Lawsuit Funding Services for Plaintiffs
In the last few years, it seems that there have been a variety of companies springing up that are offering lawsuit funding. Some of these companies are less than reputable charging exorbitant fees to personal injury victims that are unaware of more reputable companies. Other companies are highly reputable doing their best to help those who need financial assistance, while providing affordable rates and still making a reasonable profit for their company.
What Is Lawsuit Funding?
Lawsuit funding, sometimes referred to as a Lawsuit loan or a settlement loan, is money that is advanced to people who have a lawsuit pending, in which there is likely to be a monetary award to the claimant. Some companies also offer funding to attorneys who are litigating a case on a contingency basis and need extra funding to help make their case.
This type of funding is given with the understanding that, if the case is lost and no settlement or money award is forthcoming, that the money does not have to be paid back by the applicant. However, if a settlement is reached or if a money award is given to the applicant, then the lawsuit funding company is paid back the amount of the original advance and all the fees that have accumulated. Funding fees are usually, quite high when calculated on an annual basis, due to the risk that the funding company takes in giving such advances.
Who Qualifies for Lawsuit Funding
In general, anyone who has been injured in some way by another person and has a pending claim in which it is likely that money damages will be awarded may qualify for lawsuit funding. This includes cases involving:
- Product liability
- Employment disputes
- Worker’s Compensation
- On the Job injuries
- Slip and falls
- Sexual Harassment
- Elder abuse
- Wrongful death
However, each applicant is considered on a case by case basis and companies give lawsuit funding to those applicants they feel have a winnable case.
When to Consider applying for Lawsuit Funding
Due to the high cost, lawsuit funding is not something that you would want to consider simply to get money before your case is settled. However, injury claims can often drag on and on and it can sometimes take years before a case is settled and you actually see any monetary award, if you win your case. During that time, you may have medical bills, funeral expenses, loss of wages, car payments, and other expenses may make it difficult to pay your bills and put groceries on the table. In such cases, applying for lawsuit funding may be necessary in order to simply live day to day.
When applying for lawsuit loans, try to only apply for the amount of money you will need to tide you over until your case is settled. This will help to keep the overall cost lower and put more of your settlement money in your own pocket at the end of the day. You may think it would be best to settle the case as quickly as possible to save on fees, however keep in mind that, if your attorney feels that waiting may result in a larger settlement, paying the extra fees to get a better settlement may be more beneficial.
While not every person involved in every personal injury case will need to get lawsuit funding, it’s nice to know that such funding is there should the need arise.
Apply for Funding
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