In simple terms, pre-settlement loans are cash advances that are offered to the plaintiff of ongoing cases. This type of funding is provided to help the plaintiff to keep their litigation ongoing. The best part of pre-settlement funding is its non-recourse nature, which we will read in detail further. Litigation financing is nothing like bank loans, they are more of a cash advance offered against your lawsuit.
Many say lawsuit financing is relatively new, but serious players in the segment of financing are helping individuals a lot back. These kinds of funding have different names like lawsuit loans, settlement loans, pre-settlement financing, or legal funding. It can be used by plaintiffs and only plaintiffs to fund a wide range of cases such as personal injury lawsuits, auto accident cases, wrongful death, medical malpractices, product liability, and many more litigations.
Pre-settlement funding is more of financial assistance than terming it a loan is absolutely for the purpose to make individuals aware of its existence. To know more about it visit the pre-settlement funding page and get all the needed information.
Many plaintiffs who are not able to get the cash for fighting a legal battle, end up settling for a lot lesser than the actual compensation value. These pre-settlement cash advances just make sure that the plaintiff receives the right amount of money to keep the fight ongoing so that they can end up getting the estimated value as per your legal claims.
Loan repayment is also very different from bank loans. Here the plaintiff only needs to repay the loan if the judgment comes in favor of the plaintiff. In the worst case, if the plaintiff loses the case, then there is no obligation to repay the amount taken in form of a lawsuit loan. Now you may be intrigued by knowing about pre-settlement loans, therefore let’s learn
Before filing for pre-settlement loans, make sure that it is the right option for you. Some important things you must consider before getting financial assistance, discuss this with your lawyer, and understand the duration it will take to reach a verdict on your case. Litigation mostly takes a lot of time to settle. In the meantime, you have to decide whether you can manage without the loan or you need the financial support to keep your chores going. Personal injury not only takes a toll on your saving but also impacts your daily wage.
Consider all the factors then only apply for legal funding. Few more things you need to know before getting pre-settlement cash advances are
To qualify for legal funding, an attorney must be working on your case and represents you in court. Therefore, the first thing you must do is to hire an attorney who will file a personal injury lawsuit in court on behalf of you. One more thing you must follow is to hire a qualified lawyer who works on a contingency fee basis. It means that the lawyer represents the client seeking money for the damages they face, and collects the percentage of the settlement at the conclusion of the lawsuit in form of fees.
After you get your legal representative who will be presenting on behalf of you in court. Find a reputable lawsuit financing company. Applying for lawsuit funding is the easiest part, all you need is to visit our contact page, and fill up important information like Name, Contact details, Case type, and other relevant information. This information must be correct since an executive will contact you after you submit the application. They will inform you about the interest rate and the time to pay the loan.
After you connect with the lending firm and submit all the needed information like case information, attorney contact, then the lawsuit funding company will contact your attorney to understand the case. Further, the strength of the case will determine the amount you will receive in form of a loan. The amount is finalized after a thorough analysis of the case. Once the company does all this they will present the actual loan amount which they can offer. This process will not take much time, and it completely depends on how the attorney works with the firm and the related documents they submit.
It’s really important that while accepting the pre-settlement funding, you should know about the terms and conditions. Every lending firm has its own policy, learn about them. See if they are suitable for you then only accept the payment. Involved your attorney in this, ask them to look after the terms and conditions proposed by the lending firm for offering you the loan. Make sure that you are getting the right loan amount which can help in your case as well as paying some dues. Mostly an individual can get up to 15% of compensation value in advance in the form of lawsuit loans.