Pre settlement funding is one of the two lawsuit settlement funding methods, in which aperson who has filed a compensation case can get money in the form of a
non-recourse loan from the pre-settlement funding company based on his pending
case. Even if the amount of the settlement or judgment is less than the
estimate, the amount to be paid shall never exceed the amount of the injured
person's share of the judgment. Pre-settlement funds include financing ongoing
litigation rather than purchasing legal fees after settlement. The risk is much
higher in pre-settlement funding as compared to post-settlement funding and hence
pre-settlement companies expect very high returns.
A plaintiff in needof money contacts a pre-settlement financing company, sometimes at the
suggestion of an attorney. The Pre Settlement Funding Company contacts the
lawyer handling the case and obtains information about the case. Based on this
information, the loan company values ??the settlement or judgment and provides
a cash advance to the injured person. The loan and related charges are paid to
the finance company once the matter is resolved.
For
pre-settlement funding, the decision can take years, which substantially reduces theamount that the finance company can pay to the client. Pre-settlement funding
companies are unlikely to offer funds to plaintiffs who do not have strong
cases justifying substantial awards.
pre settlement funding |
pre settlement loans |
pre settlement loan |
lawsuit loan |
lawsuit loans
