Lawsuit Loans: Does Your Case Have What it Takes to Qualify? Part I
We previously discussed the fact that the term lawsuit loan is a misnomer. It is not a loan at all! The correct term would be settlement funding, funding that is provided in advance of settling your claim. Many view this type of funding as a form of venture-capital.
The fact that the applicant incurs no risk, viz., is non-recourse, as a result of a settlement loan, is an important aspect of this form of funding.
The process begins when the lender and applicant strike an agreement. According to the terms of your agreement, if you lose your case, you do not have to repay the loan. Many consider this form of funding, correctly so, as a no-risk type of financial assistance to which you have access while you are awaiting settlement.
Lawsuit loans may be provided for numerous types of cases. It is often instructive to understand not only the types of cases for which settlement funding may be obtained, but also some of the quirks involved with the specific type of case.
Automobile Accident Lawsuit: This is a very common personal injury lawsuit case. They often include medical bills that are difficult to pay. It is not uncommon for these cases to drag on for several years.
Cases involving injuries to children: Pre-settlement loans are often difficult to procure in these cases. As a result of many guardians attempting to settle these claims to satisfy their own interests, often at the expense of the injured child, the Court will occasionally appoint an attorney ad litem. The attorney ad litem is charged with representing the child’s interests, even when those interests are out-of-synch with the guardian’s.
Cases involving slip-and-fall: This is the most common mechanism that results in personal injury. Many retailers will challenge every aspect of such claims, principally due to both their prevalence and cost. If video-surveillance is available, as is true in many instances, a copy must be procured. In these cases, it is very important to clarify how the incident occurred, such as the surface on which the slip occurred, anything that may served as an obstacle in your path and that resulted in your fall, etc. IN such cases, witness testimony can prove very useful and should be elicited if both possible and it will support your claim. One should never leave to chance details regarding the manner in which the incident occurred.
Learn more about lawsuit loans. Stop by Dr. Tom Rhudy’s site where you can find out all about settlement funding and what it can do for you.