It is not unusual for personal injury plaintiffs to face a financial
crunch. As conventional loans become hard to get, one option is to get a
non-recourse settlement loan. Such a loan is provided based only on the
merits of the case.
Anyone who suffers an injury because of the negligence of others may
be entitled to file a personal injury lawsuit for damages. However, as
experts will suggest, litigation takes time, and, if you have lost your
source of income, you may face a financial crunch. Particularly, if you
do not have an emergency fund, the situation may be grave.
Expenses won’t wait for you to work again. Expenses often include
rent, tuition, groceries, medical costs, etc. Moreover, there is also
the cost of litigation to bear.
Often, defendants try to take advantage of the situation and force an
early settlement on litigants. The settlement they offer is not usually
financially favorable. Yet, the litigant may feel forced to accept the
settlement, thanks to the financial crunch. The settlement may be only a
fraction of the amount one may receive if it is determined by a court.
One may try to get financial support from banks or friends. However,
banks won’t usually give loans to people who do not have a source of
income. The money one gets from a friend may not be enough to survive
for long.
One option left for litigants to help with day to day expenses is a
non-recourse pre-settlement loan. This sort of funding does not require
any proof of income as the companies provide a loan solely on the merits
of the case. If they conclude that a case has substantial chances of
getting a favorable ruling in a court of law, they may fund the
litigant. Their experts will talk to the client and their lawyer to
determine the merits of the case before making a decision.
One is not liable to pay back the advance in case the lawsuit is
unsuccessful. Moreover, the financing company is paid back only when the
settlement is released. It is the lawyer’s obligation to provide the
financial company with their share before forwarding the payment to the
client, so the client doesn’t have to worry about that payment.. Many
lawyers will also work on a contingency fee basis, where they deduct
their fee from the settlement. This can bring more financial relief to
the client.
Lawyers are prohibited from giving cash advances to their clients due
to the potential for conflicts of interest. However, there is no such
restriction on lawsuit funding.
There are many plaintiffs who were able to sustain themselves until a
settlement was reached, due to settlement funding. They were able to
withstand pressure from the defendants to accept a quick settlement.
Non-recourse funding may be very helpful for plaintiffs as there is no
financial pressure to make immediate payments. They can ask for the
amounts they need to meet their day to day expenses when they apply for a
loan. Click here to learn more about personal injury settlement financing plans.
Easy Legal Finance Inc. is a company that offers easy loans to personal injury litigants. You can visit www.easylegal.ca for more information.
About the Author
The author of this article is associated with Easy Legal
Finance Inc. that provides settlement loans. They enable plaintiffs to
meet their immediate financial needs and thus help increase their
chances of a successful settlement.
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