Jessica Diaz, CFA
Jessica Diaz is a passionate advocate for personal finance. With over 25 years of experience in corporate finance, investments, accounting, and personal finance. She currently oversees the operations for investments and annuities for clients that have her working with some of the largest insurance companies in North America & Canada. These insurance companies oversee more than $5 billion in regional insurance premiums each year. Maintaining a dynamic workplace environment Jessica has designed personal financial applications and software to help enlighten and educate amateurs. Her mission is to help clients preserve capital, grow their retirement accounts, and improve profitability. Under the surveillance of the investment committee. She continually facilitates proper risk assessments and works on aligning operational objectives with her core principles. This entails annual conferences with active money managers where they discuss strategic preservation of capital, wealth management, and tactical asset allocation recommendations while ensuring all work complies with privacy laws, rules, and investment regulations.
Jessica also serves the corporate finance and content direction for 500 Cash Out. Her expert analytical support and broadr management organization skills have been crucial in the development of processes for incorporating growth. Her corporate finance experience over the last 25 years functions as a versatile capacity. Her varied contributions include credit default swap analysis, annuity reporting, development of financial forecasts,and evaluating yearly budgets at the end of each fiscal year has helped her grow as an essential team member. Jessica also sits on her organization’s board enterprise risk management committee, lending her unique strategies and conservative planning outlook for her colleagues to review when working strategic decision-making processes.
Jessica holds a Master of Business Administration from Mcgill University and a Bachelor of Science in business administration from the University of Colorado. She is a chartered financial analyst charterholder and a certified public accountant.
Jessica is also an active donor and volunteer to numerous causes that she is passionate about including the Ronald McDonald foundation and Breast Cancer awareness. also serves as an active. She is married to her husband Matthew of 9 years and has a dog named Wilson.
The legal industry is growing tremendously, and experts in this field have made new developments to ensure justice is served to all. That’s why they’ve developed a cash flow solution (legal funding options) to help plaintiffs survive through lengthy litigations.
Unfortunately, not many are familiar with legal funding, how it works, and who can access it. While this funding solution may be arguable among scholars in different specialties, plaintiffs certainly need financial support as they pursue their fair settlement. This comprehensive legal funding guide will shed some light on this idea of financing plaintiffs
Legal Funding Explained in Detail
Is legal funding essential? Does it serve an existing need? Before getting into details, here are some terminologies used interchangeably to mean legal funding (However, in this legal funding guide, we will use legal funding):
• Lawsuit lending
• Litigation funding
• Pre-settlement funding
• Post-settlement funding
• Lawsuit loans
• Legal settlement funding
So What Exactly Is Legal Funding?
It’s a form of non-recourse cash advance given to a plaintiff in exchange for a percentage of their lawsuit settlement proceedings. If you resolve to take out the funding, the agreement to repay the advance amount will be based on a successful resolution of your lawsuit.
Meaning if you’ll not be obliged to pay back the borrowed amount if you lose to your defendant or the proceeds are less than what you owe as per the signed agreement. Legal funding serves as monetary relief to litigants needing immediate cash flow to pay their bills during a lawsuit.
Even better, no restriction on how to use the cash. You can consider this funding essential. It offers the plaintiff enough money to endure until a resolution is reached and plays a key role in helping them secure a maximum settlement award.
Is Legal Funding a Loan?
There is a misconception that this form of funding is a loan. But, it’s an advance. Do you know why? No upfront fee is paid to secure the financing, nor will the plaintiff’s credit score come into play, and neither will they be required to make monthly payments to the funding company. As mentioned earlier in this legal funding guide, the plaintiff can only repay if they receive settlement proceeds.
Who Qualifies For Legal Funding?
Any plaintiff experiencing financial hardship and unable to work after suffering a personal injury can apply for legal funding. However, they must have a pending case, a legal representation and anticipate waiting long before their lawsuit concludes.
You are likely to qualify for legal funding provided you have a personal injury attorney helping you to seek justice following areas:
• Premises liability accident
• Car accident
• Dog bite
• Nursing home neglect
• Slip and fall accident
• Worker’s compensation
• Wrongful death
• Medical malpractice
• Product liability
How to Apply for the Lawsuit Loan
Technology has simplified the application and approval of legal funding. Plaintiffs can now apply for this funding at their comfort via the website of their preferred legal funding company. Not only that, they can shop for the best offers. All they need is an electronic device that can handle online processes.
But they must first perform due diligence to determine if they necessarily require the funding. Upon resolving to take out the cash advance, the plaintiff will provide details about their lawsuit and lawyer. The financing company will reach out to the plaintiff’s lawyer if they need any information verification.
