What is an asset based loan? An asset-based business line…
Rhode Island Lawsuit Funding
Legal funding is not a loan. Instead, it is designed to be a lifeline to help individuals get the money that they need while they are going through tort litigation. It can help a person get back on their feet financially before their case settles. In most cases, if an individual does not win their court case, they do not need to repay the money that is given to them.
There are a number of circumstances where a person might take advantage of this funding. For example, if an individual was in an automobile accident and they are going through a court case, the injured plaintiff may be able to get instant cash relief before their case is settled or resolved. The same is true when an individual is suing someone for an injury that is the result of faulty conditions on a construction site, in front of property, or inside of a home or office.
This money is granted to an individual based on the quality of the case. This means that before money is given, it needs to be clear that the lawsuit they are bringing forward is valid and has a good chance of being decided in their favor.
How Legal Funding Can Help
Imagine that you were in an automobile accident. As a result of the accident, your automobile is totaled, you are injured, and for a period of time you are unable to work. As a result of your injuries, you have had to seek medical care. This has led to some medical expenses. At the same time, you are going through the process of seeking compensation from the individual who is responsible for your accident. This means even more money out of your pocket.
In a normal situation, this scenario is perfect for insurance companies. They that know the financial strain you are under because of needing to repay medical bills, needing to cover legal fees, not being able to work, and needing to take care of your everyday activities means that you might be willing to settle your case for a lot less than it is actually worth. In fact, they count on you being under stress to give them the advantage.
Legal funding gives you the cash that you need now to take care of your financial needs. This way, you can focus on getting better physically and emotionally after your accident. At the same time, you have leverage with the insurance company, which allows you to negotiate from a position of power, or at least from a position of stability as opposed to being behind financially.
In essence, legal funding could be seen as a way to balance the scales of justice. It allows you to seek the compensation you deserve without being focused solely on financial resources. It gives you the tools that you need to hold insurance companies accountable for your accident. And, best of all, this is a risk free situation for you. If for some reason you do not settle your case or you do not win your case, you do not need to pay anything back.
If This Is Not a Loan, What Is It?
Some people may refer to legal funding as a loan because it is the easiest way to understand the arrangement. What actually happens is that a legal funding company will purchase part of your future settlement. When they purchase your settlement, they give you cash up front that allows you to cover your immediate expenses. Once the case is settled, you will get the portion of the settlement that is allotted to you and the legal funding company will get the portion of your settlement that they purchased from you.
The amount of legal funding you will receive will vary depending on how much your case is estimated to be worth. In most cases, a person should expect to receive up to 15 percent of the value of their accident claim. The value of your claim is usually determined by looking at the medical costs for the treatment of your injuries and then multiplying that by a factor of two or a factor of three. Every single case is different, so the particulars of each case will need to be determined on a case-by-case basis.