legal funding companyGetting a pre settlement funding to use while injured due to an accident caused by an errant driver, will help alleviate worries over payment of hospital bills and other expenses.
Although sometimes called a lawsuit loan, the legal funding company that granted the pre-settlement funding will get paid only if there is already a judicial ruling on who is at fault or an extrajudicial (out-of-court) settlement regarding the accident.
Yet in the event the court decided the supposedly errant driver is not at fault, the complainant who received the pre settlement funding or lawsuit loan is not required to pay the legal funding company. The granting of the pre settlement funding was a risk taken by the financier, which makes evaluating the potential merits of the lawsuit an important aspect of the lending business.
On the other hand, when the victim or the plaintiff of a lawsuit is contemplating on taking out a lawsuit loan, he or she must work closely with the financing company providing the pre settlement funding.
Since the element of risk could impact the financial position of the financier, the latter will impose terms and interest rates that will allow the company to profit from the business of lending money without guarantee of future payment.
Pre settlement funding is a financial tool offered to individuals who, as a result of an accident or professional neglect, lose their ability to work and earn money they will use to pay for hospitalization bills and other expenses such as rent, groceries, utilities and the like.
Kinds of Legal Causes Considered as Eligible by Providers of Pre Settlement Funding
The granting of pre settlement funding depends on the cause of the legal complaint filed by an individual against another person or entity as a way to seek payment for an injury or damage caused by an accident, neglect or malpractice.
While it takes time for a court to decide on a lawsuit, the complainant or plaintiff who has been incapacitated or disabled by the accident needs money to pay for groceries, bills and medications. However, not all lawsuits seeking compensation can avail of a pre settlement funding while awaiting the court’s decision.
The following are examples of such lawsuits:
1. Car accidents, especially if the driver of the vehicle is DUI;
2. Slip and fall accidents leading to loss of wages, pain, suffering as well as incurrence of medical expenses;
3. Nursing home neglect and abuse that caused pain and suffering to the person who was entrusted to the nursing home.
4. Medical malpractice claims are lawsuits filed against a healthcare provider such as a doctor or nurse who gave substandard or inappropriate care and treatment that caused harm, injury or death to a person under his or her professional care.
5. Pedestrian accidents refer to the physical injuries or loss of life caused by a motor vehicle after hitting a pedestrian or person not riding a motor vehicle.
6. Bicycle accidents