Lawyer won't help with cash advance from Loan Company against settlement.

Q. I asked my attorney to help me get a cash advance from a Loan Company against my settlement. He refused. Should I fire him?
 

A. No, you should likely thank him.   Most attorney’s are very reluctant to help a client get a cash advance from a loan company even though it might be helpful to their client. The reason is that these loans are extraordinarily expensive. Interest tends to accrue monthly. It would not be unusual for the payback on a $5000 advance to be $10,000 after one year and even $20,000 after two years. The attorney has little control over when an insurance company will agree to pay.
 
IF the case is delayed 3 or 4 years, the loan could be truly a disaster to the client.
 
Let’s assume client takes a $2500 loan and the payback to the loan company is $10,000 when the case settles. If the other party’s insurance is only 25,000 and they agree to pay it after two years, after paying off the medical bills, attorney fees, costs and the high  interest on the loan the client will be left with nothing. Do you think the client will be willing to settle at that time for $25,000 if he’s told he will net nothing? Yet, the attorney has gotten the insurance to pay the entire auto insurance policy.
 
The problem is the loan interest ate up the client’s share of the recovery.
 
It’s because of situations like this that in the vast majority of cases, attorney’s will not sign a lien with a Loan company on the client’s behalf.
 
If the client’s injury is truly severe, and this is depriving him of the necessities of living, an experienced personal injury attorney will try to help the client provide for his family using other sources.
Client Reviews
  • Me and my wife; had a car accident. We were amazed how easy, professional, friendly attorney Ed Smith is along with his staff. Everybody is amazing. Thank you so much, we are very impressed!
    Sincerely, Alex & Dinah M. ★★★★★
  • Ed Smith and his office team took on a difficult personal injury case on my behalf and for the passenger in my car. Ed is a top- notch attorney. His staff couldn't have been more helpful and kind. No need to look elsewhere. I give Ed Smith my highest recommendation. Beverly ★★★★★
  • Ed and Robert have been taking great care of my husband and I for the past 5+ years. They are always there when you have a problem and a quick resolution! Even when the issues have nothing to do with them. They are willing to help ease the pain off your shoulders. They are as good as it gets! Thank you again for everything. Annie T. ★★★★★
  • Very professional. Great team, staff and service all around. Mr Smith was very honest, straight forward with his advice. He gives the word "attorney" an honest reputation. I will seek his council anytime, and would recommend him at the drop of a dime. Jeremy M. ★★★★★
  • I would highly recommend Ed Smith to any friends or family in need of a personal injury attorney. Ed, and his staff, are very caring on top of being very experienced in this field. The staff always keeps you informed of the status of your case and they are always easy to reach by phone. Shannon D. ★★★★★
  • Edward Smith law offices provide competent, thorough, and personable help for victims of personal injury. When you first meet the staff you know you contacted the right office. This law office treats clients like people. I recommend this office to anyone seeking representation regarding personal injury. David M. ★★★★★