How Does Lawsuit Funding Work?
There was a time when injuries caused by an accident or someone’s negligence could set you back thousands of dollars with no means of fair compensation in sight. The legal funding process and availability of lawsuit advances have changed the playing field. Plaintiffs no longer have to feel pressured into accepting small settlements because they can’t afford to wait it out.
Pre-settlement lawsuit funding, litigation financing, and lawsuit cash advance funding are terms that refer to the same process. Accident victims often have to wait long periods of time before their cases reach trial or before their cases are settled. The long wait means that victims often have to deal with financial burdens that are directly caused by the subject of their cases. People can now turn to companies like ours who have the resources to find you the cash you need; money to ease your financial burdens while you wait for a settlement to be reached.
Unlike traditional personal injury lawsuit loans, this funding does not require repayment if you lose your case. It is non-recourse funding. Because there is no way to regain the money in the event of a loss, our litigation funding sources are particular about the cases and plaintiffs they will fund. Litigation funds can be expensive because they pose many risks to the lender but not the Plaintiff.
“Lawsuit Funding advances can make it easier for you to pay your bills during a lawsuit.”
The Funding Process
Acquiring pre-settlement litigation funding often includes the following steps:
Step One – Case Evaluation
Imagine this scenario: Your lawyer tells you that the opposing attorneys at the insurance company are employing stall tactics in order to push you to settle for an amount that is nowhere near what you are entitled to. They figure that if they take long enough, you will be in such dire financial condition that you will have no choice but to take whatever they offer. Your attorney tells you to “hang in there” because you have a good case and because when you get your settlement, he will get a sizeable portion.
This is easier said than done, however. Your lawyer does not have to pay for your medication because the pain from your injuries is so unbearable. He doesn’t have to pay for the groceries or go to work and rehabilitation for you either.
This is where pre-settlement lawsuit funding companies come in. Legal funding can provide you with the cash you need now, so you can hold out for the money you deserve. Our sources will evaluate the likelihood of the success of your case based on a review of the facts and documentation.
Our funding sources won’t accept your request for funds unless they are fairly confident that you can win your case and pay the funds back.
Step Two – Documentation
Once our funding sources have a general idea about the nature of your lawsuit, your attorney will be asked to forward the legal documents from your case. Documents are needed to help determine if your lawyer can win the case for you. This information includes your medical records and other reports related to your injuries.
Step Three- Repayment Upon Successful Settlement
When our contacts agree to fund your case, you and your attorney will be required to sign legal documents. The documents allow a lien to be applied to your case. All this does is ensure that the advance will be returned from the money awarded at the completion of your case.
Remember, litigation funding tends to be available to certain types of cases.
Contact us today and find out if you qualify for litigation financing. By filling out the inquiry form on the upper right of your screen, you could be on your way to getting the financial relief you need.