An injury settlement is a legal financing term that describes an advance against a pending lawsuit. An injury settlement is most commonly referred to as a lawsuit cash advance an is typically used when someone needs money to pay for bills and expenses while waiting for their cash award. When you break the legal definition of the term it is most commonly referred to that of a personal injury case. Injury is caused by a person intentionally or unintentionally. A personal injury in effect is injury caused by a person or entity that effects another physically, financially or mentally. These three terms are commonly referred to as the damages resulting from the injury. A settlement is referred as a verdict of a cash award. This can oftentimes come through negotiations, arbitration or taking the case to court. The ultimate outcome is to reach a “settlement” in which legal representation can get their client fair and full compensations for the damages.
When a person applies for an injury settlement they are seeking cash prior to a settlement. A lawsuit funding company will provide injury settlements as a loan only to a plaintiff of the case. They are making a monetary investment in hopes the case will have a favorable result. The investment is paid back in full with interest attached only if the case is won. Because many injury settlements are lower dollar amounts companies tend to deal in high volume.The more cases they fund the more in interest they will make.
Additional information regarding an injury settlement:
- Injury settlements should be paid back only if you win your case.
- No matter the circumstance, your attorney will be the first to take proceeds from the case. This means your attorney will receive the contingency fee before the loan is repaid. If the amount of the loan is less than the cost of the attorney, you don’t have to repay the loan.
- If the amount of money your receive is lower than the loan amount, you don’t have to pay back the remainder balance of the loan.
This type of lawsuit funding is most commonly referred to as non recourse funding. When you are seeking injury settlement funding a bank, credit card company or other financial groups won’t lend money against pending lawsuits. The process to apply for an injury settlement is unlike the approval process for a bank loan or credit card. The approval process is not based upon credit reports or credit history, rather its based upon the strength and net worth of your case. Whether you have bad credit, no credit or have filed for a bankruptcy, its irrelevant. The lender will evaluate your case and make a decision based upon the strength and net worth of a case whether they will provide injury settlement funding.
The stronger the case the better chance for an approval. The higher the net worth of the case the better chance for a larger monetary advance.
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If you are currently looking for additional information on an injury settlement visit LawLeaf today at http://www.lawleaf.com. LawLeaf is a legal funding service that matches plaintiffs with lenders. At LawLeaf our lenders compete for your business.