Personal Injury Lawsuit Funding

Content Provided by LawLeaf a personal injury lawsuit funding company:

When someone is a victim of an injury due to the negligence of another person on entity they maybe entitled to compensation for their injuries. The number of personal injury cases throughout the United States is on a steady increase and while many of these less catastrophic injuries are settled out of court, many aren’t. When a personal injury has caused a financial burden on a person or a family personal injury lawsuit funding may help.

Personal injury lawsuit funding is a way to get a cash advance prior to a case settling. This means you can borrow money against future compensation for your case. When a person applies for personal injury lawsuit funding they typically need help with increasing credit card debt, supplementing a loss of income, paying for mortgage and car payments and help with medical expenses.

There are many different lenders that advance money against a settlement. It is always recommended that you apply with those companies that provide non-recourse funding. Non-recourse means an advance that gets paid back only if the victim of the personal injury win compensation for their case. Non recourse funding for a personal injury case also applies when an individual gets compensation for the fraction of the lawsuit loan.

There are variety of different types of personal injuries that get funded however not all lenders fund all personal injury cases. Prior to applying for lawsuit funding most people will search for those lenders whom provide cash advances for their particular injury. While searching for a company there are other things to consider prior to applying for a cash advance. People may be searching for flexible payment schedules or lower rates. They may also be looking for companies that can provide cash advances on the same day.

Once you apply for personal injury lawsuit funding the lender will typically be in touch with your attorney. Those lenders that are proactive they will immediately contact your attorney requesting a full report of your injury and expected compensation. This information is used to get a fair assessment of your case. Since the lender takes the burden of providing non-recourse funding its important to them that they invest in those cases they believe will get compensated.

Once a case is approved and a contract is signed for the amount of money you have requested a company can wire you the money or send a check. The contract typically outlines a payment schedule along with future payments against your lawsuit loan. The interest rates are typically higher than your standard bank loan because lenders take on the burden that the loan won’t get paid back.

The benefit for those people with bad credit is that personal injury lawsuit funding doesn’t require your standard credit checks or co-signer. While some people elect to different types of funding when they are financially strained, those people whom don’t have other options, personal injury lawsuit funding may help.

LawLeaf is an online legal funding service that matches people looking to secure pre-settlement non-recourse cash advances to lenders whom compete for their business. If you are looking for more information regarding personal injury lawsuit funding visit today.

6 Responses

  1. I’ve seen some information about LawLeaf regarding car accidents. Has anyone used them for a different type of personal injury lawsuit funding? Also, I know they talk about lenders competing for business but are they don’t say what type of rates their lenders offer. Can anyone tell me what types of rate? FYI- I have very good credit.

  2. Most personal injury lawsuit funding companies provide legal funding for a variety of different injury cases. Lawleaf is not the direct lender they are the company that finds rates, more money and find the right lenders who fund all types of cases. The most aggravating part of this process is finding personal injury funding for cases other than car accidents and wrongful death cases. Almost all lenders will consider these cases however there are other cases such as workers comp., slip and falls, product liability etc. that many lenders stay away from. Make no mistake about it, there are lenders who will provide personal injury funding for those cases but trying to find them can take some time.

    Lenders can typically fund cases from 3-4% up to 20-25% depending upon your case.

    Lastly your credit has nothing to do with you getting funding. Personal injury funding is always non recourse funding and they never check your credit. If a personal injury lawsuit company tries to run credit checks on you, look for another company.

  3. There are some case in which a personal injury lawsuit funding is not non recourse. When you begin searching for funding make sure when reading over any contract that the terms and agreements state the loan is non recourse. There are some cases such as workers compensation cases in which you can’t receive lawsuit funding. This is not so much because a company is unwilling to look at your case, just the laws in each state are different. I am an independent litigation finance broker and most of the cases we fund are personal injury cases. These are the most common funding types within the lawsuit funding marketplace.

  4. This is one of the worst things out in the market and if the client wise’s up. Takes the money early on and then dissappears. Why wait for the payoff, if the payoff is for attorney fees and medical providers ?

  5. Kathy, I believe you have a misunderstanding of how pre settlement funding works. As a personal injury attorney, I have dealt with several different funding companies. While I advise my clients on the rates of this sort of lending, some clients need money to pay for their rent and medical expenses and I understand and agree to work with the lender. These companies invest in a case so it doesn’t behoove them to loan against a case if they believe a client will disappear; If the client does the lender will not get paid on their investment. I have been practicing law for over 20 years and I have been dealing with pre settlement funding companies for at least 6-7 years. I have yet to have a client ever decide to disappear because they got an advance. In most cases the advance helps me because it gives me more time to fight for max compensation whereas the client would have been more likely to settle the case for less money.

    These companies will only provide a small fraction against any lawsuit, hence disappearing would make little sense to the plaintiff.. In regards to attorney fees, I have yet to deal with a lender that will provide funding to a client that is paying an attorney on an hourly basis. They only fund cases in which the attorney is hired on a contingency fee basis.

    I hope this provides some clarification.

  6. Camden, I agree with you. I would also like to say these types of companies provide non recourse funding to their clients. If the client loses the lawsuit, they won’t get paid back the advance.

    Mike- It doesn’t matter if you have good credit or not. These companies provide personal injury funding regardless of your credit.

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