How the Pre-Settlement Funding Processes Works
If you are not familiar with pre-settlement funding, here is a short review. The basic idea of pre-settlement funding is that you as a consumer, have filed a lawsuit against a company and want to obtain financing for the litigation. You will need to obtain funding from a third party source in order to purchase your attorney's fees, court costs, etc. Most importantly, you need to be able to pay your bills with this money before the case concludes. While many cases do end in settlements, many others settle long before the case concludes.
In order to obtain funding for your case, you must first submit a request to the funding company. First, the company will give you an estimate of the anticipated settlement amount and based on this estimation you will calculate how much you need to obtain. This amount will typically include expenses such as legal fees, accountant fees, etc. However, the funding company may also request additional information from you in order to determine an accurate pre-settlement advance. For example, they may request documents pertaining to your medical expenses or any other expenses you contend with while in the process of settling your case.
Once the company receives all of the requested information, they will forward the estimates to the insurance company or your lawyer. The insurance companies and lawyers then submit their estimates to the individual plaintiff or defendants who are responsible for paying the outstanding expenses. Often times the individuals who are paying the expenses are unable to pay them at the time of receiving the settlement. In order to ensure that these individuals receive the settlement they are due, the pre-settlement funding process provides cash to the plaintiff or defendants immediately.
Most often, the cash obtained from a pre-settlement funding company is provided to the plaintiff in one lump sum. However, many funding companies will loan the money to the defendants in a weekly basis. If you are a defendant and you need additional money to pay your pending bills or expenses, the funding company will pay the bills for you in small increments over the course of a month. Additionally, many funding companies will require the defendant or plaintiffs to agree to a repayment plan with the loaned funds. Read more great facts, take a look here.
It should be noted that most funding companies will not provide funding to plaintiffs who are involved in a personal injury lawsuit. Therefore, if you have been injured due to the negligence of another, the pre-settlement funding process will not be beneficial to you. In addition to that, most law firms will not provide funding to plaintiffs who are represented by an attorney. Therefore, if you choose to proceed with a lawsuit without an attorney, you will likely not receive a fair settlement. It should be noted that most attorneys will charge a percentage of the final compensation received, so it is important to make sure you find a reputable attorney to represent you. For more useful reference, have a peek here.
One option available to you during the pre-settlement funding process is to obtain cash loans from family and friends. Many family and friends may be willing to lend you money to cover some of your pending expenses while waiting for your lawsuit to be resolved. However, you should be aware of any lending conditions and do your research before signing any type of agreement. As stated above, the majority of funding companies will not provide funding to plaintiffs who are involved in a personal injury case. Please view this site https://www.wikihow.com/Apply-for-Legal-Funding for further details.
If you are not familiar with pre-settlement funding, here is a short review. The basic idea of pre-settlement funding is that you as a consumer, have filed a lawsuit against a company and want to obtain financing for the litigation. You will need to obtain funding from a third party source in order to purchase your attorney's fees, court costs, etc. Most importantly, you need to be able to pay your bills with this money before the case concludes. While many cases do end in settlements, many others settle long before the case concludes.
In order to obtain funding for your case, you must first submit a request to the funding company. First, the company will give you an estimate of the anticipated settlement amount and based on this estimation you will calculate how much you need to obtain. This amount will typically include expenses such as legal fees, accountant fees, etc. However, the funding company may also request additional information from you in order to determine an accurate pre-settlement advance. For example, they may request documents pertaining to your medical expenses or any other expenses you contend with while in the process of settling your case.
Once the company receives all of the requested information, they will forward the estimates to the insurance company or your lawyer. The insurance companies and lawyers then submit their estimates to the individual plaintiff or defendants who are responsible for paying the outstanding expenses. Often times the individuals who are paying the expenses are unable to pay them at the time of receiving the settlement. In order to ensure that these individuals receive the settlement they are due, the pre-settlement funding process provides cash to the plaintiff or defendants immediately.
Most often, the cash obtained from a pre-settlement funding company is provided to the plaintiff in one lump sum. However, many funding companies will loan the money to the defendants in a weekly basis. If you are a defendant and you need additional money to pay your pending bills or expenses, the funding company will pay the bills for you in small increments over the course of a month. Additionally, many funding companies will require the defendant or plaintiffs to agree to a repayment plan with the loaned funds. Read more great facts, take a look here.
It should be noted that most funding companies will not provide funding to plaintiffs who are involved in a personal injury lawsuit. Therefore, if you have been injured due to the negligence of another, the pre-settlement funding process will not be beneficial to you. In addition to that, most law firms will not provide funding to plaintiffs who are represented by an attorney. Therefore, if you choose to proceed with a lawsuit without an attorney, you will likely not receive a fair settlement. It should be noted that most attorneys will charge a percentage of the final compensation received, so it is important to make sure you find a reputable attorney to represent you. For more useful reference, have a peek here.
One option available to you during the pre-settlement funding process is to obtain cash loans from family and friends. Many family and friends may be willing to lend you money to cover some of your pending expenses while waiting for your lawsuit to be resolved. However, you should be aware of any lending conditions and do your research before signing any type of agreement. As stated above, the majority of funding companies will not provide funding to plaintiffs who are involved in a personal injury case. Please view this site https://www.wikihow.com/Apply-for-Legal-Funding for further details.