Thursday, July 8, 2010
Lawsuit settlements funding is a cash advance on the expected settlement or verdict in a filed lawsuit. The funding is provided by a litigation finance company to help a plaintiff stay financially afloat while waiting for the final settlement or verdict in their case. Lawsuit settlement funding has become very popular in recent years due to the economic downturn. Plaintiffs can run out of funds or become financially stressed as a lawsuit grinds through the court system.
Here are some good reasons for seeking a lawsuit loan:
1. No risk: A lawsuit loan does not carry any risk for the plaintiff as funding provided is non-recourse funding which means if the lawsuit is not won by the plaintiff, there is no money paid to the funder.
2. Easy Application. Applying for lawsuit settlement funding is a fast and easy process. Reputable litigation finance companies should not charge upfront fees to apply. In addition, there should be no payments whatsoever until a settlement or verdict is reached.
2. No credit/Bad Credit: Unlike traditional bank loans, an applicant’s credit history or employment status have no bearing on the approval for a lawsuit settlement loan. Approval is based solely on the merits of the pending case, so no personal information such as credit history play into the approval.
3. Fast approval. Lawsuit settlement funding companies are good at what they do. They are well versed in understanding the pressures and burdens felt by plaintiffs. The process for applying for cash advance funding is speedy and approvals happen fast.
4. Money received quickly: When a plaintiff is approved for lawsuit settlement funding, money is sent immediately to the plaintiff. Funds can be wired the same day, or if preferred a bank check can be mailed to the plaintiff.
5. Free to spend: While it is prudent to budget and spend the money wisely, money received via lawsuit settlement funding is the plaintiff’s money, and no one can direct how or where the money is spent.
6. No monthly payments: Repayment of funds does not require monthly payments. Lawsuit settlement repayment only happens on or after the lawsuit is settled or a verdict is reached. If plaintiff loses case, the plaintiff is not required to payback any of the money received.
Lawsuit settlement funding gives plaintiffs the ability to stay the course and hold out for the largest settlement possible. As cases drag on and plaintiffs are pushed to settle their cases, this type of funding buys time and relieves financial pressures it is common for plaintiffs to settle too early. Lawsuit settlement funding allows plaintiffs to hold out for the maximum amount possible.
Saturday, July 3, 2010
The most common types of personal injury claims are road traffic accidents, accidents at work, tripping accidents, assault claims, accidents in the home, product defect accidents (product liability) and holiday accidents. The term personal injury also includes medical and dental accidents.
If the negligence of another party can be proved, the injured party may be entitled to monetary compensation from that party. In the United States, this system is complex. Attorneys often represent clients on a "contingency basis," in which the attorney's fee is a percentage of the plaintiff's eventual compensation, payable when the case is resolved.
Filing and waiting for a case settlement can take a long time. During this time plaintiffs can feel financial and emotional stress. This is why many people work with their lawyer to secure lawsuit settlement funding.
A lawsuit settlement funding is an upfront advance of funds from a pending lawsuit. The amount advanced is usually an amount that is less than the expected amount from a pending lawsuit. Lawsuit settlement loans are very different than typical bank loans as they do not require a credit check, an income amount, or a statement of employment history
A lawsuit settlement loan is based on your pending lawsuit. If your lawsuit does not come out in your favor, the loan does not have to be repaid. So, in order to qualify for a lawsuit settlement loan your case should be strong and winnable.
Lawyers are prevented from lending any money to clients. The American Bar Association has strict rules against such funding from lawyers to clients. The rules were devised to prevent any kind of conflict of interest that would change the legal advice from your attorney.