What is Lawsuit Funding and How Does it Work?
Before we delve into how the lawsuit funding process works, let’s see what it is. Pre-settlement funding is a settlement cash advance that our sources provide to plaintiffs who are currently fighting lawsuits or have reached settlements. The funds are also known as plaintiff advances. The purpose of the advances is to help plaintiffs cover their living and medical expenses following a personal injury incident while they pursue a fair claim in a court of law.
Unlike traditional lawsuit settlement loans, pre-settlement advances are not held against assets. In other words, they are given as non-recourse loans. This means that the plaintiff is not held financially liable if he ends up losing his case. There is no recourse in the event of a lost case and, therefore, no need to consider a person’s credit history into account when determining eligibility. Repayment is based solely on the outcome of the case. For this reason, our sources only accept cases that we believe will be winners or have already reached settlements (post-settlement cases).
Settlement cash advances are usually acquired in personal injury cases. For example, an individual files a personal injury claim if he is riding a bike while following the rules of the road and is rear-ended by a speeding motorist. While many accidents result in soft tissue injuries, bike accidents often result in severe injuries and fatalities since the only thing protecting a biker from the hard asphalt is a helmet.
Unfortunately, personal injury cases can drag on for months or years before a verdict or settlement is reached. For most plaintiffs, this can mean months of medical bills and unemployment. Your attorney might be fighting to obtain more money than the insurance company is currently willing to pay. Convincing them otherwise takes time. Whatever the situation may be, you should not be forced to settle for an amount lower than what you deserve, just because you need money fast.
How to Qualify
The only way you can receive a lawsuit settlement advance is if you are a plaintiff in a case. As a plaintiff, you are the one seeking compensation for a personal injury. You are not the defendant. In addition, you should have a licensed attorney fighting your case. Our sources will not finance you if you plan on representing yourself.
Here is how the litigation funding process usually works: You provide us with some information about the nature of your case. We match you with one of our multiple funding sources that will contact you to discuss your case. You provide them with permission to speak with your attorney. From there, our lending sources will analyze the facts of your case to determine your chances are of a reaching a successful outcome. Then you will be informed about what funding program you qualify for. You receive your cash. You pay it back only if and when your case settles.
The Application Process for Plaintiff Advances
The application process for a lawsuit settlement loan is usually done online. When you, the plaintiff, apply for funding, you and your lawyer will need to share information with our funding sources. Once your application is approved, you must sign a records release form that obliges you and your legal representative to share necessary information and legal documents about the case. This includes medical records and other documents that will be needed to make a determination.
Getting Your Funding
The documents and discussion with your lawyer play major roles in the application process since they allow our sources to evaluate the validity and strength of your case. For example, if the case warrants personal injury lawsuit funding, the sum of money advanced will be based on the strength and size of your case.
It is really quite simple: Apply for funds, get your attorney involved and send documents that pertain to your case. A few small steps can get you the funds you need now to tide you over till the case reaches a settlement.
Remember, the main goals of the screening process are to assess the quality of your claim, the extent of your damages, the likelihood of success, and the time it will likely take for the settlement amount to be paid.
Once your request for funds is approved, you may receive your money in as little as 24-48 hours.
The rules regarding lawsuit funding differ in each state. Contact our experts for a better understanding of the applicable rules in your state. Apply today and find out if you qualify.