Lawsuit Funding – The Need for Attorney Cooperation

12 May, 2021 | Worldhide | No Comments

Lawsuit Funding – The Need for Attorney Cooperation

When a plaintiff obtains a lawsuit cash advance, otherwise known as pre-settlement funding, case loan companies require the signature of the attorney to finalize the transaction.  Attorney participation in the lawsuit funding process is the single most important factor in obtaining cash now for your case. Below is a list of important reasons why legal finance companies require lawyers’ cooperation in connection with a lawsuit loan.


The name of the game in lawsuit funding is speed.  Clients are often at the end of their financial rope when they decide to pursue a lawsuit loan against their case.  The best service is the fastest service.  And the best way to achieve this aim is to gain the confidence and cooperation of the attorney’s office and staff. debt collection statute of limitations

99% of the delays in funding are due to chasing the proper paperwork.  This can be remedied with clear communication of exactly what paperwork  is needed and why.

Of course, attorneys and their staff are very busy people and are not always going to drop everything they are doing to facilitate a lawsuit loan.  Often support staff has to rifle through voluminous files searching for relevant documents.  Through cooperation however, documents are obtained as soon as possible and the funding process runs much smoother.


Lawsuit funding companies are in the business of advancing money for profit.  The real trick is not sending the money out, but getting it back in.

Normally, when the lawsuit settles, the defendant (or the insurance carrier) issues a check to the plaintiff which is deposited into the attorney’s trust account.  From there, the attorney disburses the funds to his own firm, the client and any liens which are outstanding.  A lawsuit loan is such a lien.  Because the attorney ultimately has to pay the cash advance back to the lawsuit funding company, it is generally a good idea to have a cooperative relationship with that individual and his staff.


Unfortunately, we occasionally encounter persons operating from a scarcity mindset who, in an effort to ease their own pain, offer inaccurate information to lawsuit funding outfits.  The vast majority of this misinformation is flushed out by various mechanisms, however, the essence of the problem still remains.  It would be a gross understatement to state lawsuit funding collection efforts would be greatly affected if the investment and return had to be retrieved by the client himself.  Instead, the funding contract almost always requires the proceeds from any settlement or award first be deposited into the attorney’s trust account and then disbursed to the interested parties.  This requirement is implemented industry wide, with few exceptions.

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