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.
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.
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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.
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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.
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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.
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.
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.