I am sure you can guess why many of our severely injured personal injury victims tend to fall behind in their bills. Hint: They can’t work! And while their debts piles up, their personal injury claim may not settle or get to trial for many months to come. Solution? They can just get a loan from us, their lawyers, right? Wrong! As lawyers we are prohibited from lending our own clients money — it’s considered a conflict of interest. Our hands are tied! So what do we do?
We do everything in our power to keep them afloat, except lend them our money. And we have many tools to get the job done: We can help them apply for New York State disability insurance and social security disability. We can help them get loans from family or friends by making a legal promise to those lenders to pay them off first – even before we pay our client – from any settlement or judgment we obtain. If our clients need more economic help still, we can refer them to a commercial claim lender who will provide cash in exchange for a “lien” against the personal injury case. The “lien” entitles the lender to be paid first from the personal injury settlement or judgment, plus interest.
And if all else fails, there’s bankruptcy. But we do everything we can to keep our clients from filing for bankruptcy. That’s a last resort. Why? After all, bankruptcy wipes clean most or all the client’s debts, giving our client a “fresh start”. What’s wrong with that?