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.