How to make the right choice for pre-settlement funding?
What happens after a person slips and falls on someone else’s property? What follows a workplace injury that renders a person bedridden for weeks? Doctor’s visits, expensive medication, trauma counseling, and therapy are unavoidable after a personal injury. Most US citizens have to deal with hefty expenses during these times that their insurance policies should cover. Many even deal with life-long disabilities and chronic pain that disable them or make them unable to earn a living. Such situations demand personal injury lawsuits.
Why is pre-settlement lawsuit funding necessary?
The bitter truth is that personal injury lawsuits are expensive. Apart from shouldering the expense of the various therapies and medication, the victims or their family have to worry about the legal costs. That can deter a significant portion of the deserving individuals from ever filing lawsuits against the owner of the premises, where the accident occurred. So, does that mean the victims and their families never see any compensation for their pain and suffering?
Where can you find lawsuit funding?
Lawsuit funding companies now exist that help such victims and their families access funds necessary for filing a lawsuit. It is a no-risk loan, which the defendant can access before winning a settlement. Therefore, these lawsuit funding companies assume that the client will win the lawsuit. When the client wins the case, only then the company receives the repayment along with a predetermined interest. In the unfortunate event of the client’s loss, he or she does not have an obligation to repay the “debt.”
How do lawsuit funding companies provide funding?
The lawsuit funding companies typically evaluate the client’s chance of winning the lawsuit before dishing out the funds. It is a complex process that requires the presence and participation of the client’s personal injury attorney, and the plaintiff’s legal counsel, along with the evaluation of the entirety of the court’s legal documents. Every authentic lawsuit funding company weighs the pros and cons of lending money to the potential client.
How to find a lawsuit funding company?
Since there are hundreds of lawsuit funding agencies working across the US at the moment, finding the right company can become challenging. Working with a lawsuit financing company that genuinely wants to help their clients can make all the difference in your personal injury lawsuit.
Here’s what you need to look for in a lawsuit funding company –
Always look for low rates
Some lawsuit companies have different rates. Their interest rate depends on the type of case and the seriousness of it. The risk, likeliness of winning and the amount directly influence the interest rate. Any company with a flat rate of interest for all cases typically has a higher interest rate. If you are working with a similar funding company, make sure that you get the best flat interest rate possible for your case. You should get an estimated rate after the underwriting is complete.
There should be transparency
Although most people don’t believe it, lawsuit funding should be a simple process. Your lawsuit funding company should draft agreements on clear terms. You should work with your attorney to understand the terms of the contract before you sign it. The draft should be fair and straightforward. You can always bring your attorney along during the initial phases of drafting and discussion. It will add transparency to the entire process.
The process of funding should be rapid and easy
After facing an injury and filing a lawsuit, the last thing one needs is additional red tape. Visit PCFMoney.com to learn about the process of funding. The application should be fairly straightforward. The leading lawsuit funding companies provide funding for their clients within 24 hours after the case review. Since the approval process depends on a person’s likelihood to win a personal injury lawsuit, the process is more efficient than traditional loans.
Compare the pricing of different companies
Once you know what lawsuit funding is and you know about the rates of interest they can charge, it is time to begin shopping around. Choosing a lawsuit funding source is similar to selecting a loan provider. You need to select qualifying candidates and compare the services they provide. Compare their application process and fee, check their compounding interest rates, find out about their history of lending and check their reviews. Their genuine client testimonials should give you a clue about their working and the quality of service you can expect.
Always involve your personal injury lawyer
Personal injury lawyers have a good understanding of the lawsuit funding agencies in town. There is a good chance that he or she has already worked with the company you are shortlisting. Consulting your personal injury lawyer during the searching phase should help you find a lawsuit funding company that genuinely cares about their clients. Most importantly, it will help you eliminate any conflict of interest that might arise if the company you pick has financial ties to the medical expert working on your case or the legal firm you are working with.
Most workplace injuries and slip-and-fall injuries occur due to the negligence of another person. It is only just to seek compensation for the physical pain and emotional trauma a person goes through in such circumstances. It is only natural for people to trust their attorneys to win the best possible settlement, but such personal injury lawsuits can continue for months or even years. During such trying times, it is common for people to face financial distress that arises from steep medical bills and therapy costs. The lack of the ability to work also reduces the net earnings of an individual and his or her family.
No matter how strong your case is, waiting for months or years will lead to financial hardships. While waiting for the settlement to come through, the victims should have access to funds for their daily needs, including medical expenses. The option of applying for lawsuit funding can alleviate the fiscal deficits of a family. Qualifying for funding should be easy once you have hired an attorney and there is an ongoing trial seeking compensation for your sufferings.