A fairly new source of financing is now available for both people and business owners. It is called lawsuit financing, often known as lawsuit loans ...
A fairly new source of financing is now available for both people and business owners. It is called lawsuit financing, often known as lawsuit loans or lawsuit funding. But these aren’t loans because the money does not have to be paid back except if the case is won.
Lawsuit financing (loans) help customers who are having financial issues. Lawsuit funders don’t require credit checks, monthly payments, notes, or any other security.
Frequently, claimants have missed work or lost their job and can no longer meet their rent or automobile payments. In the past, these claimants have required to accept lesser settlement amounts because of pressing financial difficulties. Today, clients can sustain their personal lives and give the attorney the required time to achieve the complete value of the case.
Often times, individual claimants and commercial litigants need financial loan assistance before settlement or judgment. Kinds of cases that qualify are:
Personal Injury: Automobile Accidents, Any Type Malpractice: Medical-Legal, Accounting, Construction, Wrongful Termination Discrimination Harassment: Sexual/Rape, Any Type And a lot more
There are a handful of companies that provide lawsuit funding. For more info on these lawsuit loan companies, please visit http://www.fredcoutts.com/indexlawsuit.htm. Every company provides funding that is specific to their criteria. All lawsuit funding companies will provide funding for personal injury lawsuits. But there are only a couple which will fund commercial along with other non- personal injury lawsuit cases.
Rates will differ depending upon the risk. Lawsuit funding companies will usually finance up to 10-15% of the possible settlement value. For instance, when the case has a potential value of $100,000, you can anticipate a funding offer of $10,000 to $15,000. Lawsuit funding companies thoroughly analyze the cases they choose to fund. They must like the lawyer and also the potential settlement value.
Lawsuit funding is obtainable in most states and can be a very beneficial way to obtain funds.
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Great! My case qualifies for a settlement loan. What does that mean? More importantly, of the cases that “qualify,” how many actually obtain settlement loans? What makes the difference?
Lawsuit Funding is an interesting industry. As I search the landscape of cases that may qualify for lawsuit loans, as both a healthcare provider and an attorney, I can assure that most applications submitted for pre-settlement loans fall into the abyss-of-denial. Why?
Quite simply, many individuals seek settlement loans who have virtually no discernible losses. Individuals who are unable to document losses (e.g., injuries, finances, etc.) are not going to obtain funding. As the saying goes, “Period. End of story!”
Make no mistake about it, it is very easy to file a lawsuit in this era. Contrariwise, it is often very difficult to prevail in the lawsuit once it is filed. Plaintiffs should keep uppermost in their minds the fact that the defendants are going to be viewing the situation, in almost all instances, quite differently than do the plaintiffs. Many plaintiffs find insurance carriers extremely reticent to pay out any money to plaintiffs for alleged injuries/losses. Never forget, those cases that are unlikely to prevail in the underlying litigation have virtually no chance of succeeding in obtaining settlement loans.
If you intend to obtain a pre-settlement loan, remember it’s your responsibility to clearly document what it is that you sustained by way of either loss or injury. Failure to do so will doom a case to failure. Therefore, it is prudent to retain competent legal counsel as you navigate these waters.
Frequently, plaintiffs come to us requesting lawsuit loans in pro se cases. Such cases are those brought by plaintiffs without legal counsel. A key fact to bear in mind when pursuing settlement loans, “No attorney, no funding!” Most lawsuit funding entities are not sufficiently foolish to place hopes of prevailing in the litigation for which funding is sought on the acumen of a pro se litigant.
A well-accepted adage in Law is the following: “The attorney who represents himself has a fool for a client.” Rarely, is this not true in the case of attorneys. It is extremely likely to be the case for pro se litigants who are dealing with adverse parties, parties who are willing to do whatever it takes to see to it that the plaintiff does not prevail in the underlying action.
Furthermore, those pursuing lawsuit funding must be prepared to proffer expert witnesses who are both reputable and credible with respect to the issues litigated. It will be necessary to have an individual who can clearly establish the link between the injuries allegedly sustained and the incident involving the plaintiff and the defendant. An example of this is a recent case brought to Legal Settlement Loans. That case involved “toxic mold.” The applicant had obtained an expert’s opinion regarding either the existence of toxic mold or the extent of injuries allegedly sustained.
Getting funded via settlement loans relies principally on these three key factors: (1) retain competent legal counsel; (2) reserve lawsuit loans for cases in which demonstrable injuries exist; and (3) be prepared to produce requisite expert testimony, either by way of reports or depositions/affidavits, to establish a credible nexus between the incident to which injuries are attributed and injuries resulting therefrom.
