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Settlement Funding

Settlement funding can help plaintiffs avoid settling cases early. With settlement funding personal injury victims can get help paying their regular living expenses while involved at trial.

 

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Many settlement funding firms provide "non-recourse interim funding" that is not a loan and does not have to be paid back if there is no recovery at trial. What settlement funding is, is a way that the plaintiff can stay the course of a trial and benefit from the full amount of the claim.

Many defendant companies will try to extend court proceedings in order to drain the financial resources of the plaintiff, forcing them to settle for far less than what is being asked for in the claim. This financial drain is the number one reason that people settle for far less than what is owed them. Many plaintiffs are out of work for a time after a personal injury accident and have very little financial cushion to fall back on.

Attorneys are often asked for a cash advance by clients who wish to stay the course of their trials. This request puts the attorney in an ethical dilemma. In giving a client a cash advance the attorney could be disciplined or disbarred. When a client receives an advance from a third-party settlement funding firm instead of the attorney, the pressure to settle quickly and cheaply is removed and the ethical dilemma resolved.

Personal injury lawyers take on a big risk when they take an injury case. Hours of time, money and resources are poured into the case in hopes of a payoff at the end. When a client receives a settlement funding cash advance (also known as pre-settlement funding), then this takes a huge burden off both the client and the attorney. The attorney is secure in knowing that the client has the financial means to go the distance in the trial.

Sometimes, attorneys who are overly-cautious and unsure about the implications of settlement funding will not point their clients to this type of resource. Because of this, many clients are not aware of the availability of this resource and may just happen to stumble upon this information on their own by mistake. The reality is, though, that this is just the type of resource that many clients need to be pointed to in order to secure a fully-litigated trial. With settlement funding in the client's pocket, there is no need to settle for less at trial.

 

 

 

 

 

 

 


 

 


 

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