Pre settlement funding [http://www.lawleaf.com/personal-injury-funding.html] is a term that is used throughout the legal industry as an advance against a pending lawsuit. Pre settlement funding also referred to as lawsuit funding [http://www.lawleaf.com] is a non-recourse loan that is provided to a plaintiff against a claim. This means if you lose your lawsuit for any reason you are not obligated to pay back the loan.
There are generally two types of legal cases that qualify for pre settlement funding. A plaintiff may secure funding for a personal injury or a commercial litigation lawsuit. Prior to receiving an advance the plaintiff will need to give the lender permission to contact their lawyer.
The initial contact is to get a better understanding of the type of lawsuit and to request documentation outlining the case. This documentation is used to get a better understanding of the case. The information is typically reviewed by an underwriter. An underwriter could be an attorney and in some cases an insurance adjuster. These professionals have experience in reviewing cases relevant to their are of expertise.
In order to qualify for pre settlement funding, the underwriter must believe based upon the documentation presented, the defense is liable. Pre settlement funding is based upon strength of case. The stronger the case the better shot a person has in receiving an advance against the claim.
If the lender decides to provide pre settlement funding for the case they will immediately draw up contracts. Included in the contract will be the amount of money the lender is willing to provide along with the rate. The rate can be a flat rate or a compounded monthly rate. If the plaintiff receives a compounded monthly rate there will be a payment schedule outlining the costs over a set period of time.
If the plaintiff decides to accept the offer the plaintiff can be provided the advance through a wire or check.
Pre settlement funding can be an option that is used if the plaintiff doesn't have the staying power to continue down the litigation path. It provides a financial stop gap between an early premature settlement and full compensation.
There are generally two types of legal cases that qualify for pre settlement funding. A plaintiff may secure funding for a personal injury or a commercial litigation lawsuit. Prior to receiving an advance the plaintiff will need to give the lender permission to contact their lawyer.
The initial contact is to get a better understanding of the type of lawsuit and to request documentation outlining the case. This documentation is used to get a better understanding of the case. The information is typically reviewed by an underwriter. An underwriter could be an attorney and in some cases an insurance adjuster. These professionals have experience in reviewing cases relevant to their are of expertise.
In order to qualify for pre settlement funding, the underwriter must believe based upon the documentation presented, the defense is liable. Pre settlement funding is based upon strength of case. The stronger the case the better shot a person has in receiving an advance against the claim.
If the lender decides to provide pre settlement funding for the case they will immediately draw up contracts. Included in the contract will be the amount of money the lender is willing to provide along with the rate. The rate can be a flat rate or a compounded monthly rate. If the plaintiff receives a compounded monthly rate there will be a payment schedule outlining the costs over a set period of time.
If the plaintiff decides to accept the offer the plaintiff can be provided the advance through a wire or check.
Pre settlement funding can be an option that is used if the plaintiff doesn't have the staying power to continue down the litigation path. It provides a financial stop gap between an early premature settlement and full compensation.