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Can i get a loan on a workmans comp case?

Beaufort, SC |

My lawyer states its against ethics....but my checks don't come on time ever, I'm living on 320 a week with a family of 5 and am loosing my housing again (4th time) because of this.

Attorney Answers 7

Posted

I believe your lawyer is correct. It is unethical for an attorney to loan money against a workers compensation case. He cannot do it so dont ask.

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Posted

Others in sc have gotten loans on w.c...and other lawyers say its not unethical.

Posted

Correct. You attorney cannot lend you money. If you on your own take a loan then that is up to you. There are legal finance companies like Palmetto Advance.

The information in the post is not intended to be legal advice but is general information and should not be relied upon. The information provided by this is general advice, and is not legal advice. Viewing this information is not intended to create, and does not constitute, an attorney-client relationship. If you require assistance then you should speak to a competent attorney in the area of your question. If you require additional information from the Ryan Montgomery Attorney at Law, LLC then please visit on the web www.RyanMontgomeryLaw.com or call us directly at (800) 519-0297

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Posted

I think you mean that your Attorney will not loan you money. I do not blame him. I would strongly recommend against borrowing money while on WC indemnity, because if you have trouble on your bare benefits, interest charges are going to put you further under. You should talk to your Attorney about potentially settling your case, or quite possibly returning to work if you are able. I say that because I am unaware of any reputable institution that will loan money on a WC case, and a Loan Shark is most likely not going to be of any long-term benefit.

We offer general concepts, but you should give ALL your facts to a licensed Attorney in your state before you RELY upon any legal advice.

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Posted

I'm not talking about borrowing from my lawyer...I'm talking about getting a loan from one of the companies that do loans for w.c cases...other lawyers have said they'd do it for me.... as of next week my familys gonna be homeless again b/c the insurance comp. Sends checks whenever they want and my lawyers doesn't seem tobe fighting for me.

Posted

Your weekly workers' comp check should be about equal to your pre-injury after tax pay if the comp check was calculated correctly. You and your lawyer need to make certain that your benefits have been calculated correctly.

This answer is intended as general information and not as specific legal advice. If you want to have a free consultation with me, please contact me through AVVO.

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Posted

I agree with your attorney. I know how stressful it can be trying to survive on workers' compensation benefits. However, I think your attorney's hands are tied. First, he absolutely is prohibited from loaning you money in South Carolina based on our ethical rules. There are a few states where such loans are allowed but South Carolina is not one of them. Second, there are also issues related to the traditional loan companies. First, the interest rates charged by these companies always makes the loans a bad idea financially. However, there is also a provision in our workers' comp statute which prevents liens from being placed on workers' compensation cases in South Carolina. A few years ago, this issue caught the attention of our Office of Disciplinary Counsel. Based on input from their office, our firm has refused to sign any documents agreeing to protect the loan company's interests on a workers' comp case. Generally, they will not provide a loan without the attorney's guarantee. If you find one which will loan you money without your lawyer's involvement, that's between you and the company. If there's any way you could loan the money from a friend or family member, that would be preferable. I'm sorry your family and you are going through such a tough time but I believe your attorney's advice is sound.

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Ryan S Montgomery

Ryan S Montgomery

Posted

Kenny by chance do you know that case cite? Was looking for it to "prove" to a client why I couldn't sign the papers

Kenneth W Harrell

Kenneth W Harrell

Posted

Ryan, at my daughter's horse show but I'll dig it up for you on Monday - Kenny

Larry Alan Apfelbaum

Larry Alan Apfelbaum

Posted

Having the same issue in Illinois. Even called ARDC, WC Commission, Atty Gen. and Dept of Ins to get official ruling that these loans violate anti-lien provision but not one agency would provide answer. Absolutely crazy to have law that say no liens or assignment but enforcement powers look the other way on law suit loans.

Posted

From answers below, it sounds like SC law is like Illinois. The law says no liens or assignments of benefits but some lawyers ignore the law. As indicated below, I have sought official opinion from 4-5 government agencies and none will say....so its up to each lawyer to decide what to sign off on these loans or not. Of course its not a problem until a client demands lawyer not pay off the loan and then the lawyer is sued on the loan for violating the 'protection' agreement. Kind of wish that would happen soon so the rules are clarified because i am tired of losing clients to lawyers that cannot read the law. No liens = no liens. I do not see ambiguity in the words!

I am licensed to practice law only in Illinois. Any advice that I render is for general information purposes and does not create an attorney-client relationship. Also it is very important to keep in mind that all legal claims have statues of limitation to file that cannot be missed. A local attorney should be consulted to learn the time limits applicable to a particular claim.

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Kenneth W Harrell

Kenneth W Harrell

Posted

Larry, if it's any consolation, we used to frequently coordinate these loans for clients before we quit cold turkey on workers' comp cases because of ethical concerns. We were concerned that we might lose some clients but to date, we haven't had a single client leave (or even protest very much) when we tell them we feel we're ethically restrained from setting them up. I think these case loans are like eating potato chips - you know they're bad for you but they're hard to resist if you have easy access to them. Once the access is removed, you're better off and you don't miss them very much.

Posted

I understand your frustration in this difficult time. Unfortunately, South Carolina law prohibits lawyers from loaning you money. In addition, South Carolina law also prohibits a lien being placed on your file. Thus, your lawyer cannot have money loaned to you while you're waiting on your checks. Maybe, you can have your lawyer call the lawyer representing your employer and ask it to send the checks to you on a more regular basis.

Scott Bluestein

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