Litigation funding is often referred to as a “lawsuit loan,” but in reality, this type of funding isn’t a loan at all. Pre-settlement funding is actually a cash advance toward a potential future settlement. Basically, a lawsuit loan company will buy a portion of the proceeds of a pending settlement from a plaintiff before the settlement is even finished. The plaintiff is only obligated to pay this money back to the company if they win their settlement and are awarded funds as expected. If they end up losing the lawsuit, the plaintiff usually has no obligation to re-pay any of the money. All of the risk lies with the lawsuit loan company, making litigation funding an excellent opportunity for a plaintiff to pursue.
Who is eligible for a lawsuit cash advance? There are dozens of different types of cases that can yield pre-settlement funding, but below are a few of the most popular:
-Employment Discrimination Cases
If a plaintiff was discriminated against in the workplace, it can often mean a lawsuit and a big cash settlement. Why wait for the legal system to award the money when it can be obtained in as little as 24 hours from a litigation loan business?
Why settle your case in an asbestos lawsuit when waiting it out for a trial might mean a bigger payday? If you want to hold out for the maximum possible award in your favor – and it’s a good idea to do so – the money provided by a lawsuit cash advance company can help you keep your head above the water until your big payday comes through.
-Motor Vehicle Injury Cases
Those unfortunate enough to be in an accident they didn’t cause or to be struck by an errant or drunk driver usually have a good case in court. Sadly, these people are also left at home or in the hospital to recuperate from their injuries, and they often don’t have the ability to go into work where they can make money to pay for their living expenses. With medical bills from an accident piling up, a lawsuit cash advance can be a true blessing until the case is resolved in court.
Do you fall into one of the above categories? If so, you should definitely consider pursuing litigation funding. If you don’t win your case, you aren’t on the hook to pay back the money, so you have nothing to lose. Even if you do not fall into one of the three areas discussed above, there is still an excellent chance that you might be eligible for pre-settlement funding. There are literally dozens of types of cases that lawsuit loan companies cater to, so be sure to consult with an expert about your particular case.
Jake Alexander is a part of an elite team of writers who have contributed to hundreds of blogs and news sites. Follow him @JakeAlexander17.