Legal funding for personal injury cases is a financial arrangement in which plaintiffs receive a cash advance to cover living expenses, medical bills, and other costs while waiting for their case to settle or go to trial. This funding is non-recourse, meaning the plaintiff only repays the advance if they win or settle the case.
Let’s take a closer look at how the process actually works.
Consultation & Application
Plaintiff applies for legal funding. After filing a personal injury lawsuit (e.g., a car accident, medical malpractice, or slip and fall case), the plaintiff can apply for legal funding. The process is usually simple and starts with filling out an online or phone application.
Information required. The plaintiff provides basic case details, including the type of injury, the severity of the damages, expected medical expenses, and any ongoing treatments. The legal funding company may also request documentation from the plaintiff’s attorney.
Case Evaluation
Attorney collaboration. The funding company typically contacts the plaintiff’s attorney to gather more detailed information about the case, such as the strength of the claim, potential settlement amount, and timeline for resolution. The attorney may provide medical records, police reports, or other evidence.
Risk assessment. The funding company assesses the likelihood of a favorable outcome for the plaintiff, including how much they could potentially recover in a settlement or judgment. They are particularly interested in the merits of the case and whether the defendant is likely to be found liable.
Approval & Offer
Funding approval. Based on the evaluation, if the funding company believes the plaintiff has a strong case and is likely to win or settle, they will approve the plaintiff for legal funding.
Offer extended. The company makes a funding offer, which typically represents a percentage of the anticipated settlement or judgment. The amount offered may vary depending on the severity of the injury and the expected value of the case.
Agreement & Terms
Non-recourse agreement. The plaintiff and the funding company enter into a non-recourse agreement, which means the plaintiff only repays the funding if they win or settle the case. If they lose, they owe nothing to the funding company.
Interest and fees. The agreement outlines the interest rate and any fees associated with the funding. These costs accumulate over time, meaning the longer the case takes to settle, the more the plaintiff will owe. It’s important for plaintiffs to carefully review and understand the terms before accepting the offer.
Receiving Funds
Cash advance. Once the plaintiff agrees to the terms, they receive the legal funding as a cash advance, typically within a few days. These funds can be used to cover various expenses, such as:
- Medical bills
- Rent or mortgage payments
- Utilities
- Daily living expenses
- Legal fees or case-related costs (although these are often handled by the attorney on a contingency basis)
Ongoing Process
No interference with the case. Legal funding companies do not interfere with how the attorney handles the personal injury case. The attorney continues to represent the plaintiff and pursue the case as planned.
Time flexibility. With the financial support from legal funding, plaintiffs are less pressured to accept a low settlement offer from the defense. This allows their attorney more time to negotiate or prepare for trial.
Repayment
Settlement or verdict. Once the case is resolved through settlement or a court judgment, the plaintiff’s attorney will receive the settlement funds.
Repayment. Out of the settlement, the attorney first deducts their contingency fee and legal expenses. Then, the funding company is repaid the agreed-upon amount, which includes the original advance plus accumulated interest and fees.
Plaintiff receives the remaining settlement. After all repayments are made, the plaintiff receives the remainder of the settlement or judgment.
Legal Funding From Cash Now Funding Group
Are you or a family member in need of financial assistance due to a lengthy legal battle? Are you preparing for a long-term legal battle to get the compensation you deserve? Cash Now Funding Group can be the financial lifeline you need while your case settles. Applying is free and confidential & no credit check is required.
