A lawsuit can be a long lasting and therefore costly endeavor. If you got injured during a car accident or became a victim of medical malpractice, you might need to look into options of settlement funding if you don’t have sufficient access to money readily available.
The principle of settlement funding is simple: a lender provides cash advances to the requester in anticipation of a compensation settlement.
Here is what typically happens. The injured party, respectively the representing attorney, files an application with a financial institution that offers settlement funding options. The application will then be internally reviewed and an evaluation will be made based upon the likelihood of a successful verdict or ‘before trial’ settlement. Further to that, it will be estimated how much compensation money the plaintiff can expect. After that a decision is made and if it is in favor of the applicant, he will have to sign a contract holding the terms and conditions, before he will receive the settlement funding money.
Once the case is closed and the plaintiff awarded with his compensation, he will have to pay back the lender the loaned amount alongside with accumulated interest and other fees that may apply. At first glance this appears to be a win-win situation. But there is more than meets the eye and before signing a contract with a settlement funding lender, the overall situation needs to be carefully looked at and all aspects taken into consideration.