Being involved in a serious auto accident may be the most traumatic experience anyone endures in their lifetime. In addition to the physical and mental pain, there is the added stress of how to pay the bills and support a family. Banks typically will not provide a traditional loan when a pending legal claim is the collateral for the loan. That leaves plaintiffs relying on savings, friends or family for assistance. If these sources are depleted or, worse, not available at all, the only avenue left to a desperate plaintiff is to settle early for less than full case value. Nowadays, plaintiffs can seek a lawsuit cash advance, known as litigation funding.
Let Lawsuit Financial explain by way of example. (To protect plaintiff privacy, we have removed any reference to names.)
The family of a 21-year-old Illinois man killed in a car crash last March has filed a wrongful death lawsuit alleging negligence. The deceased man (let’s call him John) was driving southbound while another driver (let’s call him Tom) was driving northbound, crossed the center line and struck John’s car. John was pronounced dead at the scene. Tom suffered non-life threatening injuries.
The lawsuit alleges that Tom was negligent, failed to take proper precautions, and may have been distracted when he crossed into the southbound lanes, colliding head-on into John’s vehicle. The suit seeks unspecified damages. A court date is set for early December.
While defendants are financially backed by huge, billion dollar insurance companies during a pending claim, most plaintiffs are not in a financial position to withstand a lengthy litigation process. This reality is a major reason why most defendants use delay tactics in litigation.
Now that this family has retained an attorney and filed a lawsuit, they may be able to take advantage of litigation funding to help pay the bills (medical bills, funeral expenses, mortgage, and monthly household expenses) and level the playing field to achieve substantially improved case results. Here are a few factors to consider when trying to determine if litigation funding is the right choice:
• Is the family more concerned about their growing, immediate, financial issues than about receiving full compensation?
• Is the family facing eviction, foreclosure, repossession of their vehicle or other significant loss of valuable property?
• Is the family unable to put food on the table or pay for other necessities of life?
• Is the family seriously considering settling their valuable case for inadequate compensation?
If the answer is “yes” to most or all of these questions, this family is a likely candidate for litigation funding. And, if timed strategically, funding should make a huge difference in litigation outcome. Assuming a solid case, the ability to wait out the process should, almost always, benefit the plaintiff.
To get started, they would complete a litigation funding application online or over the phone. Next, Lawsuit Financial would contact the family attorney to obtain basic documentation to help us determine case strength and the amount of funding to be approved. There are no credit checks or employment verification. We fund based on case strength and can typically approve a case within 24 – 48 hours. Once a plaintiff is financially stable, waiting for compensation deserved is easier. If by chance the case is lost, the plaintiff would be under no obligation to repay the lawsuit cash advance. That is correct – lose the case and Lawsuit Financial does not need to be repaid.
To inquire how litigation funding may be able to help you during a pending lawsuit, give us a call at 1-877-377-7848 or apply online.