Below is an in depth guide with Everything you need to know about the pre-settlement lawsuit funding industry.
If you have filed a legal claim as a plaintiff and the case has been appealed then you might be in a financial bind. In cases like this the opposing law firms attorneys have a strategy to try and bleed you dry financially hoping that you may be short on cash. They do this so that you can settle the case for less money out of court while you wait for the appealed case to go back to court. What 500cashout.com can do is get you those funds in advance with our pre-settlement funding services to help you maximize your settlement in your lawsuit.
An Appealed case would mean that you haven’t yet gotten to a final verdict, pre-settlement lawsuit funding is the bridge to help you and your family financially during these tough times. Pre-settlement lawsuit funding refers to the cash advanced to a plaintiff based on an anticipated verdict in a pending court case. When an individual litigant files a lawsuit, they may apply for a loan from a lawsuit funding company, which will then evaluate the claim and give the plaintiff money on the claim\’s estimated value. In this article, find out more about pre-settlement lawsuit funding.
How does pre-settlement lawsuit funding work in an Appealed Case?
After suffering from a personal injury or loss due to negligence on the part of an individual or company, you might need some money instantly to pay for medical bills, legal fees and to cater to living expenses. Sometimes the injuries could be debilitating, that they might prevent you from going to work or going about your daily business. Pre-settlement lawsuit funding comes in handy in helping plaintiffs pay for immediate bills and meet their day-to-day expenses such as food, rent, and power bills.
To apply for pre-settlement lawsuit funding, several prerequisites have to be taken into account.
- Consulting an Attorney
- Filing of a lawsuit:
- Presenting your case
When your attorney is presenting your case on your behalf in a court of law, preferably it will be in the district where the incident occurred. You can only apply for pre-settlement funding if your case is actively in court or the case has been settled and you are awaiting your funds and need cash now. If you have lost on the initial court case, some companies also offer appealed case lawsuit funding awaiting the appeal’s outcome.
Shopping around for lawsuit funding company: Once your case is in court, you may now look around for the best pre-settlement lawsuit funding company. Different companies have their modus operandi when it comes to funding lawsuits. Make sure you do thorough research to settle on the best company. Alternatively, you may consult your attorney, who may be more knowledgeable on which companies are the best in the market.
Applying for pre-settlement funding on an Appealed Case
Having found the best company, it is now time to fill out the paperwork regarding your case. With your attorney and financial experts’ help, you can come up with a watertight application detailing all the specifics of the incident and why your case is valid and should be awarded a lot of money.
Reviewing the application:
With the application now in the hands of the pre-settlement funding company, it is now time to review it. The company will dig into the case’s details and look into the documentation to assess the likelihood of success. The company may also contact your attorney to gather more information about the incident and the lawsuit.
Deciding on your application
After thoroughly reviewing your application, the company will decide on whether to fund the lawsuit or not. If the lawsuit has a higher likelihood of success, your application will likely be approved. If the court case is weak with little chances of success, your application might be declined. However, decline or approval of the pre-settlement lawsuit funding does not necessarily imply that you will lose or win the case. There could be other reasons why your application is declined.
Disbursing the financinng to the plaintiff: If the application is approved, the company evaluates how much money to advance to the plaintiff based on the value of the claim. Ordinarily, you cannot get the whole claim since the attorney will have his cut from the settlement claim. Medical bills are also settled from the loan. Once all these expenses are sorted, you can have your money wired to your account mostly within 48 hours or a maximum of three business days.
Advantages of Pre-settlement Lawsuit Funding
- If you find yourself struggling with unexpected expenses such as medical bills or lost income, going for pre-settlement funding might be the best course of action. Here are the top advantages of pre-settlement lawsuit funding:
- Breathing space: Lawsuit funding gives you the much-needed breathing space to cater for living expenses, loan payments, mortgage, and medical bills during the pendency of your lawsuit. Remember, life does not stop, and with so much to accomplish, pre-settlement funding goes a long way to alleviate immediate financial needs.
- Buys more time for negotiation: If your attorney is in active negotiation with the defendants, pre-settlement lawsuit funding may allow you more time to negotiate. This way, you do not have the pressure of settling for a low payout but can prolong the negotiation as long as necessary to obtain commensurate compensation.
- Credit scores matters less: Unlike other forms of loans, a plaintiff does not need to have an excellent credit score to receive pre-settlement lawsuit funding. In fact, most companies do not perform a credit check on the plaintiff but only check the plaintiff’s application’s merit and its likelihood of winning the court case.
- No recourse if you lose: Unlike other forms of financing that require full repayment, pre-settlement lawsuit funding is a no recourse form of financing. This means the plaintiff is not liable to pay back the advance payout if they do not win the court case.
Frequently Asked Questions About Pre-Settlement Lawsuit Funding
Here are answers to some of the most pressing questions about pre-settlement lawsuit funding.
How Much Money Can a Plaintiff Get In Advance?
The money you can get as a lawsuit loan depends on the estimated value of your claim. Different companies have different methods of calculating the payout depending on your needs and your cases expected outcome. It is up to you to look for the best company to give you the best deal and at a lower cost.
What Happens if the Plaintiff Need More Money Down the Road?
Depending on the specifics of the lawsuit, the plaintiff may get more than one advance. Most pre-settlement funding companies will give a payout of between 15-20% of the final settlement. If the initial advance pre-settlement was not enough to cover bills and other exigencies, the plaintiff might receive another advance if the case qualifies. No claim is exactly similar to another, and each is treated on its own merits.
What Claims are Covered by Pre-settlement Lawsuit Funding & Which Aren’t?
Companies offer to fund a variety of claims. However, personal injury lawsuits are the most common that qualify for pre-settlement funding. They include;
Personal injury– when someone is injured due to the actions or inaction’s of another.
Premises liability – when someone suffers an injury while on the premises or property of someone else.
Product liability – When someone suffers injury as a result of using a product.
Medical malpractice – When someone suffers injury due to the actions of a medical professional
Wrongful death – When someone suffers demise as a result of anothers negligence or actions, their close family members may be entitled to compensation.
Other cases might involve inheritance issues, employment-related claims, and violation of civil rights.
What Happens If the Plaintiff Wins or Loses the Court Case after the Appeal?
When a plaintiff files a claim in court, there is an equal chance of winning or losing depending on the merits of the case. If the plaintiff wins the case, there is no fuss as the pre-settlement financing will be deducted along with other expenses such as attorney fees, medical bills, and interest. The balance will then be paid to the plaintiff.
However, suppose the plaintiff loses their case. In that case, they have no liability to the funding company since pre-settlement lawsuit funding is not a loan but a purchase of a portion of the settlement proceeds. Pre-settlement funding is also known as non-recourse, which means the financing company cannot ask you to pay back if you lose the case. You may also qualify for appealed case lawsuit funding pending the hearing and determination of your appeal.