Once the request is approved, the money will be transferred within 24 hours after the plaintiff’s attorney confirms that the repayment of the amount advanced will be deducted from the settlement proceeds. Remember, the lawsuit funding approval is dependent on the details provided in the application and the plaintiff’s lawsuit background checks.
What to Keep in Mind Before Submitting Your Application?
Unlike other lines of credit, legal funding companies don’t demand non-liquid collateral as they base the financial support on the merits of the plaintiff’s case. But these companies’ decision to fund the plaintiff is dependent on other factors.
The funding company will require specific information to determine the plaintiff’s eligibility. Hence, the attorney representing the litigant will have to verify some of the details provided on the application form. They’ll also have to issue satisfying evidence demonstrating a higher possibility of the case being concluded to the plaintiff’s benefit.
These experts work for the legal funding company. Their role is to examine the application and offer a customized financing solution that suits the plaintiff’s lawsuit, time, and budget.
Their extensive understanding of all the litigations that fall under legal funding makes their input valuable. This includes product liability claims, motor vehicle accidents, personal injury suits, and medical malpractice litigations. Hence will evaluate;
• The lawsuit strength
• Probability of the case concluding to the plaintiff’s favor
• The anticipated how long it’d take before the case closure
• The estimated settlement amount
• How much the lending company can afford to advance the plaintiff
• The discount rate to charge on the advanced amount
What’s The Percentage of Legal Funding Is Advanced?
While this funding was developed to help plaintiffs, the amount advanced depends on the case’s projected value. But, most borrowers’ advances range anywhere from 15% to 20% of the estimated settlement amount.
Though, the percentage can go higher or lower based on the borrower’s need for cash and the anticipated outcome of their case. That’s why professionals come in to evaluate the plaintiff’s eligibility and how much they can get as advance.
Types of Legal Funding Accessible to Plaintiffs
From this legal funding guide, it’s evident that pre-settlement funding is the most popular and commonly known type of legal funding but there is also something called Post Settlement funding which is a loan after the case is over but the plaintiff has yet to receive their funds.
Pre is the prequel so to speak of post settlements. It’s the lawsuit advance given to plaintiffs whose case is yet to conclude. Often, personal injury lawsuits tend to take long before completion, placing the plaintiff in serious financial hardship.
But the availability of pre-settlement funding sees many navigate through monetary challenges as they get to access the funds needed to pay their bill. The only nightmare with this funding is that the plaintiff and the financing company are usually unsure of the lawsuit outcome.
The uncertainty makes this type of lawsuit advance a costlier venture for the funding companies. Meaning, a lending company must be convinced that the borrower stands a higher chance of winning a substantial settlement. Only then can they decide to give out the advance.
• Post-settlement funding
This legal funding is given to plaintiffs whose claims have been concluded, but there are delays in the payment of their settlement. It’s not guaranteed that award payout will be done after the litigation closure. Some scenarios may necessitate appeals prompting subsequent legal proceeds to evaluate the suitability of the predetermined settlement amount.
Depending on the procedures and intense reviews required, it may take long before it’s concluded to payout the settlement. In this case, the plaintiff can decide to apply for post-settlement funding to lift any financial burden they may be facing.
Can The Plaintiff Consider a Bank Loan?
Thoughtful question! But banks may not be an excellent option for the plaintiff. To acquire any credit facility from your bank, you will need to place hard collateral. Besides, the bank will also perform credit checks to determine your eligibility.
Not to mention, the loan advance will attract interest and monthly payments. Some plaintiffs may not meet the required credit rating to obtain lawsuit-related credits, complicating their lives further.
Legal Funding Is Your Chance to Continue Seeking Justice
Your life shouldn’t come to a standstill simply because you’re facing litigation. Legal funding is an option that gives you a chance to push through life while a lawsuit is still ongoing.
Don’t be tempted to accept a low ball offer just because you’re facing a financial crisis and the case seems not to conclude anytime soon. Legal funding companies help plaintiffs like you access the finances they need to take care of their bills until the court determines a fair settlement award.
Apply for Legal Funding from Us Now
Don’t let litigation hold your life. Or allow yourself to be at the mercy of the defense. Reach out to a reputable lawsuit funding company like 500 Cash Out versus one like JG Wentworth. We will get you a stomized advance option that suits you. Wait no more! As emphasized in this legal funding guide, the move is a great solution to access the financial resources needed through the litigation period.
Jessica Diaz, CFA
• Masters in Business Administration
• B.S. in Business Administration
University of Colorado
• Corporate Finance Advisor
• Personal Finance Advisor