Lawsuit Funding Companies Walking Where Banks Fear to Tread!
Imagine this hypothetical situation; your aging uncle’s health in a nursing home is deteriorating. After a family consultation, you decide to investigate, and what you find shocks you. Your avuncular relative has been undergoing negligent care and his health is in fact worse than before.
The obvious action here is to get specialized treatment for your uncle which will drain you financially. But shouldn’t this nursing facility pay for their negligence? The law provides for it, but if you have no financing, paying medical bills and all other expenses is impossible. Of course you can go to your bank, but they will give a sympathetic ear before sending you away.
Lawsuit Funding as a Knight in Armor
Well, your family shouldn’t give up because with lawsuit funding, you can cater for your beloved uncle’s escalating medical bills in a better facility and still lodge a negligence case against the former nursing facility. There are many companies offering legal financing as you wait for the settlement case to close.
In 2014 alone, 12 states addressed lawsuit financing and some even passed legislation. This is now a regulated field with Oklahoma and Tennessee as the vanguard. As such, you will not be getting funding from unscrupulous financial institutions which can later cause misery.
The Funding Process in Detail
The entire process is professionally guided by experts. While it may vary from one firm to the other, the general steps include:
Application process: You will fill an online form or upload a financial app to provide details of your case and type of funding you need. Some firms also have accessible offices where you can collect such a form. An agent calls you on receipt of this application to get more background of the case.
Evaluating your case: Before approval of the funding request, the firm has to be sure that your claims are valid. This involves sending a request for documentation from your lawyer. This is what solidifies the evaluation process to ascertain that indeed your damage claims will end in settlement. This process also involves risk taking to ensure you are eligible.
Approval: This is mostly done within 24 or 48 hours. You will be given a contract to sign which details every aspect of this agreement. It is critical to involve your attorney in order to ensure everything is in order before signing. Once both parties are in agreement, you will get funding to cater for your living expenses.
Factors to Consider
It is important to understand the payment structure to be used by the legal funding company. In most cases, a no-recovery, no-repayment structure is agreed upon where the company advancing the money will not expect anything if you lose this case.
Other crucial aspects to lookout for include fees that you will pay in the process. The best companies charge no monthly interests and they will clearly explain this fact. Every detail including cost of underwriting this cash advance has to be stated.
You also need to do a background check on the reputation of the firm, experience in this field, registration and licensing and of course features of their funding that make them better than others.
Sarah Jung has worked both in the U.S and internationally as a legal correspondent. She is now a legal consultant and specializes in trends touching on this area of which lawsuit funding companies are currently topical.