Settlement Funding - How Much Does it Cost?

Although customarily not the first question asked, it is a question on most, if not all, applicants' minds. Much to the applicant's consternation, there is no single answer to this question!

Costs incurred with settlement funding vary with the amount funded, complexity of the case, where the case is in the litigation process, the risks involved with the likelihood of a plaintiff's verdict, and length of each case. Once your application is submitted, you and your attorney will be contacted to discuss your case in an effort to ascertain the foregoing.

As with any situation in monies are advanced, efforts will be expended to minimize risks involved prior to funding your case. Many applicants fail to disclose previous funding obtained. Previous funding in a specific case is another factor taken under consideration to assess the cost inherent in providing settlement funding.

It is not infrequent that both applicants and attorneys are curious to know in what manner settlement funding will affect an recovery realized. Once again, there is no single answer, and many possibilities come to mind, a few of which we will discuss here.

It is possible that your case will settle for more than anticipated once the settlement funding is provided. The plaintiff, in this scenario, obtains a greater judgment and the attorney, in most cases, receives a higher fee.

In cases in which settlement funding is provided and the case settles for what you expected, the award is not affected and the attorney's fee remains unchanged. The advantage of obtaining settlement loans is that they allow you to pursue a larger settlement than may have otherwise been obtained if limited finances force you to settle prematurely.

If you have obtained a lawsuit loan and you recover less than anticipated, you, as well as all involved parties, will likely receive less than you may have otherwise. It is important to realize, however, that it is unlikely that the defendant would have offered as much as you ultimately recovered.

In the scenario in which you lose the case and there is no recovery, if you've obtained a lawsuit loan, you win! As a non-recourse instrument, settlement funding is only repaid if you obtain a recovery.

Learn more about settlement funding. Stop by our site where you can find out all about lawsuit loans and what they can do for you.