The Obligation of the Plaintiff
At first, the plaintiff will be required to pay nothing at all. It is as if he is receiving a sum of money without the company asking for anything. Nonetheless, if he wins the lawsuit, then he is required to share a portion of his settlement to the lawsuit loan company. If he only receives a small amount of money from the final verdict, then the lawsuit loan company cannot force him to pay them more than what he receives. Therefore, the amount of money that the plaintiff is obliged to pay the lawsuit loan company depends upon the final verdict.
What if the Plaintiff Did Not Win the Case?
Of course, in every lawsuit, there is no certainty as to which side will win. Therefore, despite getting the amount of money that the plaintiff needs to push through the case, there is still no guarantee that he will win it. So, how much is he required to pay the company if he loses the case? Well, he is obliged to pay nothing at all. That is the best thing about lawsuit funding. The plaintiff is not obliged to pay anything if he gets nothing from the lawsuit.
How Does Lawsuit Funding Work?
Many people are still unaware of how lawsuit loans work despite their popularity. In order to have a pre settlement funding scheme, there should be a lawsuit loan company, a plaintiff, a legal case, and of course, a lawyer. The next paragraph will tell you how a lawsuit loan really works.
The company will fund the legal case of a plaintiff who is suffering from cases that involve physical injuries – such as truck accidents and car accidents -and other cases – such as lawyer malpractice cases, nursing home cases, hospital malpractice, prison cases and police misconduct case. Of course, in order to get a pre settlement funding from a company, the plaintiff must apply for it first under the legal advice of their attorney.
The next thing that will happen is that the lawsuit loan company will call your lawyer to ask for the details of the legal case. From the details given by your lawyer, the lawsuit funding company will discern whether to give your request approval or not. If you get an approved lawsuit funding, the company will also decide as to how much money they should finance for your lawsuit. Of course, you will always get the reasonable amount of money that you need in order to pursue your lawsuit.