Pre-Settlement Lawsuit Financing

                                                                                         

Pre-Settlement Lawsuit Financing
Natalie Tackett, CCFC

Often times, individuals who have filed personal injury lawsuits can wait for quite some time before their case is finally settled. This waiting can sometimes place a financial burden on the part of the plaintiff. For instance, the plaintiff may have been injured as a result of an auto accident and forced into a situation where she could no longer work. At the same time, she continues to receive her mortgage bill, hospitial bill, utility bill, etc. Pre-settlement lawsuit financing can alleviate the problem of everyday expenses and there is usually no risk if the plaintiff loses the case. Funding is not considered a loan so there is no interest charged and no monthly or yearly payments to be made. Funders of pre-settlement lawsuits charge fees that are deducted directly from settlement proceeds. Some are more expensive than others but the funder takes a tremendous risk when advancing funds based on a possible settlement.

Usually the funded amount is limited to about 10-20% of the amount the funder believes the case will settle for. The plaintiff is required to pay back the money that is advanced and fees accrued only if she wins her case. In other words, this is a non-recourse type of transaction meaning that the funder cannot come back to the plaintiff demanding payment if her case was lost. Most funders will not accept a case for advance funding until it is at least six months along. This is because the attorney takes this time to gather and research information relating to the case.

Pre-settlement lawsuit funding offers an advantage to the plaintiff in that they are able to receive one lump sum of money long before their case settles, and at virtually no risk. Funds can be received within 3-5 business days and some funders will send the payment via overnight mail. This timeliness requires the cooperation of the plaintiff and the plaintiff’s attorney. Case approval can take as long as it takes for the attorney to provide the requested documentation to the funder.

If a person is in a situation with financial obligations that have not been met, pre-settlement lawsuit financing may be an answer. It is important to have a clear understanding of the fee structure and what is required by the funding company in order to receive approval. It’s best to speak with someone knowledgeable in the field or perhaps someone who has received funding in the past. It can be a clear benefit for the plaintiff and the attorney.

About the author:
Natalie Tackett

Article Source: http://www.Free-Articles-Zone.com