Quick outline of what exactly lawsuit funding is:
Lawsuit funding involves a cash advance by a lawsuit funding company to a personal injury plaintiff in exchange for a promise by the plaintiff to repay the amount of the advance plus interest, if and when the plaintiff receives a settlement or judgment with respect to his or her lawsuit. Plaintiffs often need this cash advance to help pay bills while they wait for their case to be resolved, particularly because it can often take 6 to 24 months, or even longer, to reach a case settlement or judgment. Lawsuit funding companies help people “bridge” the gap between when an accident occurs and when the plaintiff receives a payout in connection with his or her case.
The cash advance given by the lawsuit funding company is not considered a loan due to the fact that the plaintiff will not have any obligation to repay the cash advance if he or she loses the case. If you have a loan on your house or your car, you are required to make a monthly payment. But not with lawsuit funding. You only pay if and when your case is successfully settled or you receive a judgment. You also do not make any monthly payments. All payments are made at the end when the case settles or reaches a judgment.
Most lawsuit funding companies focus on motor vehicle accident cases or “MVA” cases and the average advance will be in the $500-$5,000 range. However, lawsuit funding companies make loans to many different kinds of personal injury plaintiffs and such companies are often willing to make much larger cash advances if a plaintiff has a particularly strong case and expects to receive a significant payout. Please take a look at our website for a list of all the cases we fund – www.lawsuitfundingsolutions.com
Call us today if you have any questions about lawsuit funding. Thanks.