“The personal injury lawsuit I filed is now being heard in court but if I can’t work at the moment, can I getmy settlement check early so that my finances won’t get ruined?” This is the usual sentiment of people who have become unwilling victims of irresponsible and careless actions or neglect.
Personal injury victims are anxious about the availability of funds while still in the recovery stage. After all, accidents can affect not only the victim but also the entire family relying on him for subsistence. A cash settlement is imminent but the question of how soon it will become available is a critical matter.
The truth of the matter is that even if a settlement amount has been decided by the court, collecting the proceeds can still take time. This is especially true if the defendant or offender also relies on the insurance company that will provide him with funds to pay for compensatory damages.
What is a Lawsuit Lending Company
It’s a good thing there are companies that made it their business to provide legal funding to financially distressed plaintiffs. Providing personal injury victims with a lawsuit loan that gives them immediate means to pay for financial needs and obligations, can motivate them to recover and recuperate as quickly as possible.
The lawsuit lending industry however is not regulated by a specific government agency. Since there is great risks involved in advancing settlement fundings, the lending program imposes interest charges on the principal amount granted as a lawsuit loan. However, since the industry is not regulated, it would be best to choose a reputable lawsuit company based on real consumer recommendations and reviews.
What Exactly are Lawsuit Loans?
Lawsuit loans aren’t actually loans because the company will have to collect payment from the proceeds of the lawsuit once all the legal processing and documentations have been completed. Accepting pre settlement funding is one way that a personal injury victim can have early access to the settlement money.
However, collecting a reimbursement of a pre settlement funding on the part of the lawsuit company is possible only if the court decides in favor of the victim. Otherwise, the lawsuit funding company cannot go after the victim who received the pre settlement funding,
Early Access to Settlement Money by Way of Extra-Judicial Proceedings
Another way that a victim can have early access to a settlement is when the offending party wants to cut short the legal proceedings by offering an out-of-court settlement to the victim. The purpose of which is to immediately put an end to the court case to avoid greater legal costs and in some cases,cause damage to the reputation of the erring party.
In such cases, the victim, who is the plaintiff in a legal proceeding, will have to sign a release form upon accepting the extra judicial settlement.
Doing so signifies that the funding received is final and that he will no longer pursue further legal actions related to the personal injury case.