Were often asked how lawsuit funding and settlement funding works. Let’s explain the process.
First, there is a distinction between lawsuit funding and settlement funding. Lawsuit funding is available during the course of a lawsuit up until the time a judgment or settlement is reached. Settlement funding, on the other hand, happens after a settlement is reached but that payment has not yet been received. There may be lags of 3 to 12 months between the time of the settlement and the actual disbursement of cash. Furthermore, if the defendant filed bankruptcy after the settlement, you may wait months, years or never receive your money at all. Settlement funding gets you paid now against a settlement payment to be received in the future.
Where traditional loans are given against your existing assets and your personal credit, lawsuit funding only recovers against successful settlements or collected judgments. If you lose the case, there is no recourse against you. In other words, if you lose the case you do not have to repay the money. The repayment is tied to the success of the case. For that reason, funding companies choose to work with cases that look as if they have a high chance of success. A weak case with minimal damages will generally receive no funding. However, a good case with real damages may receive significant funding.
Before you can receive funding, your case must be reviewed. The review process looks at your claim, your injuries, the jurisdiction, the court you are in and other factors. This is done in an effort to evaluate the likelihood that your case can succeed as well as a range of verdicts or settlements that you would be expected to receive. If you have a strong case, you can typically receive funding against a portion of the amount of recovery you are seeking. With a weak case, funding will not generally be available.
You also must authorize your attorney to share certain information with the funding company. They will review that information and determine what levels of funding may be available. Once approved, paperwork would be sent to your attorney. Certain papers must be signed and returned before you may receive payment. This ensures that the funding company is protected with an interest in the case, and that you receive your funding as quickly as possible.
To find out whether you qualify for funding submit the short online form on this page. One of our funding experts will get in touch with you about next steps to review and assess your case and whether you may qualify for funding.
Fill out this short inquiry and one of our experts will contact you. Learn how much funding you may receive, risk-free.