Settlement Lawsuit
An injured person contacts a company that offers pre-settlement legal financing, sometimes at the suggestion of a lawyer. The finance company contacts the lawyer who is handling the case, and obtains information about the case. Based on the information provided, the loan company estimates the value of the likely eventual settlement or verdict, and offers a cash advance to the injured person on the basis of this estimate. The fee can be a flat fee or a monthly fee that accrues each month the loan is outstanding. When the case is established, or the defendant pays after losing in court, the loan and fees are paid to the finance company.
These advances are offered as non-recourse financing, meaning that an injured person is not required to pay if they lose the lawsuit. Similarly, if the final settlement or verdict is lower than expected, the amount that must be repaid never exceeds the amount of the injured person's share of settlement or verdict. For legal reasons, these advances are not characterized as loans.
The amounts vary considerably, depending on the nature of the case and the company. Many companies offer pre-settlement funding amounts between $ 500 and $ 25,000. Some offer amounts up to $ 100,000. Fees vary by company and type of case. Some companies set the rate of progress in advance. Others charge a monthly fee for each month between the time the funding is issued and when it returns, sometimes as high as 15% per month.
Settlement Lawsuit
An injured person contacts a company that offers pre-settlement legal financing, sometimes at the suggestion of a lawyer. The finance company contacts the lawyer who is handling the case, and obtains information about the case. Based on the information provided, the loan company estimates the value of the likely eventual settlement or verdict, and offers a cash advance to the injured person on the basis of this estimate. The fee can be a flat fee or a monthly fee that accrues each month the loan is outstanding. When the case is established, or the defendant pays after losing in court, the loan and fees are paid to the finance company.
These advances are offered as non-recourse financing, meaning that an injured person is not required to pay if they lose the lawsuit. Similarly, if the final settlement or verdict is lower than expected, the amount that must be repaid never exceeds the amount of the injured person's share of settlement or verdict. For legal reasons, these advances are not characterized as loans.
The amounts vary considerably, depending on the nature of the case and the company. Many companies offer pre-settlement funding amounts between $ 500 and $ 25,000. Some offer amounts up to $ 100,000. Fees vary by company and type of case. Some companies set the rate of progress in advance. Others charge a monthly fee for each month between the time the funding is issued and when it returns, sometimes as high as 15% per month.
Settlement Lawsuit
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