Lawsuit Liens and Law Cash Advance Funding Information


Plaintiffs seeking lawsuit cash advance funding typically have questions regarding the funding for their pending lawsuit. Typically when a plaintiff applies for funding with a reputable lawsuit cash advance funding company like Alliance Claim Funding, they have a consulted with their attorney and feel their case is strong enough to secure funding.

There are various issues involved with lawsuit cash advance funding that require some explanation.  Most personal injury cases have some kind of liens attached to them.  The first lien attached is usually an attorney’s fee that is paid to the counsel when the settlement is reached.  This is always taken into account when a lawsuit is reviewed for lawsuit cash advance funding.  Here are some other possible liens involved in a plaintiff’s lawsuit:

Attorney’s Fees –  As we mentioned, liens and contingency fees are common with litigation funding since most cases that are approved for funding are personal injury cases.  This kind of funding is approved by most state bar associations because it can help an injured party access the legal system. Most attorney’s have the first lien, which is paid prior to the plaintiff receiving any funds from the settlement.

Letters of Protection for Medical Services – Another kind of lien that is common in personal injury cases is an “LOP”, which is a letter of protection.  These letters are written by the attorney to medial providers who have treated the injured party. They can be for surgery, therapy, chiropractic, or any other type of medical treatment.  This letter serves as a guarantee that the medical provider will be paid out of the funds from the settlement and that the attorney will “protect” these funds for medical bills at the time of settlement.

Workers Compensation – In some worker’s compensation cases that involve the negligence of another person, company or legal entity (a third party), a lien is placed on the settlement funds for the total of benefits paid by the state. If an employee is hurt while working, the workers compensation insurance pays the benefits to the employee which includes the worker’s medical costs.  If the personal injury is caused by third party the insurance company has a right to receive proceeds to cover money spent.

Medicaid – These liens are similar to workers comp liens where those who pay for medical bills want reimbursement.  When Medicaid is involved, the Federal government seeks reimbursement for payments and places a lien on the settlement funds.
Social Security Disability  –  These liens are similar to Medicaid and the Federal government requests repayment for all SSDI benefits paid, if the injury is caused by negligence.

Lawsuit Cash Advance – Liens for lawsuit cash advance funding and the priority of these liens in the structure of the case is many times determined by state law.  Since these are voluntary loans between two parties a funding company might choose not to fund a case if there are already large liens present.

Lawsuit cash advance funding is available to help plaintiffs stay afloat financially while waiting for a case settlement.  These funds can be a huge help to those personal injury plaintiffs who want to wait for the case to wind through the legal system, which helps receive the largest settlement.