Post-settlement funding is a monetary product available to plaintiffs and lawyers after litigation attains a resolution and is risk-free. This funding is often referred to as a lawsuit or a settled lawsuit loan, but post-settlement loans are not loans. All resolved case funding is non-recourse. This implies that there are no monthly expenditures, and there is no risk either. If the defendant defaults on fees, you will not be required to repay your advance until you accumulate from the defendant.
Whether you are a plaintiff seeking to leverage your payment or you are a lawyer looking to leverage your contingency expenses, post-settlement funding lets you secure upfront capital against a forthcoming settlement award.
Why Consider Post-Settlement Funding?
When your case has been settled, but you still find yourself struggling to fulfill all your payments, post-settlement funding offers one risk-free route to obtaining cash now without resorting to a conventional bank loan.
This non-recourse tool can also be helpful if you are unable to qualify for a regular loan. With this funding, there is no credit check, and you would not be required to ascertain your income or prove employment status.
What Are The Advantages of Post-Settlement Funding?
The speed of delivery is possibly the key benefit of settlement funding, with funds made obtainable twenty-four hours after application. Unfortunately, several personal injury cases can take months or even years to settle. Mass tort lawsuits and class actions drag on even longer as they generally encompass multiple jurisdictions. Commercial litigation funding is also complex and protracted.
Even when the case has been settled, you could still encounter a lengthy wait for your money. Lawsuits awarded in court sometimes call for a review period, and they will go through an appeal. While the costs keep mounting for the plaintiff. Thus, a settlement loan could bridge the gap if the person has a settled claim and you are waiting to receive payment from litigation.
How Can One Qualify for Post-Settlement Funding?
For qualifying as post-settlement funding, the person should be the plaintiff in the case, not the defendant. They also need to have had a claim awarded along with an anticipated settlement by way of compensation.
These cases qualify for post-settlement funding:
- Motorcycle accidents
- Car accidents
- Pedestrian accidents
- Product liability
- Medical malpractice
Once the case has been settled, you will know how much payment you can expect. You will require to assemble the following:
- Quantity of funding you are requesting from the lending firm
- Letter from your lawyer stating how much the case settled for
- Copy of executed general release
- Copy of letter from your lawyer to the insurance company summarizing their obligation
The more responsive the lawyer handles the documentation, the sooner you can obtain post-settlement funding.