Legal Funding has been around for over two decades now and several thousand Americans have derived benefit from this legal funding method. For those who do not qualify for another form of debt, the legal finance presents itself as an excellent alternative. This is particularly so, because there is no income verification or credit check required to qualify for lawsuit cash advance. Your attorney’s assessment of the lawsuit and a projected settlement will be the major considerations before the lender.
Here is a brief outline of how legal finance works for you:-
• A client with a personal injury lawsuit, workplace injury lawsuit, or car accident lawsuit etc. is waiting for a settlement. Often times, this client is cash strapped because he has been out of work consequent to the accident. At times, it could also be that a potential client smells the opportunity to grab a windfall.
• The client contacts a litigation funding company and in consultation with the client’s attorney determines the feasibility of the case being settled in favor of the client and the projected payout. Obviously, the lender will only consider the most promising cases.
• When the company decides to approve the funding, the lender and the attorney negotiate the terms of the funding including the amount, duration and interest/fees. After this, a contract is signed.
• When the client wins the suit, the lender is reimbursed from the settlement along with the interest and a hefty fee.
• If the client fails to win the suit, he owes nothing to the lender, not even the principal amount. In another scenario, if the settlement is less than expected, the attorney tries to negotiate a lower fee from the lender.
More importantly, it should be remembered that one third of any settlement is reserved towards the attorney’s fee and another one third is ear marked for medical expenses. The lender takes into consideration only the remainder and the actual legal funding can potentially be less than one third of the total claim.
Questions to Ask
As a client the following are the major questions that you would want to consider
• How long would be the wait for settlement – If the settlement is expected to take too long, your litigation funding would become pretty expensive because interest charges will add up.
• Is there an alternative to lawsuit settlement loan – Do you have another option that could be softer – consider friends/relatives. Is a second job on your radar or if you are out of employment, how good are the prospects of finding another job?
Things to consider
Important aspects to strongly take into account when considering a legal funding. A lawsuit cash advance can be called many things; a legal lien, legal funding, a non-recourse finance, etc… But what it is not and is commonly confused are; lawsuit loan or payday loan which regardless of the outcome of your case must be repaid. Furthermore those type of loans require background, employment and credit checks. Pegasus Funding does not offer a lawsuit loan nor a payday loan, we offer non-recourse cash advances that do not require any background or credit checks at all. And we assume all the risk, if you lose your case you owe us nothing!
Call us: 855-FUND-YOU / 855-386-3968
.:About the author:.
James Sheridan is the Contracts Manager at Pegasus Legal Funding LLC and is responsible for the final stage of the funding approval process. James focus and priority is delivering to PLF’s clients the funds they need as quickly as possible