Clients who have been injured as a result of an accident or medical malpractice may face financial difficulties while pursuing their case. They may be unable to work and have medical bills and other expenses to pay. In some cases, law firms may be willing to provide financial assistance to their clients in the form of a loan. In this article, we will discuss whether a law firm can loan money to a client while pursuing their case.
Can a Law Firm Loan Money to a Client While Pursuing Their Case?
In Texas, lawyers are allowed to provide loans or advances to clients to cover expenses related to their case, such as medical bills and other costs.
It is important to note that these loans are subject to certain limitations and requirements. In Texas, lawyers who provide loans or advances to clients must comply with the rules of the Texas Disciplinary Rules of Professional Conduct, and the loans must be reasonable and necessary. The lawyer must also provide the client with a written agreement that discloses the terms of the loan, including the interest rate and any fees.
Benefits of Law Firm Loans to Clients:
Law firm loans can provide several benefits to clients who are pursuing a personal injury claim. By providing financial assistance, the client can focus on their recovery and their case, without the stress and worry of financial difficulties. Loans can also help to level the playing field between the injured party and the insurance companies or defendants who may have significant financial resources.
In summary, while the Model Rules of Professional Conduct prohibit attorneys from providing financial assistance to clients in connection with pending or contemplated litigation, some states, including Texas, allow lawyers to provide loans or advances to clients to cover expenses related to their case. These loans must comply with certain limitations and requirements, and lawyers must ensure that they are acting in their clients' best interests. Ryan Pigg can assist clients with pursuing their case and exploring options for financial assistance, including law firm loans.
