Lawsuit Funding Companies
– What You Should Consider

Mar 17, 2010

In the last few years, many people have learned that, if they are involved in a personal injury accident, they may be eligible to get lawsuit funding, or a type of cash advance, against what they may be able to win in their case. A lawsuit cash advance is not a loan, because it does not have to be paid back directly by the plaintiff. Instead the company who granted you the advance will take out the money they have advanced, and the agreed-upon payback, from the settlement once it has been won. What, then, is the purpose of lawsuit funding? The purpose is to give you access to money while you are waiting for your case to go through the court system and to reach a settlement. If you’re considering a lawsuit cash advance, there are a few things that you should think about.

The Time

One thing that you should definitely think about is time. Time is a huge factor when it comes to lawsuits. Most attorneys will be straight with you about how long they believe the case will take, and an experienced attorney will likely be very close. Listen to them. If they say that the case will take six months, then expect it to take at least that long, if not longer. If you have budgeted your funds and you realize that you will not have the money that you need in order to pay your bills, then you may want to consider lawsuit funding.
But it is a good idea not to wait too long, as lawsuit funding can take a bit of time to get approved. The information has to go through a few different levels before the company can approve you, so make sure that you apply as soon as you realize that you are going to need the money.

Fees

When you start looking at lawsuit funding companies, you will find that there are a number of them available to select from. Some of these companies may charge out-of-pocket fees in order for you to get funds from them. This is not really a good idea. The company should make money if they give you an advance, as they will take a portion from the settlement. They should not, however, request that you pay them any sort of fees from your pocket, including monthly fees or application fees

Losing

It is also important to note that non-recourse lawsuit funding companies will not require you to pay back the advance in the possibility that you lose the case. If the company states that you are going to be responsible for paying back the funds, that is considered a typical loan and not lawsuit funding or a lawsuit advance. A reputable non recourse company will only get repaid if your lawyer wins your lawsuit. You should never have to pay any cash from your pocket.

Related Posts: