Legal Advance
A legal advance is a financial instrument provided to plaintiffs and claimants by an investor. The investor will provide the client with financial assistance to help pay for their bills while in a pending injury claim or lawsuit. While legal advances have been around for over a decade, most attorneys and plaintiffs are still unaware the option exists.
If you are considering a legal advance against a pending or settled case, contact LawLeaf today.
A legal advance is oftentimes referred to as lawsuit funding. When a person applies for a legal advance they may need money to pay for medical bills or living expenses. During the course of any lawsuit a person may consider settling because they can’t afford to wait. This can be disastrous if the person has ongoing medical needs that are not included in the settlement offer. If a person prefers to wait for a bigger settlement offer they may borrow against their lawsuit, in hopes a larger offer is made.
What is included in legal advance agreement?
A legal advance agreement is also referred to as a purchase agreement or contract. When a company approves a client for advance against their case a contract will be used to finalize the deal. The agreement it will include the name and contact information of both the client and attorney.
The agreement will also include the type of case and content explaining the obligation of the borrower if he or she wins their case. When a person applies for a legal advance the attorney may be concerned they will be second in line to the lender. In the agreement it should state that the attorney will be first in line, followed by possible liens and then the lender. This assures the attorney that a legal advance company will receive their payment only after the attorney has been paid their legal fees.
The price of the advance along with a payment schedule outlining the costs should be included in the contract. The rate schedule should outline payments based upon payment dates. For instance the payback amount should be clearly itemized based upon specific dates (monthly, quarterly, bi-yearly, yearly etc.). Most companies will clearly state what the rate is per year.
If you agree to the agreement you will need to initial each page and sign off on the agreement. Your attorney will also be required to sign off on the contract as well. When the contract is received by the lender they may send your advance through a wire transfer, FedEx or UPS, Western Union, mail etc.
Can a company provide a legal advance against a case that is already settled?
If a person has recently settled their claim they may have to wait several weeks before compensation is paid; in some cases longer. This is also true if you were forced into a trial and your attorney successfully litigated your case and a judgment has been awarded. The courts will put a time frame for which the award must be paid. When a person applies for a legal advance against a case that is already settled they are in essence securing post settlement funding. Legal advances against settled cases are less risky and as a result the rates are better.
Can I borrow money for legal fees?
There are some companies that provide plaintiffs legal advances for legal fees. These companies may provide legal advances against complex commercial litigation cases with upsides of tens of millions of dollars in compensation. At LawLeaf we can help clients secure legal advances against commercial cases however there are no companies or hedge funds in the United States that provide advances for legal fees against personal injury cases. If you are trying to secure a legal advance to pay a personal injury attorney, we recommend contacting another attorney.
If I receive a legal advance against my case and I lose, do I have to repay the money?
A legal advance is a non recourse instrument. The only recourse is the compensation in the case. If you were to lose your case, you should never have to pay back the money to the lender. If a company is trying to force you into a recourse loan, we recommend contacting another company. LawLeaf has been providing legal advances for years and we have never seen a recourse contract.
Is this lending available to all plaintiffs?
If you are over the age of 18 years old and you have a pending personal injury case, you may be successful in receiving a legal advance against your case. This product is only provided to the plaintiff or claimant in the case. This type of lending is not available to the defense.
If I just filed an injury claim for my accident, will I be approved for a legal advance?
There is no company that can guarantee an approval. When a person applies for a legal advance the company is likely to request documentation on the case. They must first establish that you have a good case before they would be willing to provide you money against your suit. A company may also request a conversation with your lawyer. LawLeaf can work with any client regardless of when the injury claim was filed. If you have recently filed a claim, negotiating a settlement, going into litigation, or have recently received a verdict or settlement on your case, apply with LawLeaf.
What is the quickest way to get approved?
We recommend applying online. When we receive your information we will have a representative contact you immediately. We also recommend informing your attorney that you are applying for a legal advance against your case. Let your attorney know that a company will be contacting him or her for documentation. We can also request your documents from a paralegal or secretary within the firm. By preparing your attorney ahead of time they will be expecting a call from one of our representatives. This can greatly minimize the amount of time you have to wait for an approval.
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If you are interested in receiving a legal advance against your case, contact LawLeaf today. We provide services throughout the United States: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming and the District of Columbia D.C.
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