A personal injury can occur due to a variety of circumstances, such as car accidents, slip and falls, and workplace injuries. In many cases, the injured party is entitled to compensation for their damages, which can include medical bills, lost wages, and pain and suffering. However, the legal process can take time, and the injured party may not receive their settlement for months or even years.
Personal injury financing, also known as lawsuit funding, provides a solution for those who need financial assistance during this waiting period. This type of financing allows plaintiffs to access a portion of their settlement before it’s finalized, which can be a game-changer for those struggling to make ends meet.
What is Personal Injury Settlement Financing?
Personal injury settlement financing is a financial transaction between a plaintiff and a funding company. The plaintiff receives a cash advance, which is repaid once the settlement is received. Essentially, the funding company is providing a loan based on the potential outcome of the plaintiff’s case.
How Does Personal Injury Settlement Financing Work?
To qualify for personal injury settlement financing, the plaintiff must have a valid personal injury case. Once the plaintiff has applied for financing and been approved, the funding company will review the case to determine the potential settlement amount.
If the funding company believes the plaintiff has a strong case, they will provide a cash advance based on a percentage of the potential settlement. The percentage can vary, but it’s typically between 10% and 20% of the expected settlement amount.
Once the case is settled, the plaintiff’s attorney will receive the settlement check, and the funding company will be paid back their advance plus any fees or interest. If the plaintiff loses the case, they typically do not have to repay the advance.
The Benefits of Personal Injury Financing
The primary benefit of personal injury settlement financing is that it provides financial assistance to those who need it. When dealing with a personal injury, the injured party may be unable to work, which can make it difficult to pay bills and cover medical expenses. Settlement financing can provide the funds needed to cover these costs while waiting for the case to settle.
Another benefit is that personal injury settlement financing is non-recourse, meaning that if the plaintiff loses the case, they do not have to repay the advance. This takes the financial risk off the plaintiff and puts it on the funding company.
Additionally, personal injury settlement financing does not require any collateral, such as a home or car. The funding company is providing the advance based on the potential settlement, not on the plaintiff’s personal assets.
Conclusion
Dealing with a personal injury can be a difficult and trying time. Personal injury settlement financing can provide the financial assistance needed to help plaintiffs get through this challenging period. By providing a non-recourse advance based on the potential settlement, settlement financing can take the financial burden off the plaintiff and put it on the funding company. If you’re dealing with a personal injury and are struggling to make ends meet, consider personal injury settlement financing as an option to help you get the compensation you deserve.