Frequently
Asked Questions
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Pre-Settlement Legal
Funding
Why not
borrow from a
bank?
Always
consider the bank first. However, most banks cannot give any
monetary value to your contingent fee cases for borrowing
purposes under federal and state laws. However, to the extent
that you or your firm has a current bank line, LawFin can also
augment that loan or pay it off, thereby releasing
your collateral to you!
How much can
I borrow?
The law
firm's borrowing power is based upon an estimate of the total
value of your case portfolio - whether contingent or otherwise,
as determined by you and our experienced underwriters. Banks
won't and can't loan your law firm the amount of money it
needs. We do.
What expenses
can I pay?
You may
utilize the proceeds for ANY business related purpose,
including case expense, experts, advertising, payroll, general
office expenses, retirement plan funding or to relieve everyday
cash flow problems. It's working capital for your law
firm.
How long does
it take?
Applying
for attorney loans at LawFin is quick and
easy:
1. Fill out
a short application (which can be done conveniently
online).
2. Send Lawfin certain documents as
requested.
3. Funding can occur as soon as five business days
thereafter.
What are the
terms of the
loan?
We offer
flexible repayment terms and interest-only payments for the
first two years. Generally, principal payments are then
amortized equally over the following two
years.
Are monthly
payments tax deductible?
Yes, all
monthly interest payments made to LawFin are tax deductible as
"ordinary and necessary" business expenses, which will save you
and your law firm money. You receive no tax benefits when you
finance your own cases - unless you lose! In addition, interest
on loans for client expenses can usually be charged to the
client (check your local state ethics rules or call us to
receive a copy of the opinion in your
jurisdiction).
Is LawFin in any
way associated with our legal
cases?
ABSOLUTELY
NOT. LawFin is not involved with your clients or legal cases.
We have a working relationship with the law firm as any lender
would. You, of course, remain in complete control of your
entire portfolio.
How
do I know if I need pre-settlement lawsuit
funding?
You need lawsuit funding when you have
exhausted ALL other possible options and have nowhere
else to turn.
Are there any application
fees?
No. We are happy to review your case
and tell you the amount of investment we would make.
There is no obligation on your part until you decide to
accept our
proposal.
What does it mean
to “invest in a lawsuit”?
LawFin literally buys a piece of
the future settlement proceeds of your lawsuit. We give you
cash today in exchange for a specific amount of any settlement
or judgment that is
derived from the litigation. If the case is lost you owe us
nothing and keep our initial advance. This is known as a
non-recourse advance.
Why can’t my attorney lend me
money?
The American Bar Association prohibits
attorneys from lending money to clients for anything but case
expenses. This prohibition exists to prevent any conflicts
of interest from arising.
What
role will LawFin play in the management of my
case?
LawFin will play no role in the case strategy of your case.
That is left to you and your attorney.
Does
your company provide legal
advice?
NO.
What happens if I lose my
case?
You owe us absolutely nothing. We risked our
funds on your case and we lost.
Does
my Attorney have to be involved in the
process?
Yes. The cooperation of your Attorney is a
MUST.
How
long does it
take?
From the time we have all the information we need from the
clients’ attorney, we will have a decision within 48
hours.
What
are your interest rates or
fees?
Our fees vary and are determined
on a case-by-case basis because no two cases are identical.
Your repayment amount will be provided and thoroughly explained
to you and your attorney, prior to your signing and accepting
this agreement. We strongly suggest speaking to your attorney
to review this legal document.
Are there any Additional Fees, such as
Monthly Fees,
involved?
NO! There will be a specific
repayment amount, due and payable
only after the
case resolves itself successfully.
If I am approved,
how do I get the lawsuit
funding?
We will fax your Agreements to your
Attorney’s office for signing and execution. Once we
receive the completed Agreements back we will send your
check immediately. We utilize Federal Express Standard
Overnight Delivery, to ensure a safe and efficient
transaction.
What,
if anything, will LawFin require from the attorney after the
deal is
closed?
LawFin will periodically call your attorney to update us on the
status of your case.
If my case has settled, and I am just waiting for my check, can
you help me?
No. Our pre-settlement advances are designed specifically for
cases PRIOR to settlement.
Why is this NOT A
LOAN?
Loans are repayable absolutely. We purchase
an interest, which is 100% contingent upon the future outcome
of the case.
Do you fund cases that are currently on
appeal?
We will be more than happy to review cases on
appeal and fund those cases, should they be
approved.
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