What is Lawsuit Funding?

Suffering a personal injury or a devastating accident can place the victim in severe financial hardship. Many victims attempt to recover financial compensation for the injury through legal channels. The problem is that financial bills and obligations do not go on hold while a plaintiff’s case makes its way through the legal system, which may take years.

Lawsuit funding is designed to help alleviate the financial stress and burden for the plaintiff. Lawsuit funding provides emergency funds for the plaintiff. Lawsuit funding provides a cash advance that allows a plaintiff to meet there financial obligations during the lawsuit process. It also gives the attorney ample time to reach a fair and full settlement for the plaintiff. Many times a product liability trial may go on for years. A plaintiff may have a long time to wait for a settlement and financing may be the only smart option for the plaintiff.

Top 5 Advantages of Lawsuit Funding

1. The plaintiff is not obligated to pay back the funds if she loses the case. Repayment is required only when the plaintiff successfully settles a case. The cash advanced in a lawsuit funding is considered non-course. The lawsuit funding company bears the financial burden of the loan. If the plaintiff loses the case, the cash advanced is considered a gift to the client.
2. Lawsuit funding does not require credit checks or verification of employment. The credit history of lawsuit funding applicant is not an issue because a lawsuit loan is not technically a loan. Worrying about bad credit or your credit history should not prevent you from applying for a lawsuit loan. Credit scores do not enter into the equation.
3. There are no upfront or monthly fees. Lawsuit funding is different from typical loans, credit cards and other types of financing in that it does not require monthly payments. Payment is only made at the end of a successful settlement.
4. The plaintiff is not obligated to use the money for specific purposes. Lawsuit funding typically covers mortgage payments, medical expenses, auto payments and other pressing financial obligations. The plaintiff, however, can use funds as she sees fit to cover her obligations.
5. Lawsuit funding provides immediate financial support for the applicant. Funds are usually available within 48 hours after an application has been filed.

How To Obtain Lawsuit Funding

• The plaintiff completes a lawsuit funding application. Applications are typically made online. The application is free. No fee applications ensure that applicants to not have to pay upfront expenses to apply for a lawsuit loan. This eases the financial burden and worries for applicants who are already experiencing financial difficulties.
• The funding company will request the relevant documentation from the plaintiff’s attorney to support the case.
• The plaintiff’s case is reviewed by an underwriting team.
• Upon approval the plaintiff is sent a contract. The plaintiff and the plaintiff’s attorney are required to both sign the contract.