Is Legal Aid Still Recovering From The Recession?

Posted on August 5, 2015 by Dan Christensen

When the financial crisis first struck in 2007, many different industries suffered, but few realized how it would strike the legal world. Many law firms closed their doors, but those that survived have endured and helped clients through one of the worst financial crises the nation has ever seen. Now that the recession is abating, many companies are trying to get back to business as usual, yet the industry is still reeling from the financial crash.

The Interest on Lawyers Trust Accounts, or IOLTA, was designed to help fund legal aid for low-income individuals by pooling interest from various lawyer trust accounts. However, the recession caused the interest rates on these trusts to drop, and they still have not recovered. Some states, like Connecticut, have passed legislature to try to make up for this shortfall, but even those measures are falling short.

The Legal Assistance Resource Center of Connecticut (LARCC) will be closing in September because of the revenues lost in the recession. Legislators in the state tried to keep the low interests rates on the IOLTA from affecting legal aid agencies by raising court filing costs, but the revenue from those actions fell short by nearly $860,000. Now the LARCC will be closed to help ends meet.

How Will People Be Able to Get The Legal Aid They Need?

Legal aid services are stretched thin by high demand, but services like Beacon Legal Funding can help ease this burden. We can give victims of personal injury and workplace accidents a settlement advance of up to $50,000. These funds can help personal injury victims pay bills and legal fees, which can allow them to hold out for the best verdict or settlement in their case. Check out our simple online application and find out if we can help you.

Beacon Legal Funding—Providing Funding Solutions



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