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If you’re the victim of a personal injury, you’ll probably be in pain, and if the pain is worse enough, you won’t be able to go to work. In the event this happens, you’ll probably have to file a personal injury claim, so that you can get compensated for your injuries.
The typical scenario, of someone who’s a good candidate for lawsuit funding is normally the following.
- Victim gets hurt
- The victim takes time off from work to recover from injuries
- The victim files a personal injury claim
- The final verdict takes time to settle
- Meanwhile, paychecks are no longer coming in because the victim stopped working
- The victim get’s desperate, and tries to settle
- The defendant’s insurance company offers a low settlement
- The defendant, desperate, takes the settlement
Unfortunately, most personal injury claims take at least 2 years before they are settled. That means any compensation for your injuries will not be coming any time soon. If you find yourself unable to work during this long stretch of time, you’ll probably find yourself financially insolvent. One of the ways you can remain afloat financially, is through the help of lawsuit funding.
The beauty of taking a lawsuit cash advance, is that the defendant doesn’t have to take a low settlement. By taking a lawsuit cash advance, the defendant is able to continue litigating, and getting the highest settlement possible.
Personal injury lawsuit funding is available to people who have a personal injury claim. Essentially, an investor will give you a cash advance, based on the merits of the loan. The victim, who is given the cash advance, can use the money attained from the cash advance for virtually anything. The reason most claimants consider a personal injury loan is because they are non-recourse.
What this means, is that if you lose your case - you can keep the money. The only reason to repay the loan is if you win your claim. The money you receive by winning a settlement, is used to repay the cash advance you received.
Many people have had their life changed, thanks to a lawsuit cash advance. The money can be used to pay for things as simple as rent, or food. The benefits are immeasurable. If you’re running out of financial options, while litigating, then consider learning more about lawsuit funding.
About the writer
My name is James Denton – I’m a writer for Farar & Lewis LLP, a Los Angeles personal injury law firm.
Comments
Although legal funding has
Submitted by spalermo on
Although legal funding has changed many lives, it can also destroy people financially. I recently wrote a post on this very topic: Is Legal Funding Worth It https://www.thesuffolkpersonalinjurylawyer.com/legal-funding-worth-it/
Listed above are some of the pros of legal funding. So I'd like to go more in depth about the cons of legal funding.
• Application fees as well as other hidden fees can add up.
• Because you are not obligated to pay back your loan if you don't win your personal injury case, interest rates for legal funding can be as high as 60%. So, your loan's interest can seriously pile up over time. We've seen individuals have to pay back up to 300% of what they took out.
• There's little government oversight on these types of loan companies. You could very well end up taking a loan from a disreputable company. If the company isn't listed in the Better Business Bureau, it's best to stay away.
• Since these types of loans are not regulated like other loans, it's near impossible to see which company would be a right fit for you. The terminology on their websites differ. Some of it is simply too confusing for people to understand, making it like fine print.
When it comes down to it, you might want to consider other options before turning to legal funding. Can family or friends help you out? If you have no other resort, taking out a loan on your mortgage or your 401K might be a better option for you. Just make sure you do heavy, heavy research on a legal funding company if you are forced to take out a loan from them.
We hope this helps. We strive every day to give the public what they need to know: https://www.thesuffolkpersonalinjurylawyer.com/blog/