Settlement Advances

When someone has been injured in an accident they have certain legal rights. They have the right to seek compensation for their accident and they have the right to seek settlement advances prior to a verdict. Settlement advances are non recourse loans given to the plaintiff in a personal injury case. Essentially there are four different types of settlement advances: pre settlement funding, commercial litigation advances, structured settlement advances & law firm loans. The most common settlement advance is that of a personal injury.

  • A pre settlement advance is defined as lawsuit funding prior to a case funding
  • A structured settlement advance is defined as lawsuit funding for future payments or buyouts of a case that has already reached settlement.
  • Commercial litigation advances are defined as lawsuit funding in commercial type cases such as breach of contracts or copyright infringement cases. Sometimes this type of funding is not that of non recourse.
  • Law Firm advances can be both advances against pending personal injury cases as well as financing to help law firm growth.

Settlement advances are typically used to help plaintiffs pay off expenses while waiting for compensation from their case. All to often plaintiffs settle their cases prematurely because they are in financial havoc and need money to help pay for mortgage & rent payments, car expenses and food. When someone secures a settlement advance they essentially give the attorney more time to fight for full compensation for their case. A person that has been involved in an accident should always consider the financial repercussions prior to settling their claim. Once you’ve settled a case you can’t receive additional compensation. This means if you settle a personal injury claim your ability to seek ongoing compensation for medical bills and expenses for physical therapy you can’t recoup those costs at a later date.

A personal injury case can take months or even years before a settlement is reached. For those people that have ongoing medical expenses and have been advised by their attorney not to settle early, a settlement advance can help. There is no question that settlement advances aren’t for everyone but if you are one of the Americans that are struggling in making your monthly rent or mortgage payments or need cash for increasing expenses, a settlement advance can help.

Provided by LawLeaf:

LawLeaf an online lawsuit funding company provides settlement advance services throughout the United States. LawLeaf’s network of legal funding lenders compete for your business. If you are searching for additional information on settlement advances visit LawLeaf today.

3 Responses

  1. This is a very good description of settlement advances. I am very familiar with personal injury law as I’ve spent the last several years reading and writing articles for similar topics. When someone is considering a settlement advance it is very important to understand both the positives and negatives. For instance if you are in financial trouble and need money for important things like food, rent or worst case scenario surgery than yes it makes sense. If you are looking to pull money out of your case for a shopping spree or vacation reconsider.

    Most companies do provide non recourse funding so its a good idea to shop around to make sure when a company provides the advance you don’t have to pay it back if you lose the case. You may also be able to shop rates a little. Many companies charge higher rates for different cases because of a comfort level. Each company has different people evaluating a case so while one company may have good rates others may have better.

    Most companies provide settlement advances for all types of personal injury cases. The most common is a car accident. Settlement advances for car accidents tend to be those cases with the highest approval rate because negligence is often proved.

  2. […] don’t pay back the loan if you’re not successful in winning compensation for your case. Settlement advances for train accidents are common for those families that need help paying medical expenses and living […]

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