What will influence your chances of receiving a lawsuit funding?

Apr 22, 2019 by

If you have sustained an injury due to someone else’s negligence, you have the right to file a lawsuit. The typical personal injury lawsuit in the US can continue for a few months or even a couple of years, despite the plethora of evidence the defendant’s lawyer produces. During the wait, it is only reasonable for the injured party to suffer financial loss. Whether you are paying hundreds of dollars towards treatment and therapy or simply going through a period of unemployment, there will come a time when your finances will take a hit.

That is the time most people opt for lawsuit funding. Traveling door to door with the hope of receiving pre-settlement loan can be harrowing. Knowing about the factors that influence one’s chances of receiving lawsuit funding can help you seek help from the right place – what is the amount you can receive, what are the qualifying factors and when you will receive the money. Knowing these few factors will help you find the best lawsuit funding company.

Here are some of the factors you need to consider before applying for a lawsuit funding –

  1. What is your share of the liability?

The underlying liability of the case will determine if you will receive funding from a particular settlement funding agency. Accountability defines the responsibility of a person for a particular accident or mishap. For example – if a person slips and falls on a wet floor, the circumstances will determine who is more responsible for the injury resulting from the fall. If the owner of the property had put up signs around the wet floor warning people of the risk, then the liability of the owner is significantly less.

As you can understand, the higher liability of the plaintiff implies a better chance of winning for the defendant. When the opportunity of you winning a lawsuit is high, you will find it easier to secure a lawsuit funding from a registered company.

  1. Does the company fund cases like yours?

Most lawsuit funding companies only fund certain types of cases including personal injury, medical malpractice, and false imprisonment. If your lawsuit does not fall in any of these categories, you need to look for another source of funding. The recognized settlement loan companies do not deviate from the norm when it comes to funding lawsuits.

You can speak with your attorney to find out what kind of pre-settlement funding your case can qualify for. For more details on the different types of litigation, funds check out the official website of Prime Case Funding.

  1. What is the amount you can expect?

Several factors influence the net amount you can expect as your lawsuit fund. The estimated value depends upon your case value. The higher one’s case value, the higher the amount you can expect from your lawsuit funding company. Among all the variables, here are the two that has the maximum impact on the value of the funding –

  1. Damage – When you suffer from injury, pain and emotional trauma due to the misdeeds or negligence of another person, you are entitled to compensation. Higher the damage, higher is the compensation you can exact from the guilty party. Therefore, higher the pain and suffering, higher is your chance of receiving a lump sum from the lawsuit funding company.
  1. Insurance – The value of the insurance policy of the plaintiff influences the cost of your case. Higher the value of the insurance policy, high is your chance to receive a significant settlement advance. For example – plaintiffs injured on the premise of a business always receive higher compensation than those injured on private premises. That is because commercial insurance policies typically have higher payouts as compared to personal insurance policies.
  1. How many lawsuit funding companies are you working with?

Research shows that plaintiffs, who already have multiple settlement loans have lower chances of receiving a new one. While some companies offer loan consolidation services before offering lawsuit funding to the applicant, it is quite rare to find such a company. That is because when multiple lawsuit companies already own the rights to the settlement you will be receiving from the guilty party in the near future, there is rarely any room for additional liens. To ensure your chances of receiving a lawsuit fund, always shortlist your choices, send out your applications and pick the best offer.

  1. Is your lawyer working on a contingency basis?

It is imperative for all applicants to have an attorney on the case. That will also help the applicant procure and produce the right paperwork for the advance. Most importantly, your attorney should be working on your claim on the basis of a contingency fee. That means he or she should agree to work for a fixed percentage of the settlement and the attorney must not take any payment during the trial.

If you have an attorney, but he or she is not working based on a contingency fee agreement, then you might face some difficulty convincing the lawsuit funding agencies to consider your case. In case you are having trouble finding an attorney, you can contact the Bar Association of your state to find one.

Experts often refer to these funds as lawsuit loans, settlement loans, and pre-settlement funding. The working principle of a lawsuit funding agency is quite simple – they give you an advance on the money you already deserve from the liable party. Since they evaluate a case by its strength, there is a high chance that the cases they fund will win. However, in the unfortunate event of the defendant’s loss, he or she does not have to pay the amount back to the lawsuit funding company. Therefore, the fund is not a traditional loan, but a non-recourse advance.

You can use the cash from the advance to continue treatment, pay for family expenses, or pay for the daily expenses. This loan can enable you to return to your normal life even before your trial ends and you receive the settlement you deserve.

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