Settlement Funding

This content is unique and provided by LawLeaf, a lawsuit funding company.

Settlement funding has become very popular over the last several years due to a diminishing economy & a rising unemployment rate. To begin understanding lawsuit settlement funding we first need to understand how it works. Lawsuit settlement funding is a cash advance against a pending or already settled lawsuit. This means you can receive a lawsuit cash advance against a case that is going through the litigation process or has already been settled or awarded by a jury or judge.

Settlement funding should never be confused as a loan. While we may refer to settlement funding as a lawsuit loan it’s not exactly a loan. Lawsuit funding is provided as a non recourse advance / loan. This means if you happen to lose a case you will not have to repay the company that provided the advance. If you were involved in a motor vehicle accident and received settlement funding, you will only be obligated to pay back the advance if you win compensation. If you end up losing the case, you owe nothing.

Settlement funding is used by plaintiffs and attorneys. We often refer to it as litigation financing when money is provided to the attorney. Settlement funding is provided through various funding sources. The most common funding source is usually a hedge fund. A hedge fund for litigation financing is created by the fund manager and set-up to loan money on a non recourse basis to attorneys and plaintiffs; typically for personal injury and commercial litigation claims. A fund will typically specialize in an area of law which their underwriters are most comfortable underwriting. It is very common that a fund will provide only one or the other.

The money typically comes from investors and approvals typically come from the underwriter of the file. An underwriter will review the claim and determine whether its fundable through the documents presented by the attorney. If the case is good a funder may be willing to loan a percentage of the expected proceeds.

For more information on settlement funding, please visit LawLeaf online.

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3 Responses

  1. NEED GUIDANCE I HAVE BEEN BULLIED AT WORK BY MY PRESENT SUPERVISOR AND SHE HAS EMPOWERED OTHER TO CONTINUE HER BULLYINGT TOWARDS ME WHEN WORKING IN OTHER AREAS. i HAVE FILED SEVERAL EEO COMPLAINTS, GRIEVANCES AND HAVE AN ATTORYNEY. NEVERTHELESS, THIS CONTINUES AT A NON-STOP RATE I AM A SINGLE MOTHER AND HAVE DEVELOPED MANY HEALTH ISSUES DUE TO THIS UNDUE BULLYING AT WORK

  2. I was in a car accident on 02/16/2010. I needed surgery and I lost my job. I recently was considering what to do settle or get money from law leaf. I know that I was taking a chance because there is so much to consider about a settlement from the insurance company. My lawyer said screw it. I found law leaf from this site and they ended up getting me 25K because I wasn’t going to settle. The second offer I got was so much bigger and while I have to pay back the money I’m still going to get a lot more money.

    If you are reading this screw the insurance companies because they absolutely suck. The other driver was in total liability because they slammed into me. I’m sick to think of the difference of offers from the time I did what I did with the funding thing to now. The difference is 10;s of thousands and we are still not settling because of my medical bills plus my job loss money.

    This website is really good for the information!!!

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