What is Lawsuit Advance Funding?
Lawsuit advance funding, pre-settlement funding, and litigation funding refer to the same process. In general, individuals who are eligible to apply for litigation financing are plaintiffs who are involved in medical malpractice, personal injury, mass tort or product liability lawsuits. Our sources provide funding to plaintiffs or injured individuals not to cover attorney’s fees. The funds are to cover the medical and living expenses of the plaintiffs until the case reaches a settlement.
Do not confuse lawsuit advance funding with pre-lawsuit loans. Unlike pre-lawsuit loans, pre-settlement funding does not involve a check of your credit history or assets. In fact, it is based on how strong your case is. Also, unlike a traditional loan, our litigation funding sources do not get reimbursed if you lose your case. You only repay the advance if you win or settle your case.
Who is Eligible?
As mentioned, people who are currently involved in the following lawsuits can apply for lawsuit advance funding. The funding can be advanced on a long or short-term basis depending on the nature of a case.
Personal Injury Cases
Your life can be changed forever because of the negligence of another. Personal injury lawsuits may involve anything from car or pedestrian accidents, medical malpractice or worker’s compensation cases. The victims often experience debilitating injuries that lead to steep medical bills. This is not to mention the emotional stress that plaintiffs have to deal with.
Opting for pre-lawsuit loans from a traditional lender like a bank might not be an option for plaintiffs who already have pending debts, monthly mortgage payments or other financial responsibilities to take care of. Traditional lenders usually do not help individuals with shaky financial histories. However, our multiple sources consider people eligible for litigation funding regardless of their negative or problematic credit histories. Lawsuit advance funding is completely based upon the strength of your pending lawsuit.
Medical Malpractice Cases
According to JAMA, (Journal of the American Medical Association) medical malpractice is a leading cause of death in the US. Medical malpractice occurs when a health care specialist or provider deviates from recognized standards of care when treating patients. Patients will sue such health care providers to share the burden of their uncertain futures and financial repercussions that could have been avoided if the defendant had done their job properly.
In situations such as these, we have the resources to help a plaintiff in a medical malpractice suit, supplement loss of income and pay medical expenses. Based on the nature of the issue or lawsuit, a patient can bring a medical malpractice lawsuit against a –
- Health care facility
- Medical institution
Remember, whether or not you are eligible for funding depends on the strength of your case. Why? The strength of your case plays a significant role in getting your full compensation. Since you only repay the advance if you win, your eligibility is based on the likelihood of your success.
Product Liability Cases
A product is considered to be defective if:
- It is unreasonably dangerous
- The manufacturer does not provide adequate instructions for its use
- It does not carry sufficient warnings
Individuals can sue manufacturers if the defective products cause injuries. A product liability suit might seem “cut and dried” but it can take as much as two years to reach a settlement. Of course, considering that manufacturers often have their own team of lawyers to fight such cases, time is usually not on the side of the people who file to sue in the first place. Not only are plaintiffs expected to prove that the product in question was “unreasonably dangerous” to them, they also have to justify the resultant injuries and that the defect exists. Such plaintiffs might also have to take time off from work to attend legal proceedings or be unable to work effectively at all because of the defective product. Their injuries may leave them with no way to supplement the loss of income.
Litigation funding helps plaintiffs bear the financial repercussions of such lengthy legal processes.
Mass Tort Cases
If a lawsuit involves several plaintiffs, it is known as a mass tort.
Mass tort cases typically fall into the following categories:
- One common instrument (such as a defective pharmaceutical product) compels several victims to file a lawsuit;
- One source of injury at one location, such as a cruise liner that sinks and takes it passengers with it.
Since this particular type of case has several plaintiffs, mass tort cases have a higher rate of settlement as compared to individual tort cases. Mass tort cases can include hundreds or even thousands of claims. Pending claims might increase in value over time, and each plaintiff verdict might require new case filings. The huge scale and risks associated with such cases might broaden their scope and, of course, the time it takes for it to achieve a settlement. The plaintiffs might not necessarily have enough funds saved to pay for the expense of personal injuries that are the basis of the case going to trial, and to supplement any loss of income caused by the injuries.
One of our many trusted sources may agree to provide lawsuit advance funding to help plaintiffs pay their bills before their mass tort case reaches a settlement.
If you think that your case might meet the eligibility requirements mentioned above, apply now. Call us today or inquire online to find out if lawsuit advance funding is the right option for you.