Should You Apply for Pre-settlement Funding?

Posted by admin in GeneralMar 3rd, 2009 | Comments Off

If you have been injured in an accident that was another person’s fault, then you may want to initiate legal proceedings to obtain personal damages or compensation, from that person. You may find that the legal process is long-drawn out and expensive, and in some cases people may be battling through the courts for months, and even years before they can hope to receive a settlement. Lawsuit funding companies may make pre-settlement payments to people in this position, however, the fees that are associated with pre-settlements can be extremely high. Fees are high because unsuccessful claimants do not have to repay the financial advance if they do not receive any money from the other party.

Most lawsuit funding companies work to a set of strict ethical guidelines when it comes to pre-settlement payouts and relevant fees. In the event that you receive a much smaller settlement than was anticipated, then the repayment cannot exceed the amount of money you receive. There is a risk involved in any pre-settlement agreement, because you could find yourself at the end of a long legal battle with little or nothing to show for your efforts. Pre-settlement payments can be very useful, but you should give careful consideration to what is involved before you sign up for anything.

Pre-settlement and Non recourse Funding

Posted by admin in Lawsuit FundingMar 3rd, 2009 | Comments Off

You may not have heard of lawsuit funding, pre-settlement and non-recourse funding but this type of legal finance is designed to make things easier for people who are involved in litigation to get compensation for a personal injury or injuries caused by another. One of the problems with compensation and damages lawsuits is that they can take a great deal of time before a satisfactory conclusion is reached. It is this time factor that makes going to the courts for redress such an expensive and stressful process. If the first sum that is offered is not acceptable to you and your attorney then the case could go to appeal in an attempt to get a higher settlement.

Lawsuit funding companies know that you can wait ages for any payout and, once a contract has been signed, they have the finances to award you a pre-settlement cash advance that will help with your day to day living expenses and pay the legal costs – before any settlement is granted. This type of funding is non-recourse funding, that is funding that does not have to be repaid if you lose the case and receive no compensation.