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Talk About Leaving Things To The Last Minute via Funny & True Stories @ NotAlwaysRight.com

Client: “If I get documents to you by the end of the day, can you still file them with the court today?”

via Talk About Leaving Things To The Last Minute — Funny & True Stories | NotAlwaysRight.com

This is the Best time to start a Legal Financing Company via PNN

Investors and consumers are already taking notice of the benefits of legal financing, and as the number of civil cases continues to rise, so too will demand for lawsuit loans.

If you haven’t heard about legal financing or lawsuit loans before, that may change. The practice of legal financing dates back to the early 1990s, but it didn’t take off in the United States until Credit Suisse Securities launched a litigation lending program in 2006 that later became its own company in 2012.

Legal financing, often referred to as a lawsuit loan, is a cash advance that a lender gives to someone in exchange for a portion of their potential settlement or judgment in a lawsuit. In short, legal finance lenders bet on lawsuits that they think will win.

While lawsuit loans are a risky investment, the industry is full of successful startups with millions of dollars in available funding. Since legal financing grew nearly 400% between 2013 and 2017, this may be the perfect time to consider the potential of starting a legal financing company.

How Lawsuit Loans Work.

Lawsuit loans are an immediate cash payment to plaintiffs in exchange for a portion of their compensation when they settle or win their case. Basically, legal financing lenders purchase a portion of the settlement. In addition, lenders charge interest on top of the amount of money borrowed due to the high risk of their investment.

However, unlike traditional loans, lawsuit loans don’t require a credit check, income verification, or employment history. Lenders only approve funding based on the strength of the case, so if a plaintiff has a strong case that is 6-12 months away from a settlement, they are more likely to receive a loan, as described on pre settlement loan websites such as Nova Legal Funding and others.

In addition, lawsuit loans are non-recourse, so the plaintiff doesn’t have to pay back the money they borrowed if they lose the case. The lender accepts the entirety of that risk.

Factors Contributing to the Growth of the Legal Financing Industry.

There are several reasons why legal financing continues to grow throughout the United States. A combination of lax regulations and an increase in personal injury cases contributes significantly to the industry’s growth and shows no signs of slowing down.

According to the New Yorker, the legal financing industry had more than $3 billion in assets in 2016. Another report by Burford Capital found that the number of lawyers in the United States who helped a client apply for a lawsuit loan quadrupled between 2013 and 2015, from 7% to 28%. While competition is hot, it’s clear that legal financing is increasing in demand.

Lack of Regulation.

Since legal financing is considered an investment or payment, it does not have the same federal and state regulations as traditional lending. In fact, most states don’t have any rules regarding legal funding since financing is non-recourse. This makes it easy for entrepreneurs to start legal financing businesses and obtain investors.

However, a few states have new regulations for lawsuit loans in place. For example, the state of Colorado settled a lawsuit in 2015 with a lender after the state’s Supreme Court determined that legal financing was subject to Colorado’s Uniform Consumer Credit Code and that the amount of interest charged is predatory under Colorado lending laws.

More People are Filing Personal Injury Lawsuits.

While the number of civil cases filed in district courts continues to increase, personal injury claims have grown the most.

According to an annual report from US Courts, the total number of personal injury lawsuits filed in a district court almost doubled between 1990 and 2019. In addition, the number of personal injury claims filed between 2018 and 2019 alone increased by more than 20%. In 2019, personal injury claims made up nearly one-third of all civil cases in the US. Most personal injury cases involved motor vehicle accidents, medical malpractice, defective pharmaceuticals, and marine injuries.

Lawsuit Loans Have a High Rate of Return if Successful.

Most lenders have interest rates ranging from 3-4% monthly, or 36-60% annually. Since lawsuits often take months or years to settle or receive a judgment, the rate of return for lenders is high. For example, if a lender allows a plaintiff to borrow $10,000 at an interest rate of 36% compounded monthly and the case settles in 6 months, the lender receives $10,000 plus an additional $1,800 in interest.

Lenders are Forming Trade Groups to Establish Ethical Guidelines.

Since there are so many legal financing companies operating and few federal regulations, some of the industry’s leading lenders decided to start a trade group called the American Legal Finance Association, or ALFA. With more than 30 members, ALFA provides 90% of all legal financing in the United States.

Members of the organization have their own code of conduct with protections in place for consumers, including restrictions on overfunding, false advertising, and referral commissions. ALFA also supports new consumer protection regulations for the industry and highlights third-party research about legal financing.

Personal Injury Lawsuits Have a High Value.

Since legal financing lenders need the strongest cases possible to make the risk worth their time, they typically fund personal injury cases where negligence plays a significant role.

