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North Carolina Lawsuit Funding
When you are in the middle of an injury claim, things can start to feel overwhelming fast. In addition to all of the time and energy you need to dedicate to your claim, you have to manage your everyday activities. If you are injured to the point that you are not able to work, you have your financial expenses to worry about in addition to everything else.
Lawsuit funding may be the tool that you need to keep your head above water. Before taking advantage of this tool, it is good to have a basic understanding of how lawsuit funding works, how it compares to a traditional loan, and the benefits that it provides.
What Is a Lawsuit Funding?
When you are injured in an automobile accident, a slip and fall accident, or some other accident caused by a person’s negligence, your life changes. You may find yourself in a hospital bed recovering for days or weeks from your injuries. During your recovery, you may not be able to work. Just because you are injured, this does not mean that your rent payment, your mortgage, your car payment, or your grocery bills disappear. In fact, if anything, you now have the added worry of covering your medical expenses.
Lawsuit funding is a specialized type of financing designed to remove some of the stress as you are dealing with your personal injury. With lawsuit funding, a financial institution that is familiar with civil litigation will purchase a portion of your future settlement. They will pay you for that future portion of your settlement up front. You can then use that money to cover any of the daily expenses that you have.
Lawsuit funding is not a loan. With a loan, you borrow a set amount of money from a lending institution. Now, you are in debt to that lending institution. They require you to repay the loan regardless of the circumstances that you face in the future.
With lawsuit funding, you are not accruing debt. Instead, you are being paid in advance for something that will be provided after your case is settled. With most lawsuit funding institutions, if you do not win your case or if you do not settle your case, you have nothing to repay. This is very different from simply getting a loan.
Lawsuit funding is based, not on your credit history or not on the job you currently have, but on the validity of your lawsuit. After the initial application process, the funding institution will talk to your lawyer and examine the particulars of your case. Based on the information they gather, they will decide whether or not to approve the funding and how much funding they will extend. In most cases, you should expect to receive between 10 and 15 percent of the expected settlement of your case.
The Benefits of Lawsuit Funding
Even if you have a very strong case and even if you are working with the best lawyer in the country, your lawsuit can take time. With personal injury cases, a plaintiff may need to wait months or years before they see any money. During that time, your bills are going to keep piling up. During that time, you will still need to care for your family. During that time, your medical expenses will increase and your lost wages will take a toll on your financial situation.
Lawsuit funding allows you to access the funds that will potentially be yours at the end of a lawsuit before a lawsuit has finished. Having access to these funds will make it easier for you when negotiating with insurance companies. You will be able to negotiate from a position of security and will not feel like you have to take any offer the insurance company gives you because you are under the gun.
No two personal injury cases are exactly the same. So the way that two different cases will handled by a lawsuit funding company may vary. While it may feel daunting to think about parting with a fraction of your settlement, it is often a better option than not being able to pay mortgage payments, not being able to provide food for your family, and not being able to care for yourself.
For many people, lawsuit funding has been a lifeline that has allowed them to have the peace of mind needed to recover from their injuries as they are going through the lawsuit process.