Mike was seriously injured in an auto accident and unable to return to work. He filed a lawsuit against the negligent driver, but while the case was strong and winnable in court, the defense were denying, defending, and delaying the claim. Until the auto accident, Mike had excellent credit so he was able to apply and receive a traditional bank loan to help pay the medical bills and monthly household expenses. Unfortunately, Mike’s case did not settle as soon as expected and he defaulted on the loan. His car was repossessed and his credit was ruined.
Carol was seriously injured in an auto accident and unable to return to work. She filed a lawsuit, but her case was also being delayed by the defendant. Instead of a traditional bank loan, Carol opted for litigation funding from a legal finance company. This non-recourse cash advance covered her bills for three months, but when her case was delayed she needed to request additional funding. Her case settled three months later; Carol stayed financially afloat and maintained her credit standing.
After repaying the lawsuit cash advance, Carol’s proceeds from the settlement were less than Mike’s, but she was able to keep all bills current and maintain good credit.
While litigation funding is not right for every plaintiff, it can be the answer if the only option is to settle too soon, for too little. Unlike a traditional bank loan, there are no monthly payments, no credit checks, or employment verification. If you fail to make monthly payments, you default on the loan. Once you default, you are at risk of losing whatever collateral you pledged as security for the loan, usually your home. Additionally, you are still obligated to repay the loan. On the other hand, litigation funding is based solely on the merits of the case, plaintiffs who may not qualify for a bank loan or line of credit, may qualify for a lawsuit cash advance. Litigation funding is risk-free; repayment is only made if, and when, the plaintiff successfully settles, whereas a bank loan must always be repaid. Additionally, a lawsuit cash advance never shows up on a credit report.
When you need fast cash and everyone else is saying “No”, contact Litigation Funding Corp. After completing a one-page application, we will request documentation from your attorney to determine if the case has merit. If approved, funding can be available in less than 48 hours. With litigation funding, you have nothing to lose, but much to gain – financial peace of mind and credit intact.