How Pre-Settlement Funding Empowers Plaintiffs In Legal Battles
December 27, 2023
Plaintiffs often face many financial challenges during the legal process, which can be lengthy. Because of this reason, many plaintiffs consider pre-settlement funding as an option that can help them face any legal battle with some more stability.
In this article, you can find various reasons that back up this argument, which can help you decide whether or not going for pre-settlement funding can be a great option to consider whenever needed.
Financial Stability And Repayment
Let’s begin with the matter of financial stability as many lawsuits can take a long time to resolve, sometimes even months or years, and during this amount of time, many plaintiffs can struggle to cover several expenses, including living and medical bills and even other financial obligations that might occur. The option of pre-settlement funding can help them cover those expenses and provide plaintiffs with some more financial stability for them to be able to maintain their normal quality of life while waiting for a fair settlement.
Another reason why many plaintiffs look at this as an option is the matter of the repayment, which is one of the most interesting advantages of this format, as pre-settlement funding is what is called “non-recourse.” This means that if you lose your case, you won’t be obliged to repay the financing. This gives plaintiffs a great deal of peace of mind, as they can get the certainty that they won’t be burdened with additional debt in the worst cases.
Balance And Proactivity
It is not a secret that insurance companies and defendants often have more means than the plaintiffs and can, therefore, afford to prolong the legal pressure. This often pressures plaintiffs to settle for a less favorable deal only because of monetary matters. With pre-settlement funding options, plaintiffs can stand their ground with a more balanced financial situation and give them the resources to continue pursuing their case and negotiate for a fair settlement that won’t leave them unsatisfied.
Many people think that the funding application is burdensome and lengthy for a pre-settlement, but that is simply not true. Applying for this type of funding is pretty simple and manageable. Many companies even have a dedicated team to help plaintiffs navigate this process, and the budget is often received within a few days. Companies tend to understand the urgency of the situation, and because of this, they do their best to speed up this process and give you the funding you need.
Lack Of Needless Verifications And Attorney-Client Relationship
Traditional loans often need to perform long and needless verifications of the person who is applying for funding. Instead, your eligibility for pre-settlement funding is based on your case strength rather than your financial history. This makes this type of funding rather accessible to a wide range of plaintiffs from different economic backgrounds.
Finally, another benefit to consider would be the attorney-client relationship. Getting this type of funding often means alleviating the financial pressure to avoid potential conflicts with your attorney or even some unpaid bills. Assuring adequate compensation for the people who are helping you win your case is a great way to pay back and show your gratitude towards them. This can also be helpful in the long run, as this type of attitude strengthens the relationship with a given attorney, which can always be beneficial in the future. These were some of the most significant benefits that you could get from going for pre-settlement funding.
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