As we’ve discussed in the past, the term “lawsuit loan” is actually a misnomer. It is actually not a loan. Rather, it is settlement funding, provided in advance of obtaining a settlement of your claim. It truly is a form of venture-capital.

The fact that the applicant incurs no risk, viz., is non-recourse, as a result of a settlement loan, is an important aspect of this form of funding.

To commence this process, the lender and applicant enter into an agreement. You are not required to repay any of the lawsuit-loan, as identified in the agreement, if you lose your case. Thus, during pendency of a lawsuit, settlement funding is often viewed, and rightly so, as a no-risk source of financial assistance.

There are many of types of cases for which lawsuits may be provided. You may find it beneficial to understand not only the types of cases for which such funding may be provided, but some of the nuances as well.

Automobile Accident Lawsuit: This is a very common personal injury lawsuit case. They often include medical bills that are difficult to pay. It is not uncommon for these cases to drag on for several years.

Injuries to children: These can be difficult cases for which to obtain a pre-settlement loan. Due to the risk of guardians pursuing a claim to solely benefit them and not an injured child, the Court will often appoint an attorney ad litem. The attorney ad litem represents only the child’s interests, interests that may be antithetical to that of the guardian’s.

Cases involving slip-and-fall: This is the most common mechanism that results in personal injury. Many retailers will challenge every aspect of such claims, principally due to both their prevalence and cost. If video-surveillance is available, as is true in many instances, a copy must be procured. In these cases, it is very important to clarify how the incident occurred, such as the surface on which the slip occurred, anything that may served as an obstacle in your path and that resulted in your fall, etc. IN such cases, witness testimony can prove very useful and should be elicited if both possible and it will support your claim. One should never leave to chance details regarding the manner in which the incident occurred.

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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.

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categories: settlement funding, lawsuit loan

Providing settlement funding requires consideration of many issues. In making a lawsuit loan, the risks involved determine the cost to the borrower. You may be eligible for such a loan if you suffer loss or injury and you are willing to agree to repay the loan if you win your case. Because most of these loans are non-recourse, you pay nothing if you lose your case.

Individuals who suffer injury or loss may feel overwhelmed by the litigation process. When this happens, it may be time to discuss the need for a lawsuit loan with your attorney. The lender and attorney stay in close contact with one another, discussing your case.

The lender predicts the cost of settlement funding, relying on those communications, and offers the lawsuit loan based on that assessment. The party often responsible for court costs and, in some cases, attorney’s fees, will be the defendant, i.e., the party against whom you file your complaint, if you win your case. Responsibility for repaying fees related to the settlement funding may also be assessed against the defendant.

Years may be required to get a settlement in the litigation process. All expenses related to the case, irrespective of how long the case is pending, are the injured individual’s responsibility. You may find it impossible to hold-out for a reasonable settlement if you are injured and unable to work. The defendant hopes that this occurs. A lifeline may be available with lawsuit loans in such cases.

Obtaining financial assistance may seem more and more necessary as time goes on and you wait for either a fair settlement offer or a trial date. Your success or failure may be determined by the reliability of the lender/broker with whom you work.

Settlement funding, however, would be appropriate and should only be considered, in most cases, as a last resort. They may be ideal for you if other funding sources are not available. Individuals are wise to carefully consider the costs for obtaining these advances prior to taking the plunge. When you are considering a lawsuit loan, check all available options. The best deal will result from your diligent efforts.

Looking to find the best deal on lawsuit loans, then visit us to find the best advice on settlement funding for you.