Many clients of Smart Lawsuit Funding ask the questions: what is pre-settlement funding and what is lawsuit funding? Are there differences between the two and is one better than the other?
Lawsuit Funding is a more general and broader term to define the financial vehicle to assist plaintiffs with their lawsuits that are pending or settled. Pre-settlement funding serves the almost the same purpose, but it pertains to cases that have not yet been settled. So basically, pre-settlement funding or loans are extended on cases that are in the earlier states of a lawsuit. Pre Settlement is exactly that – cash advances on cases not yet settled.
Lawsuit funding and pre-settlement funding are ways to get cash now to plaintiffs that feel the pressure of financial demands that come along with pursuing his or her lawsuit claim.
Lets look at the incident to see if it qualifies for Lawsuit Funding or pre-settlement funding.
- Is there clear liability ?
- Are there damages to the plaintiff?
- Is there insurance to cover jury or court awards to the injured party?
Liability. Remember – without clear liability – it’s difficult – not only getting lawsuit or pre-settlement funding, but getting a successful award at the finish of litigation.
Damages. These can be physical, lost wages or any other detriment that the plaintiff claims. Lawsuit funders tend to weight physical or wage loss claims to have a higher chance of being compensated than many other types of damages.
Insurance – It’s very difficult to collect money from a party that doesn’t have any. Insurance is a big part of the equation for lawsuit funders and pre-settlement funders.
Lawsuit funding and pre-settlement funding are approved by underwriters that review the paperwork on a case. Every lawsuit funding that can be considered by an underwriter must fulfill the following condition: A plaintiff must have secured an attorney representing the case on contingency. Remember, some jurisdictions due to state law, do not allow for lawsuit funding or personal injury loans.
Lawsuit loans and pre-settlement funding on personal injury is one of the options to deal with money problems before you receive the proceeds of your claim. You get a portion of your settlement sum before your case settles and is distributed. Once you case settles and the money is distributed, it is then that the the amounts you owe is paid back to the funder. If your case has no proceeds, you do not owe anything. The proceeds of the lawsuit is the only collateral on the case. Bad credit is fine for most lawsuit funding for personal injury loans.
Most winning cases increases in value with documentation showing liability of the defendant, damages to the plaintiff and an insurance policy that stands behind the claim. If there is an offer to settle the case, this also enhances the chances of getting a pre settlement advance or pre-settlement loan.
Basic documentation required for lawsuit funding and pre-settlement funding are:
- Incident/police/ambulance report
- Insurance carrier name and policy limits
- Medicals showing injury
- Copy of complaint or Lawsuit
Tort law gives an injured party a structure to receive compensation for an injury that is a result of another party’s actions. There are a many types of lawsuits that fall under tort law. Many of these cases are eligible for a personal injury pre settlement funding or personal injury loan. However not every lawsuit is successful in obtaining litigation financing.
While your case is in litigation, you can be ready to unlock some of the value in your case. In this way you have another option to stave off financial turmoil and burden from medical, transport and living expenses. Smart Lawsuit Funding provides personal injury lawsuit loans for plaintiffs suffering from many types of the cases. Smart is a leader in personal injury lawsuit loans. Through Smart, obtaining lawsuit funding is simple. Because personal injury lawsuits can take a long time to settle and have no specific time frame for completion, it is always wise to be prepared to apply for a personal injury lawsuit loan.
Some key points to remember are as follows:
- Personal injury lawsuit loans applications are available via smart 24/7
- Bad Credit is ok for pre-settlement funding.
- Personal injury lawsuit loans require plaintiffs to have an attorney
- Personal injury lawsuit loans can be used for daily expenses
- Personal injury lawsuit loans do not have to be paid back until the case settles. If you collect on your case, you pay back the money from those proceeds. If you do no win, you don’t owe anything
- personal injury lawsuit loans are more prevalent for personal injury lawsuits that have supporting documentation of MRI, Epidural injections and/or Surgeries.
- Having documents showing that the defendant is liable add more value to the lawsuit and also more money is placed in the pre-settlement advance.
