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New York Lawsuit Funding
Accidents happen when you least expect it. Depending on the severity of your accident, you may find yourself recovering for days, months, or even years. During the recovery process, your bills do not stop. If anything, medical bills add to your expenses. It can feel like you are drowning in bills while you wait for a settlement from your personal injury case. Lawsuit funding may be the tool that you need to help you keep your head above water as you try to deal with the aftermath of a personal injury.
What Types of Personal Injury Lawsuits Can Be Funded?
In most cases, personal injury claims include:
· Automobile accidents
· Premise liability
· Slip and fall lawsuits
· Construction accident lawsuits
· Police brutality lawsuits
· Medical malpractice claims
· Assault and battery claims
Every personal injury case is different. Not all personal injury cases will meet the qualifications for funding. By covering a variety of personal injury claims, lawsuit funding makes it possible for people to get an advance on their settlement. This balances out some of the inequities that are seen in the justice system.
When a person sustains a personal injury and they do not have the financial resources to cover their medical bills, pay their mortgage, or pay their every day expenses, they find themselves at the mercy of insurance companies. Insurance companies take advantage of the fact that the injured individual cannot work. They realize that the injured individual is struggling to make ends meet. So they will do what they can to drag out the litigation process. They feel that if they can drag things out long enough, the plaintiff will get to the point where their expenses are so great that they will accept any settlement, even if it is less than what the case is worth just to keep themselves above water.
Lawsuit funding can save the day in these instances. By allowing you to get an advance on your settlement, you are able to provide your family with the financial security that is needed as you go through the litigation process. You will be able to see things to the end without being worried. This could mean a higher payout for you once the case settles. In the interim, you will be able to continue to pay your mortgage, your medical bills, and your car payments.
Is Lawsuit Funding a Loan?
You may hear lawsuit funding referred to as a personal injury loan. However, this term is not accurate. When you take out a loan, you are putting yourself in debt to the individual who is borrowing you the money. You will need to repay the loan over a set period of time plus any interest that has accrued. If you are unable to pay the loan, your financial situation gets worse.
With lawsuit funding, the story is quite different. You are selling a percentage of your future settlement to the institution that is providing the funding. When your case settles, you will be able to keep your settlement, minus the portion that the lawsuit funding company bought from you in advance. There is no debt on your part. If for some reason your case does not settle or if you lose the case, you owe nothing.
Since your funding is based on a portion of your future settlement, your application will be approved or denied based on the validity of your lawsuit. After you fill out an application, your lawyer will be contacted. Case managers will work with your lawyer in understanding the ins and outs of your case. Once a full picture of your case has been created, the lawsuit funding institution will determine if your case has a high percentage chance of being successful in court. Then they will attempt to determine the amount of money you should win in your case. Based on that, they will purchase a percentage of your future settlement and pay you for that upfront.
You can use this money to pay your rent, pay your mortgage, buy groceries for your children, keep gas in your car, etc. as you go through the litigation process. Lawsuit funding can give you peace of mind as you are going through a challenging situation. It can help you to focus on the important things, like getting better.