Tuesday, March 18, 2014, PM | 1 Comment
Lawsuit funding is a non-recourse cash advance which is made to injured plaintiffs and comes with a promise that the amount will be repaid if the plaintiff wins the case. If the plaintiff is unsuccessful in winning the case, he does not have to repay the amount advanced as lawsuit funding.
Acting on the advice of an attorney a plaintiff can contact the company that offers lawsuit cash advances. The company contacts the lawyer who is dealing with the case in order to gain vital information.
Lawsuit funding is very beneficial as it helps the plaintiff to meet regular expenses when the case is pending.
Availing lawsuit funding
A case can go on for years. Meanwhile, he may need money to meet the bills of grocery and medical expenses. With lawsuit funding, he can avoid a financial crisis. Moreover if the plaintiff loses his job or has been disabled lawsuit funding can be a life saviour.
It may not be possible always to wait for funds till the case is resolved. In personal injury cases you an avail lawsuit funding and obtain adequate finances that help you to fight the case.
There is no risk of a lawsuit funding as you need to pay back only if you win the case.
When to apply for lawsuit funding
A lawsuit funding levels both sides of the case. One side simply cannot win because they have heavier pockets.
You can fight the personal injury case till justice is met. You can consider applying for a lawsuit if you have been injured by an automobile, due to negligence of another person or by use of a faulty product.
Even if you have been injured at work, you can apply for lawsuit funding. If you have no other financial options and you need cash to fight your lawsuit, you can opt for lawsuit funding.
Advantages of lawsuit cash advance
At times, plaintiffs may have to face a financial crisis while they are fighting a case. Meeting expenses for surgeries, medication and hospital stay may become difficult.
Loss of a job, losses in business and financial losses can deplete your savings. Financial crisis may pressurize a plaintiff to settle for a lesser amount than he deserves in a personal injury case.
With lawsuit funding, you can maintain your financial stability. It can help your attorney to fight for a just settlement of the case. Lawsuit funding is different from home equity loans and consumer loans.
In most cases of personal injury the financial burden is borne by hedge fund, third party bearers or investors. Before the lawsuit funding amount is released the funders ascertain how far the victim can win the case.
Lawsuit funding depends on the victim’s probabilities of winning the case. If you lose the case, the funder will not get anything.
The amount paid to the victim is a percentage of the settlement amount. If you win the case, you have to pay an amount which has been pre-agreed between you and the lawsuit funding company.
In times of financial hardship
On winning the case you need to pay two or three times the amount the funder spends on the case. According to the agreement a funding agent will try his best to help the plaintiff achieve his financial goals.
If you have adequate funds, you can hire expert lawyers and investigators. You can fight a case strongly and carry on the litigation till justice is meted out.
You may have to meet financial obligations even when the case is on. In such cases, it is advised that you opt for lawsuit funding which proves to be a good alternative.
Wendy Chappell got injured in a car accident. As her lawyer was fighting the personal injury case she opted for lawsuit funding company which helped her to negotiate into a higher settlement.