Just one in 20 personal injury cases make it to trial and are seen by a judge or jury. This means it’s likely that your case will get settled. However, even the settlement process takes time, sometimes years.
In the meantime, you have bills piling up, legal fees, and living expenses. This is made worse by not being able to work. You can end up agreeing to a lower settlement amount than what you deserve.
Settlement funding can be a viable solution that gives you financial assistance. Keep reading to learn more.
What Is Lawsuit Settlement Funding?
Going to court is not a cheap pursuit. While you have a right to file legal action, you may not be able to fund the legal process. This is especially true when you’ve suffered extensive injuries or damages.
Lawsuit funding is a financial solution that gives you an influx of money upfront in return for payment when your court settlement finishes. You’ll pay a “funding fee” of 2-4% per month, which equates to a percentage rate of 27-60% per year.
Settlement Loan Process
Lenders require that you already have your lawsuit filed. You’ll need to fill out an application with a lender, such as lawsuitssettlementfunding.com. Tell them the details of your case and the amount you hope to borrow.
You’ll get approved based on the likelihood of your case’s success and the amount the lender thinks you’ll get awarded. Once approved, you’ll sign the paperwork and receive your money.
Once your case settles and you have your settlement, you’ll need to begin repayment of the loan. Some require installment payments, and others require a single lump sum.
Advantages of a Lawsuit Loan
The biggest advantage is that you’ll have a cash flow to tide you over while you wait for your lawsuit to settle. It’ll ease the pressure of taking care of your financial responsibilities.
With this financial assistance, you may be able to buy yourself some time to hold out for a larger settlement amount.
Disadvantages of a Lawsuit Loan
One drawback of these loans is that these loans are expensive. Depending on how long your case takes, you could pay an exorbitant amount in interest fees.
There’s also the problem that not all cases qualify for this type of funding. This type of lending is risky for the lender because you won’t have to repay the loan if you lose your case or settle for an amount less than the loan.
You may also have to apply to several companies before finding one that’s willing to fund your case.
Find a Reputable Lender
Because there’s a lack of regulation with this type of lending, there’s a risk of unscrupulous lenders. Look for companies that treat borrowers fairly. If you do work with a less than reputable company, there’s a lack of corrective satisfaction resources.
Do your research before agreeing to work with any company. Check borrow reviews, complaints, and services like the Better Business Bureau.
Consider Your Settlement Funding Options
If you’ve recently filed a lawsuit and are struggling financially, then settlement funding may be a solution.
Think carefully about your financial needs and the amount of settlement you expect to receive. A settlement loan can help ease stress and help you seek relief from your damages and injuries.
Did you enjoy this post? Browse our other legal articles for more helpful explanations of the legal process.