Lawsuit lending is a non-recourse loan where a lawsuit funding company extends a line of credit to a Plaintiff until a suit is settled. If the lawsuit is unsuccessful, the Plaintiff does not have to repay the funding company. The loan, in the form of a line of credit, usually stipulates the Plaintiff will have to pay the loan back, plus interest, if the lawsuit is successful.
The practice has been around for a long time but currrently is under ethical scrutiny. Abraham Lincoln once said, “Never stir up litigation. A worse man can scarcely be found than one who does this.”
Lawyers appear to stand the most to gain from stirring up litigation.
In lawsuit lending, ethical matters have always revolved around a Plaintiff’s inability to fund a lawsuit. Assuming a Plaintiff has a legitimate reason for suing and cannot afford a lawsuit, is it ethical to allow him to miss an opportunity for justice because he is poor?
There has always been and always will be a fine line between that which is unethical and that which is accepted by society as ethical. A civilized society must determine, through their court systems, what is ethical.
Each individual has their own ideas about what they think is ethical or right or wrong, but to live in a civilized society the society must make their own decisions. This is the purpose of laws.
So how does a lawyer avoid ethical controversies with their clients? One way is to use an informational approach to their client solicitation. In lawsuit lending, a law firm should be able to inform a client if there are any legal opportunities that would allow the potential client to receive legal justice. As a matter of fact, that is exactly what consulting with an attorney means. It is the duty of every attorney to inform a potential client of any opportunity to find a legal remedy for justice in their particular circumstances.
Clients, once informed, have the best opportunity to make the right decisions for themselves. As a content legal writer, it is the job of the writer to provide information for potential legal clients so they can make informed decisions, not to make the decision for them or solicit their business by telling them what they should do.
Unlike infomercials which try to stir up the emotions of a client to buy a particular product, legal advertising directs readers to information which helps them make informed decisions.
Bankruptcy laws come under the same ethical considerations and it is important, if you are considering bankruptcy, to find a bankruptcy lawyer to answer your questions. A lawyer can provide information what will help you make an informed decision.
If you need relief from the stress of debt and you live in or around the metropolitan areas of Tampa, St. Petersburg, or Clearwater, Florida, contact us at www.betterbankruptcy.com . We will help you find a bankruptcy attorney in your area that who can answer your bankruptcy questions.
Latest posts by admin (see all)
- Free Information Resources for Filing Bankruptcy - August 15, 2013
- When Creditors Change the Rules in Mid Stream - August 13, 2013
- Understanding the Concept of a Claim in Bankruptcy - August 8, 2013