Accidents are unexpected events that can significantly disrupt an individual’s life. Whether caused by a car accident, a slip and fall, or another unforeseen circumstance, the consequences of such events can be severe, especially when they result in serious injuries. When an injury occurs, victims may be unable to work, leading to financial strain. Insurance companies can sometimes deny or delay claims, leaving plaintiffs with few options. Legal funding provides a potential solution for those in need of financial relief while their cases are still ongoing.
Legal Funding as a Financial Solution
Personal injury lawsuits can take months or even years to resolve, leaving plaintiffs struggling with accumulating expenses. While insurance companies are meant to provide timely compensation, some claims are either denied or delayed, forcing individuals to resort to litigation. Although lawsuits may eventually lead to compensation, the process is often lengthy, leaving plaintiffs financially vulnerable.
Legal funding, also known as lawsuit funding, offers a solution to alleviate the financial stress experienced by plaintiffs during this time. Legal funding allows individuals to receive an advance on their anticipated settlement or award of damages from their lawsuit. This provides the necessary financial relief to cover essential expenses, such as:
- Medical bills
- Housing and utilities
- Groceries
- Transportation costs, such as auto repairs or trips to medical appointments
By securing legal funding, plaintiffs can avoid the pressure of accepting a low settlement offer out of financial desperation and continue with their case until a fair resolution is reached.
How Legal Funding Works
Legal funding is essentially a cash advance on the plaintiff’s expected settlement or award. It is non-recourse, meaning the plaintiff is only required to repay the funds if they win the case or receive a settlement. If the lawsuit is unsuccessful, the plaintiff is not required to repay the funding, making it a low-risk financial option.
The typical process for obtaining legal funding involves the following steps:
- Case Evaluation: The legal funding company evaluates the plaintiff’s case based on its strength, the likelihood of a successful outcome, and the potential settlement value.
- Application for Funding: The plaintiff applies for funding, which can often be done online without the need for credit checks or upfront fees. The potential settlement amount serves as collateral for the advance.
- Approval and Disbursement: After the application is reviewed and approved, the funds are disbursed, typically within a few days. These funds can then be used to cover immediate expenses.
- Repayment: If the lawsuit is successful, the legal funding company is repaid from the settlement or award. If the case is lost, the plaintiff is not required to repay the funding.
Learn more about the process.
Why Legal Funding is Beneficial
Legal funding offers several advantages for plaintiffs involved in personal injury lawsuits:
- Financial Relief: It provides immediate financial assistance, allowing plaintiffs to meet their everyday expenses during a lengthy legal process.
- Avoiding Low-Ball Settlements: With the financial cushion provided by legal funding, plaintiffs are better equipped to avoid settling too early or for less than their case is worth.
- No Repayment Risk: Since legal funding is non-recourse, plaintiffs only need to repay the advance if they win the case or settle, making it a safe option for those who cannot afford additional financial strain.
- Peace of Mind: Legal funding allows plaintiffs to focus on their recovery and the legal process without the added stress of financial worry.
Watch testimonial videos and see what consumers say about legal funding.
Conclusion
Legal funding is an important tool that can provide essential financial relief to plaintiffs involved in personal injury lawsuits. It offers the ability to cover living expenses while waiting for a case to resolve and helps plaintiffs avoid being pressured into low settlements due to financial hardship. As a low-risk, non-recourse option, legal funding allows individuals to pursue a fair resolution without the added burden of financial strain. For plaintiffs facing financial difficulties during a lawsuit, legal funding can be a critical resource to ensure they have the means to focus on their case and their recovery.
