Kamis, 18 April 2013

When It Comes to Lawsuit Funding, Give Your Attorney a Break

Applicants for lawsuit funding, otherwise known as lawsuit loans or litigation cash advances, have wide and assorted reasons for seeking pre-settlement cash against the potential recovery of their legal proceeding. In many instances, applicants require funding as quick as possible. Of course, lawsuit funding companies are in the business to help these individuals and it is in their best interest as well that the transaction take place in a timely fashion.

Unfortunately, many clients are disappointed to experience that the whole process takes longer than expected. Compounding the problem is promises of “12 hour approvals” and “get your money today” advertisements all over the internet. That is not to say that no cases are funded in the 12-24 hour time frame. In fact, lawsuit funding contracts are routinely executed on the same day as the application. And this occurs each and every day.

The problem is adjusting the applicant’s expectations because not every case is submitted, paperwork received, attorney interviewed, contract drafted and executed, and money disbursed all in one business day. In prior articles, we discussed some potential obstacles standing between the applicant and a successful funding transaction. Below, we discuss the attorney’s role in the funding process and how his participation is a necessary prerequisite for anyone hoping to obtain a lawsuit cash advance. Further, we consider the attorney’s point of view as it pertains to the process of obtaining a cash advance against a case.

The lawsuit funding process begins and ends with attorney cooperation. Because the lawsuit loan business is driven, first and foremost, by the compilation of paperwork, attorneys are usually in the best position to assist in the transaction. And the vast majority of attorneys sincerely desire to help their clients, especially if in so doing, the case results in a better outcome.

The real difference between the client and the attorney, when dealing with the steps needed to successfully pursue cash advance funding, is urgency. For the most part, attorneys do not personally feel the financial strain the applicant is feeling. He is simply conducting his work load as he runs his business. It would be unfair to ask an attorney to monitor the finances of each and every client he represents. That is simply not in the scope of his representation. Normally, neither is representing the client in a lawsuit funding transaction.

That is not to say that attorneys do not cooperate at all. When problems do arise, they usually revolve around the timing of the response. Frequently, the applicant needs the money yesterday. The attorney however is often unable to respond within the client’s immediate time frame. Applicants would do well to understand that their lawyer is trying to run a business. He has more than one case and usually a large work load. Asking the lawyer to drop everything that he is doing to help compile paperwork is not realistic.

As stated above, attorney cooperation is vital to obtaining lawsuit funding. It makes no practical sense to pester or otherwise antagonize this individual. Lawsuit loan applicants would be better served if they simply adjusted their expectations and gave their attorney some time to fit the tasks into his schedule. After all, his cooperation is crucial.

The good news is that lawsuit funding is now part of most personal injury practices. As attorneys become more and more familiar with the process, they will be less and less resistant to it, and more able to allot the proper amount of time to the transaction.

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