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Lawsuit Funding: Do You Need Attorney Consent?
by
JG Wentworth
•
February 21, 2025
•
4 min
Navigating the complexities of a lawsuit can be financially draining, especially when it drags on for months or even years. This is where lawsuit funding, also known as pre-settlement funding, comes into play, offering a financial lifeline to plaintiffs awaiting the resolution of their cases. However, one critical question often arises: Do you need your attorney’s consent to secure lawsuit funding? This comprehensive guide will explore the intricacies of obtaining pre-settlement funding and the role of attorney involvement in the process.
Understanding Pre-Settlement Funding
Pre-settlement funding provides plaintiffs with a cash advance against the expected settlement of their lawsuit. This type of funding is particularly beneficial for individuals who face financial hardships due to ongoing litigation. Unlike traditional loans, lawsuit funding is non-recourse, which means that repayment is contingent upon the successful settlement of the case. If the plaintiff does not win the lawsuit, the funds do not need to be repaid.
The Role of the Attorney in Lawsuit Funding
While pre-settlement funding offers immediate financial relief, it is crucial to understand the role of your attorney in this process. Generally, lawsuit funding companies require the consent and cooperation of your attorney before providing a cash advance. Here’s why:
Legal Assessment
Lawsuit funding companies rely heavily on the expertise of your attorney to assess the strength of your case. The funding decision largely depends on your lawsuit’s potential outcome, which is best evaluated by a legal professional. Your attorney will provide the funding company with pertinent information about your case, including the details of the claim, the legal strategy, and an estimated settlement amount.
Ethical Considerations
Attorneys are bound by strict ethical rules that govern their practice. They must act in the best interest of their clients and maintain confidentiality. By involving your attorney in the decision to obtain lawsuit funding, you ensure that all actions are in line with ethical legal practices. Your attorney can also help you understand the terms of the funding agreement, ensuring that it does not compromise any legal strategies or the integrity of your case.
Agreement Review
Before you accept any lawsuit funding, it is imperative that your attorney reviews the terms of the funding agreement. This agreement can be complex, and it often includes provisions regarding the fees, interest rates, and repayment conditions. Your attorney will ensure that the agreement is fair and does not impose unreasonable financial burdens post-settlement.
Get Cash Before Your Lawsuit is Settled
Life doesn’t wait for your settlement, you shouldn’t either.
The Process of Obtaining Attorney Consent
- Discussion: Initiate a conversation with your attorney about your financial needs and the option of lawsuit funding. This step is crucial for making an informed decision.
- Information Sharing: With your permission, your attorney will share necessary case details with the funding company, enabling them to evaluate your application.
- Contract Review: Once a funding offer is made, your attorney should review the contract to ensure that the terms are acceptable and that your rights are protected.
- Approval and Sign-off: If everything is in order, your attorney will give their consent and you can proceed with finalizing the funding agreement.
Conclusion
While you do not legally need your attorney’s consent to seek pre-settlement funding, it is highly advisable to involve them in the process. Their expertise is crucial for evaluating the offer, understanding the legal implications, and ensuring that the funding does not adversely affect the outcome of your case. Always remember that your attorney’s primary goal is to uphold your best interests, making their guidance invaluable in securing lawsuit funding.
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The information is provided for educational and informational purposes only. Such information or materials do not constitute and are not intended to provide legal, accounting, or tax advice and should not be relied on in that respect. We suggest that You consult an attorney, accountant, and/or financial advisor to answer any financial or legal questions.
* Program length varies depending on individual situation. Programs are between 24 and 60 months in length. Clients who are able to stay with the program and get all their debt settled realize approximate savings of 51% before our 25% program fee. This is a Debt resolution program provided by JGW Debt Settlement, LLC (“JGW” of “Us”). JGW offers this program in the following states: AL, AK, AZ, AR, CA, CO, FL, ID, IN, IA, KY, LA, MD, MA, MI, MS, MO, MT, NE, NM, NV, NY, NC, OK, PA, SD, TN, TX, UT, VA, DC, and WI. If a consumer residing in CT, GA, HI, IL, KS, ME, NH, NJ, OH, RI, SC and VT contacts Us we may connect them with a law firm that provides debt resolution services in their state. JGW is licensed/registered to provide debt resolution services in states where licensing/registration is required.
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