Pre-Lawsuit Funding for a Personal Injury Case

In many cases, someone who has suffered an injury needs immediate financial recourse.  As lawsuits can take several months – if not many years – to make it through the system, this just isn’t feasible for someone who is facing mounting medical bills and loss of work.  In this case, pre-lawsuit funding may be a possibility.

Pre-lawsuit funding is a form of advance, in which the plaintiff is paid an advance based on what can eventually gained from the settlement.  If no settlement is reached, the plaintiff will owe nothing.  Pre-lawsuit funding works through a specialized loan company that will give money to the plaintiff upfront, either in monthly installments or one flat fee.  It should be no surprise that a loan company entering into a pre-lawsuit funding agreement will want to be certain that a settlement can be reached.  Because of this, the strongest cases can have pre-lawsuit funding attached.

Once a settlement is reached, the plaintiff will pay off the loan and any resulting fees from the final settlement.  As there are fees associated with the loan (as is the case with any loan) the settlement will be lower than the quoted number, but without the initial re-lawsuit funding it is quite possible that the plaintiff would not have been able to stay financially afloat.  Because of this it is a very good option for some litigants, especially those who have a solid case that will result in a settlement above the terms of the initial loan.

Pre-lawsuit funding can be anywhere between $500 and $100,000, so you should look into funding even if you have lesser financial needs, in addition to those who are facing major financial difficulty.