Lawsuit funding has experienced a surge in popularity since its inception in the early 1990s. This financial solution offers numerous benefits to plaintiffs, providing them with cash advances to support their legal battles. The best part? There’s no obligation to make monthly payments; plaintiffs simply wait for their lawsuit’s final settlement, at which point their financial responsibility comes into play.
Understanding the Plaintiff’s Obligation
Initially, the plaintiff isn’t required to pay a single cent. It’s as if they’re receiving a monetary gift without any strings attached. However, if they win their lawsuit, they must share a percentage of their settlement with the lawsuit funding company. The amount the plaintiff repays depends on the case outcome – if they receive a minimal settlement, they’re not obliged to pay more than what they’ve been awarded.
What Happens if the Plaintiff Loses the Case?
In any legal battle, the outcome is never guaranteed. Despite receiving financial support to pursue their case, the plaintiff might still lose. In this situation, what is their obligation to the lawsuit funding company? The answer is simple: nothing. This is one of the key advantages of lawsuit funding – plaintiffs are not required to repay anything if they don’t win their lawsuit.
Unraveling the Mystery of Lawsuit Funding
Although lawsuit funding continues to gain traction, many people are still unsure about how it works. To obtain pre-settlement funding, a few key elements are required: a lawsuit funding company, a plaintiff, a legal case, and an attorney. The following explanation breaks down the process step by step.
Lawsuit funding companies commonly assist plaintiffs involved in cases related to:
- Physical injuries, such as truck or car accidents
- Racial discrimination
- Nursing home conflicts
- Hospital malpractice
- Police misconduct
In order to secure pre-settlement funding, the plaintiff must first apply with the assistance of their attorney. After submitting the application, the lawsuit funding company will get in touch with the plaintiff’s lawyer to review the specifics of the case. Based on this information, the company will decide whether to approve or reject the pre-settlement funding request.
If the plaintiff’s application is approved, the lawsuit funding company will determine a suitable funding amount for the case. With this financial backing, the plaintiff can confidently proceed with their legal pursuit.