A pre-settlement funding is an advance of money by a funding source to the injured party, with the understanding that it will be repaid with interest if settlement occurs. This type of financing can be extremely useful when faced with a lawsuit in which there are questions about how much compensation one will receive in the future. Below are ways how pre-settlement funding is useful in lawsuits.
1. Advances of Money are Available That Can Help You Survive Financially
This is essential for those times when you find yourself in a lawsuit and may need to survive on your own until the time when the case settles. The funding source will advance you a certain amount of money and will then take an interest, meaning they will charge a certain amount of interest every month till they have repaid the advance. If there is no settlement, they will only return the principal amount. However, if settlement occurs and the amount received is less than what was awarded, they will return the difference amount. When you are faced with a lawsuit and are facing mounting medical bills and other expenses that you must pay on your own, you may want to consider a pre-settlement funding program.
2. The Lawsuit Process Can Take a Long Time
When you’re faced with a lawsuit, you may be looking at years before it is settled. If this is the case, you may need to fill the gap in between and find some funding that can make it possible. With pre-settlement funding, you can find a company that will advance you enough money so that you won’t be worried about some of the stresses that come with a lawsuit. The funding source will interest the case, and as long as enough money is paid back, you can receive the money. If you can survive on your own until the lawsuit settles and it is paid out accordingly, this may be a great form of available funding.
3. The Funding Source Will Take Action Before Settlement
The reason that pre-settlement funds were created was that people found themselves without any means to live after being sued. You must hope that the lawsuit ends in a settlement for these funds to work. In other words, you need an award that is large enough to pay the damages and your pre-settlement funding source. However, what happens if there isn’t enough money in the settlement? The truth is that it happens more often than you may realize. This means that no one gets paid, and none of the parties involved receive any compensation whatsoever. If this occurs, then you’re left with nothing but a lawsuit that may never be settled. This is a huge problem and one that you may not be able to bear if you are dealing with an injury lawsuit.
4. With Pre-Settlement Funding, You Can Receive the Money Regardless of Settlement
With the current state of the economy and many lawsuits being filed today, it’s not uncommon for settlements to be awarded less than what was requested by the plaintiff. Sometimes this is due to the plaintiff requesting too much, and other times because insurance companies purposely do not pay out as much as they should. In any event, if you have pre-settlement funding, you’ll always be able to receive some payment. This can be a great relief for those involved in lawsuits who face a lot of uncertainty about how the lawsuit will end. What’s more, you can receive an advance on what may be coming your way.
5. Other Types of Funding May Not Be Available
There are times when lawsuits do not get settled, and you have no means to pay the medical expenses acquired as a result of the lawsuit. You may be worried about being sued again because you have nothing to pay for your medical bills. This can be a difficult predicament to deal with, and as a result, many people will turn to other funding sources to help them out. There are some cases when credit cards can offer additional financing. This is a great help, but it doesn’t matter how much the plaintiff requests if there is not enough money to be paid back. This can leave you in a difficult situation and can leave you with nothing but debts. Luckily, pre-settlement funding works for everyone involved.
Pre-settlement funding is a great solution to help you if you are dealing with any lawsuit. There are many cases when people win their lawsuits and don’t get paid all they were awarded. This can leave the plaintiff unable to pay for the injuries they sustained. With a pre-settlement funding program, you can be sure that you will always have a way of getting paid in full no matter what happens.