Who is Eligible for Pre-Settlement Funding?

Pre-settlement funding is a way of financing a lawsuit or receiving money from a legal case before it is concluded. It is not for everyone. There are several requirements that must be met before a lawsuit financing company will consider an advance. After that, each case is determined on an individual basis.

Plaintiff

The person suing in a case in lawsuit settlement funding is usually called the plaintiff. The person receiving the financing must be a plaintiff in a civil lawsuit. The reason for this is that defendants do not receive money from a legal action and would have no additional means to pay back the advance. When a plaintiff wins a case, the award in damages is monetary.

Favorable Case

Suing someone does not mean a person will automatically get money? Many factors go into a lawsuit's outcome, such as what type of suit it is, what happened to the person and whether or not the defendant is likely liable. If the plaintiff does not have a reasonable chance of winning the case, the finance company will probably not advance the money. If the plaintiff does not win the case, most companies do not require the money to be paid back. Personal injury suits are usually considered favorable, as are discrimination and class-action cases. The pre settlementlawsuit funding company will generally speak to the plaintiff and their attorney before making a determination about advancing money. Additional research and information is also usually compiled before coming to a final decision.

Settlement

Some cases do not go to trial. Sometimes, the two parties reach an agreement before the trial begins. This is called a settlement. It is legally binding and involves a payment from the defendant to the plaintiff. The sum is usually less than what the person is asking for in the lawsuit. It may be worthwhile for the parties to settle the case simply to halt the legal fees and expenses associated with a trial. Expert witnesses, filing paperwork and research all cost money. Settling before a trial reduces how much both sides must spend.

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