers Giving Loans
In the United States, it is unethical for an attorney to give a client money for a case that isn’t resolved. In fact, attorneys can face severe penalties for giving clients money, including a suspension from practicing law or disbarment. This is because a monetary interest in the case can affect an attorney’s professional judgment.
Very rarely, an attorney can advance costs directly involved in your case, such as litigation expenses, the cost of medical examination, and fees for obtaining evidence. You cannot borrow money from your lawyer outside of this category.
Can My Attorney Refer Me to a Company Who Can Give Me a Cash Advance?
Even though you cannot get a loan from your attorney, they can set you up with a pre-settlement lender that offers lawsuit loans. In fact, most lenders require you to have an attorney representing your case.
When you apply for a pre-settlement lawsuit loan, you sell a portion of your settlement to the lender in return for a cash advance.
A pre-settlement lawsuit loan helps pay for living expenses, legal fees, medical bills, and more. Sometimes, people use lawsuit loans to prolong their case, which increases the amount of time they have to negotiate a higher settlement.
Pros and Cons of Pre-Settlement Loans
Like most financial products, there are both positive and negative aspects of getting any type of loan. Here’s what you should consider when thinking about getting a pre-settlement lawsuit loan.
The Benefits of Getting a Lawsuit Loan
A cash advance from a pre-settlement lawsuit loan can cover any expense you have. They are also risk-free, meaning that you don’t have to pay the lender back if you lose your case. Finally, they can help you extend the length of your case, potentially increasing the settlement amount.
The Drawbacks of Getting a Lawsuit Loan
Pre-settlement lawsuit loans accrue interest. While reputable lenders may offer rates as low as 1-3%, others may charge significantly more. Since lawsuits can take months or years to reach a settlement or verdict, the interest can add up.
Apply for a Pre-Settlement Lawsuit Loan from Nova Today
If life won’t wait for your settlement, apply for a lawsuit loan from Nova Legal Funding. We have the lowest rates in the industry, ranging from 1-3% and our loans are risk-free. Upon approval, we deliver your money within 24 hours so you can have peace of mind.
We also represent a wide variety of cases ranging from auto accidents to medical malpractice. Apply now or contact us today at 800-760-0704 for more information about our pre-settlement lawsuit loans.