There is no such thing as a “loan” on a personal injury case because a loan has to be paid back no matter what. The correct term is non-recourse legal funding. To keep it simple I’m going to call it legal funding. This type of money is available to people that are hurt as a result of the negligence of a third party. There are funding companies that bet on your case and charge you a fee for doing so. This blog post discusses some of the ways you can get legal funding and what you should know
Can My Lawyer Give Me Money?
No, personal injury lawyers are prohibited from providing money to clients because of ethical duties. It would make my life a whole lot easier if I could personally fund cases. Problem with that is the Bar can take my license if I do that. If your lawyer gave you money you have a lawyer that is cutting corners and jeopardizing their license. They will probably screw you over at the end of the case in my opinion. However, there are companies that do to fund against your case
Where Do I Find A Legal Funding Company?
The internet. Google Legal Funding Company in the city where you are located. Finding a funding company across the country can lead to problems. In Louisville, Kentucky most people use a company called Barrister Capital. In Southern Indiana people sometimes use Capstone
How Does Legal Funding Work?
Once you contact the funding company they will send a list of questions about your case to the lawyer. The funding company wants to make sure they are making an educated decision on whether or not to give you money. A lot of the decision on how much money to fund is based on the damages the Plaintiff sustained. If you are involved in a parking lot crash they are unlikely to fund a bunch of money. If you are in a hospital bed and hit by a Coca-Cola truck the sky is likely the limit assuming liability isn’t an issue. This does not mean you should take out a bunch of money, see below.
What Are The Rates For Legal Funding?
Money is not cheap. I have all of my clients sign paperwork having them acknowledge that if they take out funding it is not cheap to pay it back. Some companies take a percentage and apply it with an origination fee. Contact the funding company they will give you a breakdown of how the money is paid. I’d ask them for the numbers on a $1,000.00 amount to get an understanding of the numbers.
Why Can’t I Get A Loan On My Injury Case?
It is probably too early in the case for the funding company to make a decision. Normally they want to see three things 1) liability is good and you are not at fault. 2) that you are hurt and treating somewhere. 3) there is insurance coverage on the other side to pay you when the case resolves. If any of those three things are missing the funding company isn’t likely to provide funds. They also are unlikely to fund if there is no first party coverage aka coverage on your vehicle. If you don’t have coverage the amount of the recovery is sometimes reduced making the funding riskier. They also won’t fund you if there is a child support lien.
What Happens If I Lose My Case?
If you lose the case the funding isn’t owed back. This is why funding companies are diligent in their decision-making and not willing to just hand out money.
Here is a link that Law.com did giving further information: https://www.law.com/international-edition/2018/04/17/litigation-funding-what-you-need-to-know-about-this-fast-growing-business/?slreturn=20240318102725.
To be absolutely clear I don’t have a position on funding. Some of my clients need it and some do not. I just want to make sure my clients are aware that the money is not free and they will have to pay it back at a higher kick. Further information available by emailing me bdettman@dettmanlawgroup.com or by calling 502-779-9998. Consultations are always free.