According to a survey conducted by Nolo, around 70% of personal injury plaintiffs receive a settlement or judgment. Out of all of the plaintiffs surveyed, half received a settlement or judgment worth $10,001 to more than $75,000. Most importantly, plaintiffs who retained a lawyer were more likely to win their case and received more than $75,000 on average. Plaintiffs without a lawyer received almost 80% less compensation as well.

This is the reason why most legal financing lenders require applicants to have a lawyer representing their case. Not only does it significantly reduce the risk of lending, but it also means a potentially higher return.

This is the Best Time to Consider a Legal Financing Startup.

Based on the increased popularity of lawsuit loans, lack of regulations, and high return on lawsuit investments, this is the best time to start a legal financing company. Investors and consumers are already taking notice of the benefits of legal financing, and as the number of civil cases continues to rise, so too will demand for lawsuit loans.

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[ad_1] If you haven’t heard about legal financing or lawsuit loans before, that may change. The practice of legal financing dates back to the early 1990s, but it didn’t take off in the United States until Credit Suiss Securities launched a litigation lending program in 2006 that later became its own company in 2012. Legal […]

via The New Startup: Legal Financing & Lawsuit Loans – Young Upstarts — PNN – Paper News Network

50+ Concordia students join class action suit — KOIN.com

PORTLAND, Ore. (Portland Tribune) — A class action lawsuit has been filed against Concordia University, by students who say they were misled about the university’s financial status and want refunds on their tuition.

On Monday, Feb. 10, the private, nonprofit Christian university in Portland abruptly announced plans to close by the end of the academic year. In a statement and video, university Interim President, Rev. Thomas Ries said the college’s board of regents voted the prior Friday, Feb. 7 to cease operations at the end of the spring 2020 semester.

A statement released by the university cited “years of mounting financial challenges, and a challenging and changing educational landscape.” In a lawsuit filed by attorney Michael Fuller, students say those years of financial challenges were not disclosed by the university to students, who applied and paid tuition fees to the college expecting to complete their degrees there.

“Concordia University misled hundreds of students about its financial condition, and collected tuition in 2020 that students would not have paid had the students known the truth about Concordia University’s looming closure,” the complaint states.

Concordia Athletics. February 10, 2020 (KOIN)

The university indicated it has more than 6,000 current students.

Fuller said the university likely knew it was in financial trouble, but continued to recruit students both at its Portland campus and through its online degree programs, who likely had no chance of ever earning a degree there.

“A university can choose not to disclose its financial information to its students, but if it turns out the students were misled, then they have a case,” Fuller said, likening the situation to “selling someone a lifetime supply to a gym when you know it’s going to close tomorrow.”

The Portland Tribune is a KOIN 6 News media partner

The attorney said he was contacted by Concordia students the day of the announcement, and now has more than 50 students joining the lawsuit.

Many of those students have been in this situation before.

In 2018, another private Oregon university- Marylhurst University, shuttered. Fuller helped Marylhurst students file a class action lawsuit against the school, which was eventually settled for undisclosed amounts.

Many of Marylhurst’s former students turned to Concordia when they needed to transfer to a new school, Fuller noted.

“Within an hour or two (of the announcement) I had been contacted by three or four of my former clients,” Fuller said of former Marylhurst students who are now finding themselves caught in the middle of another private college shut down fiasco.

Marylhurst university_1526589088327.jpg.jpg
Marylhurst University (KOIN, file)

“A lot of them have maxed out their financial aid and taken out private loans to pay for school,” he said.

The lawsuit alleges Concordia misrepresented its services by omission, leaving students to pay for college credits that may not transfer to other universities, and without the ability to graduate. Concordia even touted a long-range plan that said, “by 2024, ‘all students of Concordia University-Portland will be actively engaged in a university that enjoys a strong national reputation in select programs preparing leaders for the transformation of society through educational experiences grounded in relationships and centered in servant leadership, rigor, and Lutheran identity and values.’”

Fuller said universities typically have insurance policies that cover legal issues like this, but noted, “if (Concordia) promises to give tuition refunds to every single one of the students, I’ll dismiss the case and cover my own costs.”

The university has yet to respond to the legal complaint and has not responded to requests for comment on other financial matters surrounding its nonprofit foundation.

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The attorney said he was contacted by Concordia students the day of the announcement, and now has more than 50 students joining the lawsuit.

via 50+ Concordia students join class action suit — KOIN.com

Keep your Affairs out of Court: Put your Property in the Name of the Trust

AKA: Avoiding probate, (How to fund the trust): If You Have a Revocable Living Trust, congratulations. Thats just the first step… DONT FORGET TO TRANSFER ALL ASSETS TO THE NAME OF THE TRUST.

There’s a big estate planning problem out there. The titling process is getting neglected causing families to go through probate.

However, when the assets are put in the name of the revocable living trust, the estate settlement is a beautiful thing. But your living trust is only as effective as the assets that you title into it. (https://www.legalzoom.com/articles/revocable-vs-irrevocable-living-trusts-which-one-is-right-for-you)

Many fully funded trusts are settled without court involvement if your put all assets and property in the name of the trust.

