Need Cash for Your Lawsuit? You Need Pre Settlement Lawsuit Funding

One of the sneaky tricks big companies will use to force a settlement for a smaller amount is to force the case to drag on and on without a verdict. Whatever techniques are needed to accomplish this they will employ, i.e. requests for additional time to prepare further evidence, and so on. By doing so they know that many individuals who are already under financial stress-due to the injuries or job loss that is being litigated-will settle for far less than they could have gotten had they persevered till the end of the lawsuit. Let's take an example.

Say you are injured in an accident at work that is due 100% to employer negligence. Your attorney advises you to sue the employer for $80,000 and the case begins to be litigated. After about six months, your savings is just about run dry, and the employer's attorneys contact you with an offer of $10,000. You might be tempted to take this much smaller amount at that point, because it is one of your few options to get money right away.

Now say that instead of accepting the much lower amount, you apply for pre settlement lawsuit funding. If you apply for $10,000, you should be able to make it the full length of the trial without needing additional money. At the end of your lawsuit, you are awarded the full amount of $80,000 in compensation. Although you will have to pay back the money you borrowed, that still leaves you with close to $70k to pay your lawyer's fees and medical bills with. That's a lot of money!

By extending individual plaintiffs a lifeline in the middle of their litigation, pre settlement lawsuit funding allows every plaintiff in cases such as:

personal injurymotor vehicle/passenger injuryworker's compensationmedical malpractice lawsuits

There is usually no cost to determine if you are eligible for a lawsuit cash advance-lenders can determine in a few minutes whether your case would be likely to win or not. If it seems favorable, they will contact your lawyer and the process is easy from there. You should be notified (generally within 24-36 hours) if you have received a lawsuit loan.

Pre settlement lawsuit funding is what's called "non-recourse" meaning that it is offered with the understanding that if you lose your case, you don't pay back the money. Lawsuit funding agencies understand that this is a tough time for you financially, which is why they offer these types of loans risk-free. Sure, money borrowed now is money you'll have to pay back later. However, when keeping in mind the bigger picture that a pre settlement loan can help you to obtain a much larger compensation amount in the end, most people agree that it is worth it.

Joshua S. Smith touches on many genres within the pre settlement lawsuit funding niche, among other topics. For more information on this author please visit his bio.

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Why Litigation Funding Is a Leading Option in the Legal Financing Industry

The most common reason for plaintiffs settling a lawsuit out of court is living expenses. That's right; the party initiating the lawsuit will often settle for far less than the suit was filed for simply because they run out of money.

Rather, the justice system, like everything else in our society, runs on money. And if you have none, then usually you are out of luck and may no longer have a case, even if nothing else about your situation has changed.

That's why litigation funding has grown so rapidly in recent years. Litigation funding, or lawsuit settlement funding, operates on a simple principle: offer the plaintiffs in a case money to keep the lawsuit pending, and in the end they will win much, much more than the big company opposing them offers to settle for at the beginning. In fact, the average case that goes to verdict and receives a compensation award will be many times the amount that the other party offered the plaintiff before the case began litigation.

Litigation funding levels the field so that you, as the individual litigator, have a chance to compete with the corporate conglomerates and corporations. Their deep pockets ensure that they are willing and able to drag the case out as long as possible in order to strangle a smaller settlement amount out of the plaintiff. By getting a cash infusion through litigation funding, plaintiffs are able to continue their lawsuit through to a verdict.

Litigation funding is no-risk for the plaintiff, because it is non-recourse-that means that if the plaintiff loses the case, they don't have to pay back the money. All the risk is assumed by the litigation fund lending company. You can use your pre settlement cash for anything you choose, from medical expenses to school tuition to just plain putting food on the table while you wait for a settlement in your case. It's your cash to use as you like, and there are no restrictions or rules regarding it.

However, unless you are one of the wise 3 in 10 Americans who have a three-month emergency fund, you probably have few other options. It's important to keep in mind the larger picture here. If your lawsuit amount is for $100,000, and you take out a lawsuit loan for $10,000, even after you subtract lawyer's fees (probably in the neighborhood of $30,000) you still walk away with nearly $60,000! That much money will pay for a lot of medical expenses. And it's far better than the $10,000 or $15,000 the other side would have offered you at the beginning of the lawsuit.

Whether your case is a personal injury, car accident, wrongful death/dismemberment, product liability, or even toxic mold, you may qualify for litigation funding.

Joshua S. Smith is an author with expert knowledge across many niches including litigation funding financing for litigation, and lawsuit finance.

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Lawsuit Funding Options

When it comes to lawsuit funding there are several options and within each option you may have choices. The most common type of legal financing is pre settlement. This option is available to individuals that are in the process of a claim or lawsuit. Whether the case has just begun or it's going through an appeal, if the case has not yet reached closure, the option will always be pre settlement funding. The second option is post settlement. This option is available to individuals that have already reached a settlement or verdict. If the individual is waiting for their award through a settlement or judgment, the option is considered post settlement funding.

The different payment options:

When a person applies for legal funding they may also qualify for different payment option. A person may have the option of receiving a cash advance in a lump sum or through monthly or quarterly disbursements. This is most commonly referred to as a line of credit. When a person is approved for a maximum amount he or she may elect to receive several disbursements up to the maximum, over a set period of time. The option will be available up to a certain time period, as lawsuits can change. In the agreement, a company may put stipulations in the contract stating the client has up to a certain date to access the line of credit. If the person goes over the date, the company will probably underwrite the case again.

There are several reasons why a person may decide to borrow on a payment schedule. A plaintiff may decide to receive a line of credit because it provides them with the comfort of knowing they have additional funds available if they need them. Another reason why a line of credit makes sense is because it allows a person to borrow only what they need. Because litigation financing can be expensive its best to borrow only what you need; compounded rates and scheduled increases can add up fast. If a person receives a large cash advance up front they may be more inclined to spend the money frivolously. A line of credit can help you budget the money for the most important items such as ongoing mortgage and rent payments, car payments and groceries.

The option of declining an offer without paying an application fee:

If a person receives an approval they should not be required to pay an application or underwriting fee if they decline any offer. A person's financial circumstance may change for the better during the process and no person should be required to agree to an approval for any reason.

It is important that each person take advantage of all the options available to them. Each person typically has a unique circumstance and they should have the ability to decide what makes sense for them.

Legal funding can be expensive and a person should only borrow what they need.

Josh Shores is a Director of LawLeaf, a legal funding  company.

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