No, attorneys cannot provide pre-settlement funding for your pending lawsuit. They are required to act in their client’s best interests without being influenced by financial considerations. Providing funding directly could create a financial stake for the attorney in the outcome of the case, potentially compromising their objectivity. However, pre-settlement lawsuit funding from Mustang Funding helps plaintiffs level the economic playing field against deep-pocketed defendants and insurance companies who often prolong the legal process.
Why Can’t Attorneys Provide Pre-Settlement Funding?
The core reason attorneys cannot offer pre-settlement funding stems from ethical guidelines outlined in the American Bar Association (ABA) Model Rules of Professional Conduct. It generally prohibits lawyers from providing financial assistance to clients in litigation, except in specific circumstances, e.g., advancing court costs or litigation expenses to be repaid upon settlement or judgment.
Offering loans could create a conflict of interest, potentially clouding their legal judgment or undermining their focus on your case. Their sole responsibility is to represent your best interests in the legal process. Further, allowing attorneys to fund clients could lead to exploitative practices where clients might feel pressured to accept unfavorable settlement terms to repay the funding provided by their lawyer.
Keeping financial transactions separate from legal representation helps maintain the integrity of the attorney-client relationship, ensuring that advice and decisions are based solely on the merits of the case.
Third-party funding companies typically offer pre-settlement litigation funding to avoid entangling legal representation with financial arrangements. This ensures compliance with ethical standards while still providing clients with access to necessary funding.
What Is Pre-Settlement Funding?
Pre-settlement lawsuit funding is a valuable resource for plaintiffs waiting for a verdict or settlement. It can take months or even years for a plaintiff to receive compensation. A lawsuit advance gives you some breathing room to negotiate a higher settlement, so you don’t feel the urgency to settle quickly just to keep up with the bills.
It is not a loan as it is non-recourse, meaning you don’t have to pay it back if your case doesn’t settle in your favor. Essentially, we buy a portion of your future court award or settlement to be paid when your case concludes. The rate and other fees associated with your advance can vary based on the strength of your case.
This funding can be a crucial resource when you need help covering medical bills, mortgage or car payments, your children’s tuition, or even Christmas presents while you wait for your case to be resolved.
Why Choose Mustang Pre-Settlement Funding?
As a leading lawsuit lender, Mustang Litigation Lending is committed to helping individuals, groups, and legal firms make safe and informed choices. There are several benefits to pre-settlement funding for individuals awaiting the outcome of legal proceedings.
- Does not affect your credit in any way: Good credit is not a requirement for pre-settlement funding, and applying for a lawsuit advance will not impact your credit.
- Does not require an employment check: We approve applications solely based on the strength of your legal claim, not your job history.
- Is risk-free even if you lose your case: As noted, if you don’t get a court award or settlement, you don’t have to pay anything back. That is why we refer to pre-settlement funding as non-recourse financing. We absorb all the risk.
- Does not require monthly payments: Unlike credit cards and personal loans, litigation advances do not have monthly payments. Instead, these funds are only repaid once your case is completed.
- Offers fast cash payments: Cash transfers for qualifying cases can be made anywhere from 24-48 hours after your application is approved
Contact Mustang Funding Today to Learn More
Mustang Funding is a litigation finance company focused on high-quality, transparent capital solutions for law firms and their clients. Our ultimate guide to pre-settlement funding provides essential information on how pre-settlement funding works. If you have questions, do not hesitate to contact us. We’re happy to help.
About Mustang Funding
Mustang Funding, founded in 2018 and based in Wayzata, MN, is a litigation finance company dedicated to empowering individuals and law firms nationwide with transparent and innovative financial solutions. With over $170 million funded, 10,000+ checks issued, and more than 3,000 cases financed, Mustang provides plaintiff pre-settlement funding, law firm financing, and commercial funding to meet diverse client needs. Their commitment to transparency, integrity, and expertise sets them apart, offering tailored financial support to plaintiffs, businesses, and legal professionals. By bridging capital gaps and fostering access to justice, Mustang Funding continues to lead the legal asset investment industry with a strategic, inclusive, and forward-thinking approach.
