After an auto accident or other personal injury, the insurance company will usually make a low settlement offer hoping the claimant will be want to settle quickly. Many injured victims, especially those unable to return to work and who are watching the unpaid bills pile up, will feel accepting the offer is the only option. In cases like this, lawsuit funding can be used not only to pay the bills and help the victim regain financial independence, but it is also a strategic tool to increase the value of the case.
Like other industries, many lawsuit funding companies heavily advertise, and you will find no shortage of this financial service on the internet.
The first step should be asking yourself why you need the money. Lawsuit funding is provided on a non-recourse, meaning the cash advance is only repaid if you win your case. Because the legal finance company is taking all the risks, this type of funding is more expensive than traditional financing. Therefore, if you don’t need the money to keep a roof over your head, to feed your family, make medical payments, or for other important needs, or, if you have other immediate sources of revenue, you should reconsider seeking a lawsuit cash advance.