Legal Settlement Funding - How to go About it Properly

on Monday, June 26, 2017 at June 26, 2017

Legal Settlement Funding 

Dealing with a legal system can be a mind-boggling act because of attorneys, judges, trial session, and endless paperwork. If you have not been through the process before, it can be even more intimidating. Personal injury cases are municipal lawsuits in which the accused or their insurance company pays the victim for their losses and injuries due to negligence. As you may know, personal injury claims can take many months or years to finalize. All this requires money to be spent on the part of plaintiffs for medical expenses, personal expenses, and legal expenses. 

What is a settlement funding?
In general terms, settlement funding involves a third party that lends sums to the plaintiffs who have filed a lawsuit. The practice of this lending money is known as lawsuit funding. For a plaintiff to acquire this funding, the plaintiff's claims are first verified by the third party in that they should be genuine and should have enough evidence and therefore good chances of winning the claim. The plaintiff must have an active case with a personal injury attorney.

Settlement funding is a mechanism designed to which plaintiff's get monetary support to see personal and medical expenses while their claim is in a court of law. The manner in which the value of the loan is set depends upon the assessed value to the harm done by one party (the defendant) to another (the plaintiff). 

Procedure to Get Settlement Funding Granted:

If the negotiated settlement fails, then the case continues, and the judge or jury make the decision. After assessing all the aspects of the case, the nature of the damage, evidence, amount of the claim, the laws, the funding (third) party decides how much litigation financing should be provided to the plaintiff. It can either be granted in a single lump sum, or it can be set up in a so-called "structured settlement." 

 This Structured settlement works by circulating a particular, pre-set sum of cash to the plaintiff over a specified time. The Plaintiff has to return the funding to the third party upon successfully winning the claim(s). The total amount to be returned on such loan may be a pre-fixed amount, or a percentage of the claim including the initially funded amount or a percentage of the claim(s) won plus the original amount as per the deal between the party and the plaintiff.

How Long Does It Take To Get Lawsuit Funding?

Based on the characteristics of the case, the evidence produced, the degree of the damage, and the promptness of the assignment of fault, the law of the land and many other factors, the funding party takes time to assess the claim in its entirety. Therefore, it might take a few weeks to a month to determine the amount to be advanced to the plaintiff.

To relieve this time and pressure on litigants, there are companies like that are dedicated to offering litigation financing, based on the estimated settlement amount.

These companies have huge resources increasing the chances of plaintiffs getting the required funding. Furthermore, they have experienced lenders who work quickly to get the plaintiffs the required funding as fast as possible. 

 This proves to be crucial since not all litigants in need have the resources or the time to wait several weeks or months for the lawsuit to settle before getting money for immediate medical and personal expenses.

 

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