Lawsuit funding is an alternative to direct cash payments for immediate help
Despite unprecedented government assistance in 2020, many American families are still struggling to make ends meet. Those who are unable to work or lost their jobs due to the pandemic have most likely a lot of due bills, and rent that will soon be due to the landlord. Easy access to immediate credit is often a challenge to those workers, especially with a lower credit score and no banking relationship.
Victims of personal injury accidents can use lawsuit funding as a creative solution for money problems. Through legal funding, plaintiffs can access their to their settlement amount
before the actual settlement is signed. The process is very simple – through a short qualification process, a funding company will provide a small cash amount of the future settlement to the applicant with the case. Once the case settles, the attorney pays the funder the amount+interest and if the case is lost, the plaintiff gets to keep the advance.
Any plaintiff who was injured as a result of someone else’s fault can apply for legal funding. For example, if you have an attorney representing you against an insurance company as a result of a motor vehicle accident, you can qualify for a cash advance. You can get up to 10% of your future settlement value, and pay back once the case is settled.
This creative type of legal financing is not without risks – the payback could be expensive and you still have to qualify in order to get the advance. On average, a $1000 advance will have a $1,450 total payback bill after 1 year. While this is obviously a lot higher than a mortgage, this type of financing is not subject to any credit checks, requires no upfront fees, no hard collateral, and no income verification. If you are about to get evicted and need cash fast – legal funding might be a viable solution to meet an urgent need in your life – like a mortgage payment, rent, or medical bills.