Many companies that offer settlement loans provide no guidance to applicants in ways to enhance their chances of obtaining lawsuit loans. Litigation funding experts specialize in finding the right pre-settlement loans for their clients. Additionally, they will assist them in obtaining lawsuit funding as quickly as is reasonably possible.
Remember, it isn’t sufficient to have a case that “qualifies” for a lawsuit loan. As a plaintiff in need of financial assistance immediately, you want one that gets funded.
Do you think a lawsuit settlement loan is right for you? Would you like to learn more about ? Please visit us today and you may apply online for lawsuit funding and learn more about the .
Our first two articles focused on the ways in which plaintiffs would be able to evaluate both the strengths and weaknesses that arise when pursuing either a lawsuit loan or lawsuit funding. This particular article will focus on those things that transpire once a pre-settlement loan is obtained.
Many of our clients come to us asking, “How do we repay a lawsuit loan?” It is very important for clients to realize that when obtaining this form of financial assistance, there are no upfront fees, your credit history is not an issue, and you have to pay nothing unless and until your claim is settled. The time at which a lawsuit loan or lawsuit funding would be repaid would be once the claim is actually settled. This assumes of course that the claim is settled in the plaintiff’s favor.
One of the foremost questions clients present is, “What happens if I lose my lawsuit?” Another advantage of obtaining settlement loans is the fact that they are non-recourse forms of funding. Therefore, if the plaintiff does not prevail in the underlying lawsuit, the plaintiff repays nothing. The funding-entity has already advanced the funds and the funding-entity cannot pursue the plaintiff if the plaintiff does not prevail in that lawsuit.
Another question clients frequently ask is, “Are there any limitations as to the manner in which I may spend the money I obtain from either a lawsuit loan or lawsuit funding?” The answer to this question is, “No.” The client may spend the money in any manner he/she deems appropriate. The flexibility of the manner in which these funds may be put to use is a real asset of this form of funding. In many cases, clients are in a position in which they must obtain assistance to pay their utilities, mortgage, etc. However, the client is not limited to mere necessities in the utilization of the monies obtained.
Clients also frequently asked, “What happens if I need additional funding in the future? Will I be able to obtain additional monies on the same claim?” Yes, plaintiffs are able to obtain additional funding in the future. In fact, many clients will accept only a portion of the maximum amount that could be advanced at the time the initial funding is provided. If additional funds are required in the future, the plaintiff merely requests additional funding. Additionally, the plaintiff may submit a subsequent request to obtain either a lawsuit loan or lawsuit funding.
It is important for both the plaintiff and the attorney to realize that the funding-entity plays no role in managing the lawsuit. Once the funding is provided, the funding-entity will not be involved in any form or fashion during the remainder of the lawsuit. However, once a claim is settled, the funding-entity will expect to receive repayment for the monies advanced.
It is quite reasonable that many clients are concerned about the manner in which their request for financial assistance will be perceived by their attorneys. It is important to realize that many attorneys are totally unaware of the fact that such financial-assistance exists. However, many attorneys who are familiar with this form of financing are quite eager to assist their clients in obtaining either a lawsuit loan or lawsuit funding to assist them as they pursue their lawsuit.
If you’re currently a plaintiff, have you ever wondered why your attorney can’t just loan you the money? There is little doubt that many attorneys would love to be able to provide financial assistance to their clients. However, attorneys are prohibited from doing so due to the possibility of a conflict-of-interest arising as a result of providing such financial assistance. (It is significant to note, however, that attorneys are often willing to assist their clients with case-related expenses.)
Many clients are concerned that details exchanged regarding their case are not confidential. However, the transaction is completely confidential. In fact, unless the plaintiff elects to put the defendant on notice that either a lawsuit loan or lawsuit funding was obtained the defendant will be unaware that such a transaction occurred. (The plaintiff may wish to put the defendant on notice that underwriters with a great deal of experience in reviewing such matters have deemed the plaintiff’s case meritorious.) It is significant to note that if the underwriters did not deem the plaintiff’s case meritorious, no funds would have been advanced.
Lawsuit loans may prove to be extremely beneficial to plaintiffs. Many plaintiffs find themselves extremely hard-pressed financially. In such cases, lawsuit funding may prove to be both a psychological- boost and a much-needed resource!
Do you think a lawsuit settlement loan is right for you? Would you like to learn more about ? Please visit us today and you may apply online for a lawsuit loan and learn about the .
