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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.

What a Lawsuit Funding Company Does

Posted by admin in Lawsuit FundingFeb 1st, 2009 | Comments Off

Lawsuit funding companies have now been around for a good number of years. These companies provide legal funding to attornies and pre-settlement loans to anyone who has been the recipient of personal injuy and who is planning to sue. One of the reasons lawsuit funding companies were set up was to help people who had waited years to receive any settlement from a lawsuit. While many lawsuits that are brought as a result of personal injury are settled pretty quickly, sometimes out of court, others can take a long time. Lawsuit funding means that the legal fees are paid and a pre-settlement loan or cash advance means that you can enjoy some of the money while the case is going through the courts.

A lawsuit funding company provides non-recourse loans to you and your attorney. When your case comes to an end and you receive a financial settlement, then your attorney will pay the funding company what is owed out of your compensation, and pay you the rest. If, for any reason you do not win your case and receive a settlement for your injuries then you will not have to pay back the money that you have already had. Lawsuit funding companies usually charge a flat fee that is higher than the advance made to you, because that is why they are in business.