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The Process of Securing Pre-Settlement Funding
Pre-settlement funding involves application, case evaluation, approval, receiving funds, use of funds, and repayment or no repayment.
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Securing pre-settlement funding involves several steps, from application to receiving funds. This article provides a detailed walkthrough of the process, helping plaintiffs understand what to expect.
Step-by-Step Process
- Initial Application
- Information Gathering: Plaintiffs provide basic information about their case, including the type of lawsuit, expected settlement amount, and attorney contact details.
- Submitting the Application: Applications can typically be submitted online or via phone.
- Case Evaluation
- Review by Funding Company: The funding company evaluates the case's merits, considering factors such as the strength of the evidence, liability, and potential damages.
- Consultation with Attorney: The funding company often consults with the plaintiff's attorney to gather additional information and assess the likelihood of a successful outcome.
- Approval and Offer
- Decision: If the case is deemed strong, the funding company approves the application.
- Funding Offer: The company presents an offer, detailing the advance amount, fees, and repayment terms. Plaintiffs should review this offer carefully and consult with their attorney before accepting.
- Receiving Funds
- Signing the Agreement: Plaintiffs sign a contract agreeing to the terms of the funding.
- Disbursement: Funds are typically disbursed within a few days via direct deposit or check.
- Use of Funds
- Covering Expenses: Plaintiffs use the advance to cover medical bills, living expenses, and other costs.
- Repayment
- Settlement or Judgment: When the case settles or results in a favorable judgment, the plaintiff's attorney repays the funding company from the settlement proceeds.
- No Repayment if Lost: If the plaintiff loses the case, no repayment is required.
Understanding the process of securing pre-settlement funding helps plaintiffs navigate the application and approval stages more effectively. By following these steps, plaintiffs can access the financial support they need during their legal journey.
