Individuals with a pending personal injury lawsuit may qualify for settlement funding in order to pay their bills while waiting for a verdict in their lawsuit. Lawsuits typically eligible for funding include car accidents, construction accidents, or any other personal injury accidents. Settlement funding is basically an advance which is paid back along with any fees for the advance when the plaintiff actually receives payment of their settlement.
A settlement loan is a no risk loan for the injured party because if no settlement is received, the loan does not have to be repaid. Because of this, settlement loan providers will contact the personal injury attorney for more information about the strength of the case and the value of the likely settlement before agreeing to provide the loan. Injured parties who request an advance must have a convincing case with clear damages which they are requesting to be compensated for, such as time lost from work or severe personal injuries. The defendant in the personal injury lawsuit must also have the ability to pay the damages awarded to the injured party.
In most states, attorneys are not permitted to advance settlement funding to their clients even though the client clearly has an excellent chance of being awarded a large settlement. This can be frustrating to attorneys who see clients falling behind on mortgage payments and car payments through no fault of their own. Most attorneys are happy to provide settlement funding companies the information needed to process the loan, as they do not wish their clients to accept a lower settlement offered early on because of pressing bills.
Settlement funding is only available to clients whose attorneys are working on a contingency fee basis. Attorneys working on a contingency basis have every incentive to obtain the highest possible settlement for their clients, but this may take years. Most people injured in an accident do not have the savings to hold them over until they receive their settlement, so finding a way to get cash quickly can be a huge help. Settlement funding can provide enough money so anyone waiting for a settlement does not have to suffer financially because of an accident that was not their fault.