Lawsuit funding or legal finance is a non- recourse lawsuit loan or lawsuit cash advance. It carries no risk because plaintiffs owe nothing if they lose the case. Lawsuit pre-settlement funding programs provide them with immediate cash to give them and their attorney time to negotiate a larger cash settlement!
Most of the plaintiffs involved in lawsuits do not realize they can get cash advance before their case settles. It is called as lawsuit funding and often referred as lawsuit loan, legal finance, legal financing, legal funding, legal funds, lawsuit cash advance, litigation financing, pre-settlement loan and plaintiff cash advance. The following 18 guidelines, every plaintiff must know about lawsuit loans and lawsuit cash advance. I hope these will help and guide them to take a knowledgeable and judicious decision while seeking a lawsuit funding or lawsuit loan.
1. Who is eligible for Lawsuit funding?
If you are a plaintiff, involved in any of following lawsuits (but not limited to), i.e.: personal injury, auto accident, malpractice (medical, legal, construction), employment discrimination, fraud, product liability, breach of contract, Mesothelioma, negligence, workers compensation, civil rights, class action, patent infringement, whistle blower (qui tam), workers compensation (not in all states), wrongful death, commercial litigation etc.; and if you are represented by an attorney, you may be eligible for a cash advance or legal financing on your pending settlement.
2. (A) How can I benefit from lawsuit funding?
Many plaintiffs are forced to accept a low offer due to the financial hardship they experience soon after their personal injury. A cash advance on your settlement will allow your attorney the time needed to get the full value for your case.
(B) How the lawsuit funding would help me get more money for my lawsuit case? The defendant, in order to save time and money and settle the case early, will offer you far less than what the case is really worth. If you need immediate financial help you may feel pressured to take an earlier (and often smaller) settlement. Lawsuit funding or so called lawsuit loan can ease your immediate financial needs and allow your attorney to continue to fight for a fair larger award.
3. What types of cases are funded by lawsuit pre-settlement funding companies?
A good lawsuit funding company would provide cash advances on mostly all types of cases. The most common types are listed in fact number 1.
4. Is good credit & employment necessary to obtain a Lawsuit loan?
No, the lawsuit funding or legal financing is not based on cre dit history, unless there is a pending bankruptcy. Applicant may have bad credit score and no employment. summons and complaint
5. Why don’t I just get a bank loan?
Traditional financial institutions, including banks, do not generally lend solely on the merits of a lawsuit. They deem the practice of lawsuit finance or lawsuit funding as too risky.
6. (A) Is this a lawsuit loan?
No, this is not a loan. It is actually non-recourse lawsuit cash advance on the future value of your case. Unlike a loan, if you lose your case you owe nothing in return.
(B) Why is this not a loan?
Loans are repayable absolutely. A loan is type of financial aid which must be repaid, with interest. But lawsuit cash advance, legal finance or lawsuit funding is actually purchasing an interest in your settlement. So, if you lose your case, you do not owe the funding company anything.
7. Do I owe any up front out-of-pocket fees or costs? Are there any additional fees, such as monthly fees, involved?
Absolutely NO! A good lawsuit financing company should not charge any upfront fee or any application fee, processing fee or any monthly fee. There should be only a single fee for the lawsuit funding or lawsuit cash advance, based upon the length of time to settlement of your case. There will be a specific repayment amount, due and payable only after the case resolves itself successfully. And if the case is unsuccessful, there is no repayment required.
8. Will I have to sign any documents? Will my attorney be required to sign any documents?
Yes. You will need to sign an application and after you are approved for lawsuit loan, you and your attorney will sign the Funding Agreement.
9. How big an advance on my settlement can I get?
Lawsuit cash advances are generally limited to, from 10% to 15% of the projected case value. The minimum advance is $250 and the maximum amount available on a single case is one million dollars.