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FAQ's |
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Is it ethical for an attorney to refer his or her client to a non-recourse funding company such as LawFunds®?
Absolutely. However, there are pitfalls for the unwary, which is why it is important to work with a company that understands the intricacies of current ethical rules. LawFunds® is attorney owned and operated and our application and underwriting processes, along with our transactional documents, are all designed to ensure attorney compliance with all ethical requirements. For a more detailed discussion on this topic, see Ethics.
Are there any up-front costs or fees?
No. LawFunds® does not charge application fees or closing costs.
What are your rates?
LawFunds® does not loan money, rather, we purchase discounted partial assignments of proceeds. As such, there is no interest rate or set fee that applies to all transactions. Instead, the purchase price and discount for each application is based on the particular risks associated with the case being considered. We do have general pricing guidelines for "standard" risk personal injury fundings and settlement fundings, which can be obtained by speaking with one of our Funding Specialists.
Is the plaintiff personally liable for payment?
No. The plaintiff is selling a portion of his or her future recovery. If the case is unsuccessful, LawFunds® receives NOTHING. If the recovery is insufficient to fully satisfy the assignment, the deficiency is forgiven.
What is LawFunds®' involvement in the case once it has purchased an assignment?
LawFunds® only purchases an assignment of future proceeds, not an assignment of any cause of action. As such, our involvement in the case is limited to monitoring its progress and asking for periodic status reports from counsel. Funding approval represents our confidence in plaintiff's counsel and, therefore, we never share our opinions or evaluations of factual or legal issues unless counsel requests the same.
Does payment on a LawFunds® assignment affect the attorneys' ability to collect fees and costs?
No. Attorneys' fees, whether hourly or contingent, as well as any expenses or case costs advanced by the attorney, always have priority over LawFunds®' right to payment of its assignment.
What information does LawFunds® need to review a case for funding?
The first step to apply for funding is to complete the appropriate application and to supply the information and documentation requested therein. In addition, we generally recommend that you provide us with any information that is material to liability and damages. Ask yourself what you would like to know about this case if you were using it as collateral for a cash advance, and send any and all information that comes to mind.
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