One of two lawsuit settlementfunding methods is Pre settlement funding, in which on the basis of his or her
pending case from a pre settlement funding company a person who has filed a
compensation case can get funding in the form of a non-recourse loan.
The amount to be repaid never
exceeds the amount of the injured person's share of the verdict even if the
settlement or verdict amount is smaller than anticipated. Rather than buying
legal fees after a settlement Lawsuit settlement funding involves financing of
on-going litigation. Pre settlement companies expect a much higher return as
the risk is much higher in pre settlement funding than post settlement funding.
To people who do not have the
requisite funds to fight their personal injury lawsuit cases the concept of
Lawsuit Settlement Funding proves extremely beneficial. Consider a situation
when you don't have the finances to go to court to fight for your rights, you
have been unceremoniously thrown out of a job and find at the receiving end of
racial discrimination at the workplace. It is here that pre-lawsuit funding
companies enter into the picture. They provide the required funds to the
injured person, who then has to pay a certain percentage to the funding company
on winning the case. It is important to point out that this funding is
non-recourse funding. This means that you don't have to pay anything if you
lose the case.
A plaintiff in need of money
contacts a pre settlement funding company for lawsuit cash, sometimes
on the suggestion of an attorney. The pre settlement funding company contacts
the lawyer who is handling the case, and obtains information about the case.
The loan company offers cash advance to the injured person by assuming the
value of the settlement or verdict on the basis of this information.
Which substantially reducing the
amount of money that the finance company can pay to the client the verdict may
take years for pre settlement funding. To plaintiffs who don't have strong
cases justifying substantial awards the pre settlement funding companies aren't
likely to offer funds.
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