Misinformed Attorneys, we do NOT take half of your clients settlement!

June 2, 2008

Because I deal in so many lawsuit cash advance deals weekly, I run into periodically a plaintiff who is needing a settlement advance but their attorney will not cooperate. It happened last week! The attorney usually uses three arguements: “It is against the BAR” or “We just don’t do it” or “They will take half of your settlement”.

I want to adress this objection directly of taking half of the settlement. Here is the break down on a payback for a lawsuit advance through my office:

My presettlement funding sources will only advance up to 10% of the case net proceeds. If a client were to get advanced the full 10% and the case drug on for four years then the most the client would pay back was 4x the cash advance. That equals 40%. That is close to half but not half and only in the instance that the personal injury lawsuit took 4 years to settle after the money was advanced.

Attorneys, your 40% is safe. It is not touched and always considered first when it is time to pay back the lawsuit advance. The current average time it takes for a lawsuit cash advance to be paid back is between 1.5 and 2 years.

“What if the client leaves the closing table with a dollar?” I will discuss this in the next blog. Make it a great week!!

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Posted by Rob Thomas | Filed Under Blog, cash advance, lawsuit advance, lawsuit cash advance 

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