Legal funding is in no way considered a “new” option for individuals that are going through the lawsuit process, and waiting on settlements. If you are asking yourself, “Why do I need money for my lawsuit?” I would first ask yourself, do I have money to pay a lawyer, and continue a case? In the event that the person inquiring about a cash advance is injured, or were involved in an accident, they are probably not working.
Lawsuits are expensive, and most individuals cannot afford tens of thousands of dollars to hire counsel, pay their bills, support their family, as many individuals who are waiting on settlements are out of work due to injury, unemployed because they were unjustly laid off, fired, or quit because they were discriminated against.
There are many misconceptions about lawsuit cash advances. First off, it is not a loan. If the case if lost, the individual does not have to pay anything. Legal funding companies underwrite the case, and determine whether it has a good chance of being successful, and settling for a an amount that determines the amount of funding they will provide. debt collection statute of limitations
How it works: The individual submits their information, and their case is reviewed to determine the legitimacy, which is based on if the case is winnable, and how much the outcome is projected to be. For accident and injury cases, the current medical bills, and the insurance policy limits are taken into account, which usually determine how much funding will be provided.
There are many types off cases that are eligible to receive cash advances for their pending lawsuit, until they reach their settlement. Kinds of cases include:
- Wrongful Death
- Malpractice – Legal & Medical
- Product Liability
- Slip & Falls
- Workmans Comp
- Employment Discrimination
Although there are many more, these are the most general of the types of cases that are eligible for lawsuit settlement funding.
Individuals can receive their lawsuit cash advances within 24-48 hours. Although, some cases do take longer based on case type, and complexity of the lawsuit. The cases that usually take longer are ones that have many parties involved, and there is a dispute about “what actually happened.”
“Legal advances for individuals waiting on settlements have increased not only due to the economy, and more claims, but also due to the fact that lawsuit advances are a relatively under recognized option”, stated expert Ron Duncan.