When you file a lawsuit
against another person or company, getting a settlement that is fair to you can often take a lengthy amount of time. The types of cases that put individuals in the position to take on a lawsuit, can also make them susceptible to some sort of financial difficulty, whether it be because they had to take time off work or because they experienced hefty medical bills. This can put pressure on those who have been injured to take a settlement that is less than they deserve in exchange for a quick pay out. This is where a lawsuit funding company can help.
A lawsuit funding company can give you an advance on your pending settlement. This will help you get by financially while you fight for the type of settlement you deserve. There are no up-front fees and the funding company will not seek repayment from you if you lose your case. This is not a loan!
How Lawsuit Funding Works
When you contact a lawsuit funding company, they will first determine if your case meets their requirements. You will not be approved based on your credit history or employment status, as you would with a personal loan, but rather on the particulars of your suit. If you do qualify, you will be given a certain percentage of your anticipated settlement. After that, you have no further obligation to the lawsuit funding company until you win your case. At that time you will be required to give the company the agreed upon amount directly from your settlement.
It is also important for you to note that the lawsuit funding company will not be personally involved in your case. They may look over your claim to determine if you are a good risk, however they will not try to litigate, nor hire anyone to litigate, your case in any way.
Who Can Qualify For Lawsuit Funding
Most people who will qualify for lawsuit funding need to have the following:
– A personal injury lawsuit.
– An anticipated settlement that meets the minimum and maximum funding guidelines. For example, if the company gives advances based on 10% of your anticipated settlement and the minimum amount that they will advance is $1,000, then your anticipated settlement will need to be at least $10,000.
– A reasonable chance of winning your case. If the company determines that you do not have a strong enough case, you will probably be denied. This is because they are taking a chance on your case and want to be there to assist you without losing money themselves.
– Any additional requirements that the company may have.
– Someone who has no other financial options.
What Lawsuit Funding Costs
If you win your case, you will need to pay the lawsuit funding company from your settlement based on the terms outlined in your agreement. This will most likely include:
– The total of your advance
– Any interest that is agreed upon. This will be based on your principle amount and will usually be compounded on a monthly basis.
– Any other additional fees. For example, some companies charge a one-time $200-$300 origination fee.
What It Boils Down To
Lawsuit funding can be a great opportunity for a person who has a personal injury that has put them into a financial bind and who has no other way out. They can receive money for their living expenses or bills, so that they aren’t pressured into taking an amount that is less then what they deserve, on a no-risk basis!