Settlement Funding: Does Your Case Have What it Takes to Qualify? Part I

Why do we even refer to it as a lawsuit loan? It is clearly not a loan in any sense of the word! To be precise, we should refer to it as settlement funding, a form of funding provided in advance of settling your claim. One may even go so far as to refer to it as venture-capital.

An important aspect of this form of funding is the fact that the applicant bears no risk in this transaction, a benefit of having a non-recourse loan.

The process begins when the lender and applicant strike an agreement. According to the terms of your agreement, if you lose your case, you do not have to repay the loan. Many consider this form of funding, correctly so, as a no-risk type of financial assistance to which you have access while you are awaiting settlement.

Settlement funding may be provided for numerous types of cases. It is often instructive to understand not only the types of cases for which settlement loans may be obtained, but also some of the quirks involved with the specific type of case.

Personal injury suits very frequently occur as a result of motor vehicle collisions: Personal injuries of many types occur as result of incidents out of which this type of claim arises. On top of damage to the vehicle you occupied, there are, on many occasions, hospital bills, ambulance bills, and other medical expenses to pay. Due to the stakes involved in such cases, they are often not settled for years.


Cases involving injuries to children: Pre-settlement loans are often difficult to procure in these cases. As a result of many guardians attempting to settle these claims to satisfy their own interests, often at the expense of the injured child, the Court will occasionally appoint an attorney ad litem. The attorney ad litem is charged with representing the child’s interests, even when those interests are out-of-synch with the guardian’s.

Cases involving slip-and-fall: This is the most common mechanism that results in personal injury, many times requiring settlement funding. Many retailers will challenge every aspect of such claims, principally due to both their prevalence and cost.

If video-surveillance is available, as is true in many instances, a copy must be procured. In these cases, it is very important to clarify how the incident occurred, such as the surface on which the slip occurred, anything that may serve as an obstacle in your path and that resulted in your fall, etc.

In such cases, witness testimony can prove very useful and should be elicited if both possible and it will support your claim. One should never leave to chance details regarding the manner in which the incident occurred. Your chances of obtaining settlement funding are increased when you provide a complete description of the incident.

Want to find out more about settlement funding, then visit Dr. Tom Rhudy's site to find out if you qualify for asettlement funding for your needs.