Workers’ Compensation Attorney Loans Not Allowed

Workers’ Compensation Attorney Loans – Not Allowed

I get calls from potential clients asking about workers’ compensation attorney loans for their settlements.  It is illegal for any Georgia workers’ compensation attorney to loan money to a client for a future settlement.  It is explicitly outlined in Georgia State Board of Workers’ Compensation Board Rule in Rule 15K where it states that no party or any party’s attorney shall enter into a loan or assignment with a third‑party creditor which requires repayment from the proceeds of a workers’ compensation claim.  Very often, clients are in a difficult financial position.   However, you may see a commercial or hear about something from a friend regarding settlement advances or loans.  This may seem like a great idea since they are offering to you money right away.  The activity is called a Advanced Settlement Funding, and some law firms are allowed to leverage this service, but workers’ compensation claimants are not allowed to receive these loans.  It is further outlined in the rule book under Rule 84.

Workers' Compensation Rules

Rule 84 

No party to a claim or any party’s attorney shall assist, secure, create, or execute any loan or assignment with a third party creditor which requires repayment out of any recovery, settlement, or payment of benefits from any claim filed under this chapter.”  [Source: Georgia State Board of Workers’ Compensation Board Rules]

 

Georgia Workers’ Compensation Attorney You Can Trust

Gearhart Law Group will not sign loan papers. We think you should know this up front. While we are extremely sympathetic to the plight of the injured worker, there is an explicit board rule prohibiting this practice. Many people disagree and think that this is not enforceable, however, even if it was enforceable, settlement loans come with their own risk.

Settlement Loan Risks

Workers’ compensation attorney loans have many risks.  First, settlement loans create a conflict of interest between the lawyer, client, and the funding company.  Second, the fees are very high, so you could end up owing more than you receive once the interest is factored into the equation.  In many cases, claimants see the interest accruing and opt to resolve their claim more quickly than it should be settled. Finally, any lack of payment will create further litigation between the attorney and the injured worker.  This creates the ultimate conflict between a client and attorney.

In summary, settlement advances from outside companies arrive with pitfalls. While it’s frustrating, we simply cannot guarantee those loans for anyone at Gearhart Law Group.  Furthermore, we would strongly advise against using any attorney who is offering to broker an agreement with a loan settlement funding company.

 

Georgia Workers’ Compensation Tips

Read this page on What to Know About Workers’ Compensation Attorney Settlements 

Read this post on How to Value Your Claim  

Read this page on Top 10 Injured Workers Mistakes 

Read this page on Top 10 Insurance Adjuster Tactics

 

Georgia Workers’ Compensation Attorney

Beth Gearhart is an ethical and trustworthy Georgia workers’ compensation attorney.  She will fight for your rights and maximize your case settlement value.  When researching workers’ compensation attorneys in Atlanta or the state of Georgia, please focus on attorney Google Reviews.  Only trust your workers’ compensation settlement with the most trustworthy and honest attorney.  Call Beth Gearhart at (404) 445-8370 to learn your options today!

Beth Gearhart is a workers' compensation attorney representing injured workers in Georgia. Gearhart Law Group is a law firm focused entirely on workers' compensation based in Atlanta, GA. Beth Gearhart is a work comp lawyer who represents her clients' needs, and she is often considered one of Georgia's best workers' compensation lawyers. Beth is unique in Georgia work comp because she represented insurance companies for over a decade to learn their practices before switching sides to help fight for the rights of injured workers. Beth is also different because she listens to her clients and truly cares about their cases. If you need a Georgia work comp lawyer, contact Beth Gearhart at Gearhart Law Group.