Lawsuit funding is not really a legal concept. It is simply a term used to refer to the services of an attorney or law firm that assist injured parties in paying their legal bills and other expenses associated with a lawsuit. Litigation funding companies usually fall into two categories: commercial and consumer. Commercial lawsuit funding, often called lawsuit cash, settlement loans and claim financing, are a highly regulated industry which often lends money to injured party plaintiffs only after their lawsuits are resolved.
Injuries brought about by medical malpractice are eligible for lawsuit funding. Medical bills, surgery expenses, prescription drugs, and the cost of continuing care for an injured party are all considered valid expenses. These types of injuries are often difficult to prove, especially when there is no evidence of negligence on the part of the medical provider. This is why lawsuit funding companies work diligently to assist plaintiffs in meeting these expenses. It is also important to note that plaintiffs who obtain pre-settlement loans do not have to repay them if they lose their case. This means that the money can be used for living expenses and other similar bills. For more details about this service click at https://lawsuitssettlementfunding.com/.
The second category of lawsuit funding involves consumers who seek lawsuit settlement advances to cover the costs of going to court. While this type of funding does not help those who file frivolous lawsuits, those who do are often unable to pay for living expenses and other bills while waiting for a court date. Such plaintiffs may also need cash to make home repairs or buy food, since many people are short on funds due to the current state of the economy. Legal Bay Lawsuit Funding settlement advance is often used to settle day-to-day financial obligations prior to a lawsuit being filed.
Lawsuit funding companies will provide both lawsuit advances and lawsuit funding loans. If you're eligible for either type of loan, your attorney will be able to discuss payment plans with your medical malpractice attorney. There are both secured and unsecured loans available from this type of company. Secured loans require the borrower to put up collateral, such as property, in case they don't repay the loan. Unsecured loans are typically made without collateral and are generally offered by non-profit companies that do not place any kind of obligation on the individuals who avail of their services.
Lawsuit loans and settlement loans are usually based on a percentage of one's potential settlement amount. In order to receive either type of loan, it is often necessary to submit detailed medical records documenting the conditions and circumstances behind your lawsuit. Your attorney will submit these documents to the companies offering pre-settlement funding. Some of the companies who offer this type of legal funding are Paysase, LLC, and ADR Funding, among others. When applying for either type of loan, be sure to carefully read the terms of the agreement. Because pre-settlement funding companies often purchase plaintiffs' cases at a discounted rate, many require a percentage interest rate in addition to the settlement amount.
Lawsuit loans and settlement loans provide a source of cash for plaintiffs who are in financial need but do not have access to traditional forms of legal financing. To receive either type of lawsuit advance, the plaintiff must meet the qualifications established by each company. To learn more about the process of obtaining a lawsuit advance and whether or not a plaintiff may qualify, contact an attorney who specializes in this type of legal finance.
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