Settlement funding: Does Your Case Qualify? Part I

Why do we even refer to it as a lawsuit loan? It is clearly not a loan in any sense of the word! To be precise, we should refer to it as settlement funding, a form of funding provided in advance of settling your claim. One may even go so far as to refer to it as venture-capital.

An important aspect of this form of funding is the fact that the applicant bears no risk in this transaction, a benefit of having a non-recourse loan.

The process begins when the lender and applicant strike an agreement. According to the terms of your agreement, if you lose your case, you do not have to repay the loan. Many consider this form of funding, correctly so, as a no-risk type of financial assistance to which you have access while you are awaiting settlement.

Settlement loans come in a variety of guises. An understanding of the types of cases for which settlement funding is issued will prove useful.

Personal injury suits very frequently occur as a result of motor vehicle collisions: Personal injuries of many types occur as result of incidents out of which this type of claim arises. On top of damage to the vehicle you occupied, there are, on many occasions, hospital bills, ambulance bills, and other medical expenses to pay. Due to the stakes involved in such cases, they are often not settled for years.

Cases involving injuries to children: Pre-settlement loans are often difficult to procure in these cases. As a result of many guardians attempting to settle these claims to satisfy their own interests, often at the expense of the injured child, the Court will occasionally appoint an attorney ad litem. The attorney ad litem is charged with representing the child’s interests, even when those interests are out-of-synch with the guardian’s.

Slip-and-Fall: This is the most common type of case. These are cases against which many retailers are taking a very hard stance. It is often necessary to request and obtain video-surveillance of the incident. It is necessary to be very clear regarding the surface on which the slip occurred, obstacles that were present that may have produced the fall, etc. Elicit testimony from witnesses if necessary to support the claim made. Don’t leave details regarding the mechanism of injury to chance.

Want to find out more about your settlement funding, then visit Dr. Tom Rhudy’s site on how to choose the best lawsuit loan for your needs.

categories: settlement funding, lawsuit loan