There are a few reasons that trusts don’t get funded. People forget they owned that piece of property. People thought they had beneficiaries on all accounts. People didn’t think about buying the new property in the name of their trust. People didn’t think about opening that new account in the name of their trust. People may not have known that they needed to transfer their LLC to their trust. They kept a minimal amount of shares out of the trust. They thought their attorney was going to handle getting everything in the trust, but an attorney can only transfer certain assets into your trust.

Do these three things:

(1)  If you are an estate planning attorney, share with your clients along with a note to contact you if they need legal help. If you are a financial advisor, share with your clients and prospective clients along with a note to contact you if they need help titling and beneficiary designations.

(2) Fund your trust. While the process isn’t difficult, it’s easy to get sidetracked or procrastinate. Just make funding your trust a priority and keep going until you’re finished. Take a look at everything you have this is titled. Determine whether assets are probate or non probate. Probate assets, in general, go in your trust. There are many excellent attorneys around the country willing to help. If you need a lawyer’s help, get it. While you are at it, update your beneficiary designations.

(3) Write a Comment. if this video can help one person avoid probate and make things easier for their survivors, it’s worth it. Comment with your positive comments and experiences on youtube or linkedin or wherever else you might see or hear this, so that others can and will benefit from your experience.

Now go leave a legacy! Your family will thank you for it.

This post is for informational purposes only and does not provide legal advice. Please do not act or refrain from acting based on anything you read on this site. Using this site or communicating with Rabalais Estate Planning, LLC, through this site does not form an attorney/client relationship.

Paul Rabalais
Louisiana Estate Planning Attorney
http://www.RabalaisEstatePlanning.com
Phone: (225) 329-2450

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Related:

Revocable vs. Irrevocable Living Trusts – Which One is Right for You?

by Michelle Kaminsky, Esq.
Freelance writer
Revocable vs. Irrevocable Living Trusts – Which One is Right for You?
by Michelle Kaminsky, Esq., March 2015
Living trusts can be a great option for distributing your assets after your death. If you’re thinking of creating a trust as part of your estate plan, you’ll want to learn the differences between a revocable living trust and an irrevocable living trust so you can make the best decision as to which one is right for you.
What Is a Living Trust?
Before moving on to the distinctions between revocable and irrevocable trusts, it is important to note that both trusts are an “inter vivos” trust: a living trust so named because you create it while you’re still alive.
A living trust is a written legal document through which your assets are placed into a trust for your benefit during your lifetime and then transferred to designated beneficiaries at your death by your chosen representative, called a “successor trustee.”
To get the most benefit out of a trust, you should make sure everything you own is held in trust form. No assets become a part of the trust without specific inclusion, so it is important that you revisit your trust provisions from time to time to ensure all of your assets are included.
Now you are ready to move on to whether you want to make your living trust revocable or irrevocable.
Revocable Living Trust vs. Irrevocable Living Trust
With a revocable living trust, the person creating it can later change his or her mind regarding not only the property placed into it, but also the existence of the trust itself.
Some of the benefits of a living revocable trust include the following:
1. Avoids probate, which can mean a faster distribution of assets to your heirs.
2. Potential money savings, though this depends on your financial situation, and remember it does cost something to set up a trust on the front end.
3. More privacy than a will, whose provisions are made public after your death; a living trust’s provisions are kept private.
4. Ability to choose someone to manage your affairs without court intervention should you become incapacitated. Also, since the trust is revocable, if you dispute your incapacity, you can retain control yourself.
An irrevocable trust, on the other hand, is just as it sounds—not revocable. That is, once you put property into it, you cannot retrieve it as it belongs to the trust. Accordingly, this property is not included in your estate’s value for estate tax purposes. This is one big potential benefit of an irrevocable trust, although if your total estate value falls under the federal estate tax exemption, this probably isn’t a concern for you anyway.
Final Living Trust Considerations
Remember that when you establish trusts, be aware of any potential tax consequences (gift, estate and state inheritance) involved with property transfers, and note that you should always have a pour-over will to catch any assets that didn’t make it into the trust or your last will and testament.
Now that you know the differences between the two types of living trusts, you’re ready to move on to the next step in creating your estate plan.
Create a revocable living trust through LegalZoom. Or if you want to create an irrevocable living trust, you can speak to an attorney through the LegalZoom personal legal plan.
Ensure your loved ones and property are protected START MY ESTATE PLAN

https://www.legalzoom.com/articles/revocable-vs-irrevocable-living-trusts-which-one-is-right-for-you

 

Where do Your Tax dollars go? via U.S. Supreme Court Council

Your tax dollars are being spent on government programs that sponsor the victimization of women, children and the elderly.

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Postpone, shift or change the nature of the tax:

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