All Risks Of Pre-Settlement Funding Are On Lenders And Not The Plaintiff
Pre-settlement funding is a financial arrangement between a legal funding company and a plaintiff involved in a lawsuit. The funding company provides the plaintiff with a sum of money to use as needed, without dictating how it should be spent. This financial support can be used for anything from covering mortgage payments, medical bills, legal fees, or everyday expenses.
Although legal funding carries some inherent risks, the burden of these risks is primarily on the funding company. Essentially, the company assumes all the potential financial pitfalls of pre-settlement funding, so there is no need for the plaintiff to feel apprehensive about pursuing this option. The primary concern for the plaintiff should be winning the case and securing a pre-settlement loan as a cash advance.
The Reasons Behind Legal Funding Companies
Many wonder why legal funding companies are willing to provide financial support to plaintiffs in need. There are two main reasons for this. The first is the pursuit of justice. Numerous plaintiffs have lost their cases due to insufficient funds. Legal funding companies aim to level the playing field by offering pre-settlement funding to those who lack the means to finance their lawsuits. By doing so, they help ensure that justice is served.
The second reason is the potential for profit. While legal funding companies do face significant risks, they also stand to gain financially if their client wins the case. Both the client and the funding company benefit from a successful lawsuit outcome.
Strategies for Winning Your Case
Even though clients are not obligated to repay the legal funding company if they lose their lawsuit, most plaintiffs still want to win for personal satisfaction and justice. To increase the odds of a favorable outcome, it’s essential to secure adequate funding to support the lawsuit and hire the best possible legal representation.
The Scope of Pre-Settlement Funding
It’s important to note that pre-settlement funding is not available for all types of cases. Generally, it’s limited to specific situations, with personal injury cases being the most common. Other cases that may be eligible for lawsuit funding include wrongful discrimination, mesothelioma claims, property damage, fire damage, and bus accidents.
In summary, pre-settlement funding offers a valuable lifeline to plaintiffs who need financial support while pursuing their legal case. With the risks borne by the legal funding company and the potential for both parties to benefit from a successful outcome, it’s an option worth considering for those in need.