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 resources.