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Lawsuit funding usually comes in the form of non-recourse cash advances, provided to the injured person in return for a promise to repay the advance after the lawsuit settles or there is a victory in court. As this is “non-recourse” funding, an injured person does not have to repay the advance if they are unsuccessful in the lawsuit, and only has to repay up to the amount of their share of the settlement in the event that the settlement is smaller than anticipated. An injured person contacts a company that offers pre-settlement lawsuit funding, sometimes at the suggestion of an attorney. The finance company contacts the lawyer who is handling the case and obtains information about the case. Based upon that information provided, the loan company estimates the value of the likely eventual settlement or verdict and offers a cash advance to the injured person based upon that estimate.
Sometimes an attorney wont sign any contract with a settlement financing company, and some states prohibit lawyers from signing onto liens to secure this type of funding. As a result, companies require that the injured person sign the contract, and t the attorney sign an acknowledgement of the clients instruction that the loan and associated fees be repaid from any eventual verdict or settlement.
At least one state (Florida) prohibits lawyers from participating in the settlement funding companys evaluation process. Absent lawyer involvement, it is unlikely that a finance company would be able to obtain enough information about a case to risk issuing non-recourse funding.
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Florida Personal Injury Lawyers provides detailed information about florida personal injury lawyers, florida personal injury lawsuit funding, florida personal injury law firms, florida personal injury laws and more. Florida Personal Injury Lawyers is the sister site of Michigan Personal Injury Lawyers Info. Article Source: |
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