Lawsuit Loans is a term commonly searched in Google for lawsuit case settlement options, but what is most ideally offered in lifting the pressure to settle early is not a loan for the solutions we offer. Our solutions are more commonly known as legal funding or pre-settlement funding. To best differentiate a lawsuit loan from legal funding is simply, a loan you pay back with interest and legal funding is a form of funding that is re-paid only when a case is settled or won. This type of funding can play a key role in helping plaintiffs receive immediate economic relief, essentially lifting the pressure to settle a case for less money.
In small cases, requests for funding help arises when an injured client is hindered by monthly bills with no income. They only need cash for a few months until the case settles. Legal funding can “ease the pain” and / or “bridge the gap” to keep bills paid.
In larger more complex cases involving higher injury claims, set court dates, allow time for discovery, litigation, and delays can take much longer to settle. In these situations, funding can often play a key role in the negotiation while trying to settle the case and help the injured plaintiff receive funding now, as well as a higher payout.
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A single dad is driving his kids home from school when his car is rear-ended by a distracted truck driver. The family is seriously injured. The physical and emotional trauma will keep the dad off work for at least a year. Bills are mounting and his mortgage is past due. The truck driver’s insurance company offers an immediate $300,000 to settle the case. Clients typically walk away with 60% of the settlement, in this case, dad walks away with $180,000 and a quick financial fix.
After reviewing the long-term unforeseen circumstances around the accident, the plaintiff’s attorney deems the settlement amount too low and advises his client not to accept the offer. The lawyer can make that recommendation because he knows his client’s short-term financial worries can be resolved through plaintiff funding.
The injured dad follows the advice of his attorney and applies and receives three months’ worth of living expenses from a plaintiff funding company totaling $25,000. The lawyer counters the insurance company’s offer with a $2.5 million demand. Both parties eventually settle for $1.5 million. The attorney receives his fee of $600,000 and the funding company is paid $25,000. The injured client still clears the remaining settlement over $600,000 more than he would have received with the initial offer.
Lifting the Pressure. If pre-settlement funding were not considered in this case, the client would have been pressured to accept the original low ball offer just to pay his bills. With the funding, the client’s financial emergency is resolved, and the attorney has the time to negotiate the best settlement for his client.
Remember these are not lawsuit loans, they’re lawsuit settlement funding. This type of financing solution lifts the pressure for early settlement allowing your attorney to negotiate the best financial compensation for your case.
As a legal funding company, Certified Legal Funding can better help with your specific needs by calling us at 1-800-922-7439 today. We are available 24/7 because we know the world doesn’t stop for anybody.
Our legal funding services, as stated, can play a key role in helping bridge the financial gap between paying bills and settlement. However, some situations make sense to pursue this type of funding, and some situations most likely are advised otherwise by your counsel. For good reason.
Due to risk-reward life situation not to pursue a lawsuit loan is if you need money for a new car, new house down payment, pay for a vacation, a cruise, anything that is not emergent. We say this because recreational use of legal funding services does not make financial sense in the long run.