When is Settlement Funding Necessary & Appropriate?

As most of us know, there are no free rides.  At least not over a long period of time.  Settlement funding is necessary and appropriate in cases that drag on for an extended period of time.  Many of these cases can go on for years before a resolution is reached.  During this extended period of time that a case is pending the plaintiff must pay mounting legal fees and also have enough money left to live on. This can add huge pressure on a plaintiff.  If the plaintiff is unable to work, has a smaller income, or has higher care expenses it might become impossible to exist while waiting for the lawsuit to end.

How much does settlement funding cost?

As with any loan, there are fees involved with all cash advance settlement loans.  Since there is some risk involved in providing the funds there is cost associated with settlement funding loans. However, the cost is usually worth it to plaintiffs who are struggling to keep their case alive, while keeping a healthy quality of life.  Settlement funding companies review your case in depth and will only offer funding if the case has a high chance of coming to a positive conclusion.  This is done to minimize the company’s risk in making the loan.

It is important for plaintiffs to find the right settlement loan company before entering into an agreement for a cash advance.  It is advised to check with several companies to obtain the most favorable lawsuit funding terms.

Can my lawyer fund my case?

This is a typical question many plaintiffs ask regarding settlement funding.  The answer to this question is lawyers are prevented from providing fund to their clients.  State bar associations prevent such funding as it is believed when a lawyer becomes a funder to one of their clients; a conflict of interest is present that may change the relationship between an attorney and their client.  Since legally this relationship is meant to be preserved at all costs, no funding can come from a plaintiff’s legal counsel.

Typically the lawyer is involved with the settlement funding company to communicate information about the case as the company reviews the merits of the case.  This must be done to determine if the plaintiff can qualify for funding.  Also, many lawyers can suggest settlement funding companies to their clients.