A pre-settlement lawsuit funding helps clients’ lawsuit recovery before even the case settles.
Suppose a victim’s car was hit by a speeding truck causing severe injuries keeping them off work for many months or years. Finally, the plaintiff files a lawsuit with the help of an attorney specializing in personal injury cases, months or years to settle in the court system.
What Can A Lawsuit Plaintiff Expect?
If the victim has not sustained serious injuries, they also need to cover living expenses, like rent, food, family members, and other payments. The injuries hinder them from resuming their work and causing a financial burden.
However, if the doctor suggests undergoing an expensive operation to recover from severe injuries they have sustained due to the accident can cause an incredible financial burden on the victim. In addition, this is a difficult phase for the accident victims and their families as they have no job, which implies no insurance.
Additionally, they have to meet their living expenses and other payments and an added cost of the operation now. Therefore, the available option is to settle for less cash to relieve their financial stress than the actual deserved settlement amount.
The Right Option: Pre-Settlement Lawsuit Funding
The other alternative is to opt for pre-settlement lawsuit funding to meet their ongoing living expenses and move along the cases to get the well-deserving settlement. You should start by shortlisting at least five top litigation funding companies in your area and check out their reviews before finalizing the one.
So, how exactly does pre-settlement lawsuit funding help? First, it helps the victim take care of their financial responsibilities towards their family. Second, it also takes off the financial stress of their back. This way, they can decide without being pressured due to a financial crunch.
You must always contact a professional pre-settlement lawsuit funding like Direct Legal Funding. They offer lawsuit settlement funding at the lowest interest rate, approval within 24 hours, and a non-recourse advance.
How Can You Qualify For A Pre-Settlement Advance?
Plaintiff’s creditworthiness isn’t the factor taken into consideration for a funding agreement. Instead, the plaintiff’s case strength matters the most when assessing the approval for funding agreements. This transaction is more like an investment for litigation funding companies. The companies need to know if their investment is safe or not.
This transaction is an investment for the litigation funding company, and they want to ensure that they can profit from it like all investors. Therefore, the company uses its internal underwriter’s team to review your case to give them an insight into its potential return.
The underwriter will look at several factors in evaluating whether a case is a good candidate for a pre-settlement loan.
i. Litigation Status Is Active
The lawsuit lenders will need the plaintiffs to have an active case and attorney. If your case is ongoing in court, the lawsuit funding company will consult with the law firm to assess the potential of your case.
ii. Case Type
Personal injury cases and other similar cases with chances to receive cash settlement are more likely to qualify for lawsuit funding. Such cases include property destruction, car accidents, negligence, slip and fall incidents, and others. Other cases that can also be eligible for it are employment law cases, whistleblower, unsafe medical devices, etc.
iii. Potential Of Settlement
Underwriters evaluate the estimate of settlement amount after studying your case from every angle after considering the timeline. They want to ensure that cases will get enough to cover the litigation funder’s lawsuit cost & interest rate, attorney’s fees, litigation expenses, and other ancillary expenses.
iv. Experience Of Attorney
The litigation companies will refrain from making any funding arrangement if the plaintiff’s attorney isn’t cooperating or doesn’t approve for personal injury cases filed in the court. Additionally, funder’s will also prefer attorneys with experience with a track record in personal injury cases to understand how pre-settlement funding works.
v. Location Of The Plaintiff
Lawsuit settlement funding is an emerging industry, and the regulatory framework isn’t caught up in several jurisdictions. Currently, the federal government isn’t regulating lawsuit funding like several leading consumer products. Hence, states and court systems look after the regulations. Judges and legislators in the majority don’t recognize this funding as a loan. Still, in such jurisdictions, lawmakers have some consumer trappings such as fees caps, licensing, and disclosure necessity. Only a few litigation funding companies are less likely to tread where the law isn’t settled.
