Workers’ Compensation Attorney Loans Not Allowed

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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!

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See What People Are Saying

It turned out to be the best decision I have made in a long, long time.

I got injured at work. Trying to deal with the insurance company became overwhelming mainly because I needed surgery and they would not respond to my calls or emails. I researched local attorneys and decided to choose Gearhart Law Group mainly because it was smaller, I liked the information I read and I felt I might get more individual attention. It turned out to be the best decision I have made in a long, long time. Beth Gearhart made me feel as though I were her only client. She responded to my emails immediately, every time. She explained the whole process from the beginning and everything unfolded exactly as she explained it would. The process took time but I received the surgery I needed and in the end was very surprised by the large financial settlement I received due to Ms. Gearhart’s expertise. I highly recommend Gearhart Law Group.

R. Draine

5.0
2018-05-16T13:27:43+00:00

R. Draine

I got injured at work. Trying to deal with the insurance company became overwhelming mainly because I needed surgery and they would not respond to my calls or emails. I researched local attorneys and decided to choose Gearhart Law Group mainly because it was smaller, I liked the information I read and I felt I might get more individual attention. It turned out to be the best decision I have made in a long, long time. Beth Gearhart made me feel as though I were her only client. She responded to my emails immediately, every time. She explained the whole process from the beginning and everything unfolded exactly as she explained it would. The process took time but I received the surgery I needed and in the end was very surprised by the large financial settlement I received due to Ms. Gearhart’s expertise. I highly recommend Gearhart Law Group.

Would have given her 10 stars if possible!

Highly recommend Beth for WC claims! I was ALWAYS able to talk to her when I called and she responded to my emails very quickly. She was able to get us a very fair amount and did not just tell us what we wanted to hear, she was very honest! Would have given her 10 stars if possible!

B. Atwater

5.0
2018-05-16T13:29:37+00:00

B. Atwater

Highly recommend Beth for WC claims! I was ALWAYS able to talk to her when I called and she responded to my emails very quickly. She was able to get us a very fair amount and did not just tell us what we wanted to hear, she was very honest! Would have given her 10 stars if possible!

I would highly recommend Beth to anyone needed a Workers Compensation Lawyer.

From the moment I called Beth, I knew I had made the right decision. She returned my initial phone call very promptly and was sensitive to my case and situation. I had an injury in Georgia, but live in New York so the case was complicated and unique. I found her to be extremely knowledgeable about Georgia Workers Compensation laws which is what I needed assistance with. I would highly recommend Beth to anyone needed a Workers Compensation Lawyer.

Client Testimonial

5.0
2018-05-16T13:40:08+00:00

Client Testimonial

From the moment I called Beth, I knew I had made the right decision. She returned my initial phone call very promptly and was sensitive to my case and situation. I had an injury in Georgia, but live in New York so the case was complicated and unique. I found her to be extremely knowledgeable about Georgia Workers Compensation laws which is what I needed assistance with. I would highly recommend Beth to anyone needed a Workers Compensation Lawyer.

Gearhart Law Group the best in GA hands down!!!

Words can’t express how thankful I am for such a superb team! From the very beginning Beth waisted no time, she executed every step of the way. I never had to worry. Gearhart Law Group made me feel like I was there most important priority and not another file you just throw away on the desk. From finding doctors and getting the best treatment possible Khristy, your a trooper thank you so much. Gearhart Law Group the best in GA hands down!!!

D. Evans

5.0
2018-05-16T13:40:58+00:00

D. Evans

Words can’t express how thankful I am for such a superb team! From the very beginning Beth waisted no time, she executed every step of the way. I never had to worry. Gearhart Law Group made me feel like I was there most important priority and not another file you just throw away on the desk. From finding doctors and getting the best treatment possible Khristy, your a trooper thank you so much. Gearhart Law Group the best in GA hands down!!!
5.0
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Give us a call today at (404) 445-8370 and tell us about your case. It’s imperative to get started now.

By |2018-07-20T17:08:39+00:00January 14th, 2018|Blog, Georgia Workers Compensation Lawyer|Comments Off on Workers’ Compensation Attorney Loans Not Allowed