What happens if a plaintiff can’t pay his bills on time, or at all? What if he defaults on his mortgage? Litigation funding companies provide a valuable service that aids plaintiffs with paying the mortgage, medical expenses, monthly household bills, or simply putting food on the table.
Here is an illustration how the funding process works:
James is seriously injured in an auto accident due to a negligent driver. He is unable to return to work and struggling financially, yet his lawsuit is months from settling. He is three months in arrears on his mortgage payments and the medical bills keep coming in. James has exhausted all help from family and friends. Facing foreclosure, his options are limited. He considered accepting the insurance company’s offer of $650,000, but his attorney advised against it. He considered filing bankruptcy, but although he would save his home, he would ruin his credit rating for years to come.
James contacted a lawsuit funding company who reviewed the merits of the case. The funding company approved him for a $3,000 cash advance and a contract was prepared and signed. Eight months later, his case settled for $1.4 million; the funding company was paid from the proceeds of the settlement.
Lawsuit funding gave James the opportunity to wait for a higher settlement without risk. If he had lost his case, repayment of the cash advance would have been completely waived because lawsuit funding is provided on a no-risk basis. Because there are no credit checks when applying for lawsuit funding, there is no impact to a plaintiff’s credit rating.
Lawsuit funding is not for everyone; every case must be individually weighed. But, for those with limited financial resources, settling early for less than full case value just to pay the bills may be a lost opportunity. Visit Lawsuit Financial online or call our office to determine if lawsuit funding is right for you and your case.