The Truth About Lawsuit Funding

February 27, 2015, on Articles | Share

Pre-settlement funding is becoming increasingly popular as more people are dealing with legal claims that seem to be in a “pending” status for several months or even years at a time. Popularity, however, often brings about misconceptions and/or misinformation.

As more people look for financial assistance while they await resolution to their cases, it is crucial for them to gain a better and accurate understanding of how Florida lawsuit funding can help them. Whether you are in Florida or elsewhere in the country, pre-settlement funding may be a viable option for you and your family — but you should know the facts.

First Misconception: Money Received From Lawsuit Funding Will Have to Be Repaid, Even if the Case is Lost

Based on some of the characteristics of lawsuit funding, it is not surprising many people believe it to be a loan that will ultimately need to be repaid. In fact, at first glance, it may appear to be quite similar to an unsecured loan that would be obtained from a traditional bank or lender. However, it is important for individuals to understand lawsuit funding differs greatly from standard loans — primary difference being that loans will always have to be repaid, usually through monthly payments, while pre-settlement or lawsuit advances do not require repayment if the case is lost.

Lawsuit funding can help those involved in lengthy, drawn out personal injury cases meet their financial obligations while they await case resolution. Lawsuits have become extremely expensive over the years and waiting for months or even years can be trying on a family’s finances as they try to make ends meet.

Instead of struggling, individuals can apply for an advance on what they expect to recover once the case is complete. If approved, the applicant can obtain funds as quickly as the same day. If the applicant loses his or her case after funding has been obtained, he or she will owe nothing — payback is only required upon the case ending with a successful recovery.

Second Misconception: Lawsuit Funding Can Negatively Affect a Plaintiff’s Case

Some people are hesitant to look into obtaining lawsuit funding because they believe it may have an adverse effect on the outcome of their cases or the legal process in general. This is because some people think once they obtain the services of a funding company, the company will pressure the attorney handling the case to hurry and settle the case.

However, that couldn’t be further from the truth. In fact, lawsuit funding allows injured plaintiffs to take their time and not be rushed into taking low settlements or unfair offers. It allows them to pursue justice and fair compensation for their injuries. Looking at it from that point of view, funding can actually have a very positive impact on one’s case.

Third Misconception: Lawsuit Funding Companies Take Advantage of Injured Parties

Some believe lawsuit funding companies take advantage of injured individuals at a time when they are most vulnerable. However, that is not true. Lawsuit funding gives plaintiffs awaiting an outcome to their case the ability to pay their bills and meet their monthly financial obligations. Meeting such needs is often a serious challenge for many, but obtaining a small advance on anticipated compensation can save the injury victim’s home from going into foreclosure or can cover much needed medical care

There is absolutely no pressure to obtain or even seek lawsuit funding. It is, however, important to understand that there are options available for those awaiting resolutions to their cases. If you would like to learn more about legal funding in your area, contact Injury Funds Now by calling 1-866-68-FUNDS (38637) or for fastest service, complete our short online application.