Lawsuit Funding Law Practice Support Services for Financial Litigation Pending Medical Malpractice and Personal Injury Law Suits
Lawsuit financing is an option for people who are involved in litigation and in need of cash. The potential settlement of the pending lawsuit is used as collateral to obtain a cash advance. The amount of the cash advance depends upon the nature of the law suit and who is involved.
Lawsuit financing is typically funded as "non-recourse" cash advances. This means if a person obtains a pre-settlement cash advance and is unsuccessful in winning the lawsuit, they do not have to repay the advance. In the event the settlement is less than expected, repayment amounts cannot exceed the amount of settlement received.
Pre-settlement lawsuit funding is available for a variety of legal cases including personal injury, medical malpractice, automobile or motorcycle accidents, worker's compensation, wrongful death, product liability, nursing home negligence, legal malpractice, pharmaceutical litigation and more.
Law firms are not allowed to offer lawsuit financing to their clients due to potential conflict of interest. However, attorney's will oftentimes refer their clients to a funding company who specializes in pre-settlement advances such as Simon Volkov.
The law suit plaintiff provides information about their case to the funding company, who in turns contacts the plaintiff's attorney. Upon obtaining information about the case from the attorney, the funding company will be able to evaluate the potential settlement. If the plaintiff appears to have a solid case and strong potential for winning a settlement, the funding company will make a cash advance offer.
When the plaintiff accepts the offer, they agree to repay the advance and a financing fee. Typically, there are two types of fees, flat and recurring. A flat fee means the funding company will charge you a set amount to be repaid when the case is settled. A recurring fee is generally charged on a monthly basis and based on the amount of funds advanced. Upon settlement, the full amount of the advance and associated fees are paid to the funding company.
Litigation can take a very long time, sometimes dragging on for years. Most people are not in a financial position to maintain their standard of living if they are unable to work. Oftentimes, people who opt for lawsuit financing have little to no income because of their injuries. Typically, they have mounting medical or legal expenses which make it difficult to make ends meet. Pre-settlement funding allows them to obtain money for food, shelter, medical and legal expenses.
While many lawyers will recommend litigation financing, some refuse to sign any contract with a settlement financing company. Some states prohibit lawyers from signing the type of lien necessary to secure pre-settlement funding. Florida prohibits lawyers from providing information to lawsuit financing companies altogether.
If you are currently involved in litigation and are considering pre-settlement funding, it's best to consult with your attorney prior to contacting potential lenders. If your attorney is unable or unwilling to work with a lawsuit funding company, there is a high probability the company will not be able to provide you with lawsuit financing. This is because the lending company will not be able to obtain appropriate information about your case to determine your chances of winning a settlement.
The funds you receive from a law suit financing company will not be described as a "loan". Instead, you will receive a cash advance, along with a promise to repay the advance and associated fees once a settlement occurs. Regardless of the verdict, a person who receives a pre-settlement advance retains the full amount.
Companies who offers lawsuit financing, such as Simon Volkow, offer pre-settlement funding amounts between $500 and $25,000 or more. Oftentimes, more than one funding option is available, so it's important to discuss your financial needs with your lawyer and the funding company.
At Simon Volkov, we strive to provide you with the best funding package at a rate you can afford. We understand you are under a great deal of stress and it is our goal to help you sort through the confusion so you can make a well-informed decision.
To begin the process, fill out the secure Lawsuit Financing form. Your information is held in the strictest confidence and there is no obligation to speak with us. Upon receipt of your information one of our consultants will contact you to discuss your needs. We look forward to working with you and assisting you through the process.