A settlement loan is defined as a lawsuit cash advance against a personal injury or structured settlement. The other two different types of settlement loans are commercial litigation financing and attorney funding.
A settlement loan typically comes in the form of non recourse funding meaning you only pay back the loan if you are successful in winning your case. When someone contacts a lawsuit funding company for a settlement loan the case is generally handled by the company and your attorney. The company will request from your attorney information surrounding a your accident or injury. This information is used to determine the likelihood of winning your case and the amount of money your case may be worth.
An approval for a settlement loan is contingent upon the strength of your case and the amount of compensation you may be expected to win. The amount of a settlement loan will be determined by each company. The amounts vary depending upon the case type and the lawsuit funding company. There are some companies that are willing to take on riskier cases on a broad personal injury spectrum while others specialize in smaller cases funding only few different funding types. Personal injury law encompasses a vast area of different accidents and injuries. In many cases these injuries can put a family a risk to financial disaster.
Settlement loans are typically used by people whom have long and drawn out legal cases. These cases can be in litigation for months or even years prior to a verdict. When someone requests a settlement loan they generally need money to help supplement loss of wages and expenses while waiting for their settlement to be reached. While the money can be used for any financial need most people use the money to help pay for medical expenses, reduced income, child care, mortgage and rent payments, car repairs and out of pocket expenses. There are other reasons why someone may request a settlement loan prior to their case reaching a settlement. Consider the following: an insurance company or corporation is in business to make money. When legal action is taking against the defendant of the case, its up to these types of companies to act as judiciously as possible with their main focus to get rid of the lawsuit in the least expensive way. This representation costs money and insurance companies tend to offer lower amounts of compensation to the victim at all costs. In some cases they will fight the case to a verdict in hopes of a favorable outcome for the defense.
The facts are that insurance companies have large defense teams. These lawyers represent the “best interest” of their company. They also have the financial backing to keep a case in litigation for months and even years. Expanding a case out over a long period of time is a tactic that is commonly used by the defense. This is in hopes that the plaintiff will settle for less money. A settlement loan can help you keep your case open so your attorney can fight for fair and full compensation for all injuries incurred.
If you have been injured in an accident and now have the representation of a lawyer you may be currently going through medical evaluations and physical therapy. Your lawyer probably recommended ongoing treatment until your injury has healed or you’ve got a better understanding of the negative effects of the injury. Your lawyer is making this recommendation because he understand that once a case has reached a settlement and compensation has been paid, you no longer can receive monies for ongoing medical expenses. Once again a settlement loan can help you keep your case open while giving you money to help pay for such expenses.
Do understand, a settlement loan is a type of funding that is only loaned by a lawsuit funding company. Banks and other lending institutions will not loan money against a legal case because settlement loans come as non recourse.
This content is provided by LawLeaf:
LawLeaf is a lawsuit funding service that matches plaintiffs with a vast network of lawsuit funding companies. Our clients are referred to LawLeaf because our lenders compete for their business. If you are searching for additional information regarding a settlement loan visit LawLeaf.com today.