Pre-Settlement Funding

Case Law

Attorneys-Duties-Pre-Settlement-Finance
The Attorney’s duties are to his client not to the lender.

Pre-Settlement-Creditor-Violates-Automatic-Stay 
This case is a Chapter 13.  The Court holds that failure of the lender to turn-over the settlement to the trustee after notice of its requirement to do so under Sec. 362 (turn over), 541 & 1306 (property of the estate) was actionable as a violation of the automatic stay.

No-Estate-No-Lien-No-Jurisdiction 
This case is a no asset Chapter 7.   The Court holds that since the Trustee abandoned all assets there was no estate and that the loan was not a lien; so, the Bankruptcy Court had no jurisdiction to decide whether the pre-settlement funding was against the state’s public policy.

 Assignment-Created-Lien
In this Chapter 13 the assignment was held to create a lien on proceeds that were property of the estate.

Possible South Carolina Law Protecting
Workers Compensation

SECTION 42-9-360. Assignments of compensation; exemptions from claims of creditors and taxes

http://www.scb.uscourts.gov/MessageWebService/ViewOpinion.aspx?id=688