North Carolina Legal Financing Companies; Are They Worth It?

Posted by Christopher Shumate | Dec 17, 2012 | 0 Comments

Legal financing companies have become more readily known in recent years. Legal financing companies advance a Plaintiff with a pending personal injury claim money in exchange for a portion of the settlement proceeds. The legal financing companies indicate they provide such funds, allowing a Plaintiff with financial difficulties to eventually accept the best settlement offer rather than being forced to accept a lower offer due to financial constraints. The legal financing companies also note they advance such funds at no cost to the Plaintiff should he / she not prevail in the matter.

At first blush, these financial companies seem to be a good idea for Plaintiffs who need money while their lawsuit is pending. However, many Plaintiffs fail to realize the actual costs they are paying for the advances. The interest rates charged by these companies are quite high; there is simply no way to ignore such. A prospective borrower must also consider that a case could continue for a significant period, allowing the high interest to accrue for such a period. As a result, a borrower could owe a significant amount. The amount could equal the entire recovery in a case, or more. As a Charlotte personal injury lawyer, I have always advised clients against taking such loans on personal injury cases. Based upon my experience, this approach has been a bad idea for clients. I take my client's financial difficulties quite seriously. However, I strive to provide my clients sound advice regarding their cases, including the peripheral matters that arise regarding such. As a Charlotte workers' compensation attorney, I have always advised my clients that the law prohibits assigning the potential proceeds of their workers' compensation case. Thus, such a legal loan is illegal.

About the Author

Christopher Shumate

Mr. Chris Shumate is a native of Gastonia, North Carolina, and worked various jobs while pursuing his undergraduate and Juris Doctor education, including several heavy manual labor and skilled trade positions. In his practice, Mr. Shumate often encounters circumstances where these prior experiences are helpful in representing you. Upon graduating law school from the University of South Carolina, Mr. Shumate joined one of the Carolinas' larger defense firms, where he represented a diverse set of employers and insurance companies in civil cases and workers' compensation claims across the Carolinas. Chris utilized this experience to obtain a working knowledge of the insurance industry, and build personal contacts used today in representing you. Mr. Shumate ultimately decided he wanted to focus his law practice on assisting those who have been injured, and doing so with the focus on a personal relationship that is uncommon in the bigger firms. Mr. Shumate's also has a passion for assisting those facing the challenges of the criminal legal system. By representing individuals in a variety of criminal and traffic matters, Mr. Shumate works to achieve the best possible result for each client regardless of the charges levied by the prosecution. Chris has tirelessly pursued his mission of helping people from all walks of life throughout the Carolinas with a variety of legal matters. If you are interested in learning more about Chris Shumate and The Shumate Law Offices, please contact us at 704.371.5059. We look forward to assisting you to achieve a positive result in your legal concern. Education J.D., University of South Carolina B.S., University of South Carolina Jurisdictions Admitted to Practice N.C. State BarS.C. State BarU.S. District Court Western District of North Carolina Professional & Bar Association Memberships N.C. Bar Association S.C. Bar Association Mecklenburg County Bar N.C. Academy Of Trial Lawyers American Association For Justice


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