Pre Settlement Funding in the Law Markets
Pre settlement funding is a financial tool that is being used by plaintiffs throughout the United States. Pre settlement funding is a non-recourse loan against a pending lawsuit. Companies provide this financial tool against personal injury and commercial litigation claims. Money is borrowed by a plaintiff and the plaintiff agrees to use their lawsuit as collateral. If the suit is successful the plaintiff will be responsible for paying back the principle with interest. If the plaintiff loses the case, they don’t have to pay back the advance.
As a client looking for a lawsuit advance on your pending lawsuit cash, the most important aspect is getting the approval decision from underwriting. Your goal is Approval. The aim of this article is to give you, the plaintiff, some help and advice in getting your personal injury case approved. Let’s jump right in!
The first step in getting your personal injury case approved for funding is getting the underwriters the requested paperwork on your case. Cases where the client is proactive in assisting the gathering of this requested paperwork, have a much higher probability of approval. Remember, you are the client, this is your case. You have every right to request documents on your case file from your attorney.
The main reason why this financial tool is used is to help plaintiffs get through the litigation process. If a plaintiff has a financial need they may be forced to settle a case early. If the plaintiff doesn’t have the financial capacity of waiting for a settlement, they may borrow against their lawsuit, without having to settle for less.
While pre settlement lawsuit funding provides financing to the plaintiffs for on-going litigation, most companies won’t lend if the money is used toward the legal fees for a case. In order to qualify for an advance against your case there is a process that a pre settlement funding company will take before providing the advance. A company will contact the lawyer who is handling the case, and request documentation on the lawsuit. The documentation is used to assess the strength of the case. If a company believes there is value in the settlement or verdict, and the plaintiff has no other liens on the suit (besides the attorney fees), they may provide lawsuit funding to the client.
The most common types of accidents companies will consider are motor vehicle accidents, slip and falls, wrongful death and medical malpractice suits.
Medical Records are critical because they go a long way in determining the severity of your injuries. The severity of your injuries is directly proportional to the value of your lawsuit. The more severe your injuries, the more likely your case will settle for a larger dollar amount. And the more severe your injuries, the more likely we can approve you for a larger dollar amount. Personal injury cases where the victim had to have surgery are almost always worth more than cases where the injury did not require surgery. It’s must harder for the defendant’s attorney to attack an injury claim that required surgery. But it’s much easier for the defendant’s attorney to attack injuries that didn’t require surgery and to claim the plaintiff is simply “faking” the injury. We distinguish between injuries requiring surgery and injuries that do not. Injuries that do not require surgery are referred to as “soft-tissue” injuries.