How to Talk to Your Attorney about Lawsuit Funding

May 13, 2010

Taking part in a lawsuit is one of the most stressful events that can occur in someone’s life, especially if money is tight and they are depending on the money from a settlement. If this is the case, a lawsuit goes from stressful to nearly impossible. For those facing great financial hardship as a result of a lawsuit and those who will face greater financial hardship without a lawsuit, legal funding is often the only solution. If you find yourself in this position, it is important to seek the counsel of your lawyer so you can make the best decision for yourself and your case.

How to Talk to Your Attorney about Lawsuit Funding

It can be difficult for us to talk to our attorneys about matters of money; many people feel that they are in a no-man’s land of fees, fees, and more fees with no help in sight. If you are paying your lawyer, you should be paying for all of his advice, including that concerning fees. While you can negotiate fees down or hire a lawyer on a contingency basis, it can still be very expensive. Here are some tips for talking with your attorney about lawsuit funding:
  • Be upfront about your financial situation from the very beginning. It does little good to hide your financial difficulties from your lawyer. If he knows, he may adjust his fee schedule or work on a contingency basis. He may also speak with you about lawsuit funding. It is very likely that you are not his first client to need lawsuit funding assistance. It is difficult, but do make the effort to bring up your financial situation at your first meeting with your attorney. Either he can help or he can’t, and it’s vital to waste no time in finding this out. Most personal injury attorneys will have at least some experience with lawsuit funding. Ask about funding alternatives as well.
  • Ask for your attorney’s assistance in finding a reputable company with which to work for your funding. As with any business, there are great, honest firms, and there are those who do not fully disclose their terms. For this reason, having your lawyer’s guidance is essential so you can choose the former and avoid the latter.
  • Do your own research as well. Sometimes, attorneys may refer you to companies with whom they have worked in the past. This can be beneficial because they know the process, but you should always do some homework on your own to be sure. Google them, look at their website, and see if you can find unbiased third-party information on the firm.
  • You will need your attorney’s assistance in getting lawsuit funding. He will need to provide you case information to the funding company. Make sure you are clear with him about your needs and what you expect from the lawsuit funding company. He should review any and every document that is related to your funding and take the time to explain it fully and to your satisfaction. If he doesn’t, don’t be afraid to ask clarifying questions. Sometimes, lawyers may assume you know what something means. If you don’t, don’t be embarrassed. You’re paying him for his expertise – take advantage of that.
No one wants to participate in a lengthy court case, but if it is necessary, enlist the help of your best ally, your attorney, and make sure you are being represented thoroughly and effectively by him.