Home > Loan Articles > Settlement Funding: Does Your Case Have What it Takes to Qualify? Part I

Settlement Funding: Does Your Case Have What it Takes to Qualify? Part I

Todays Date: December 16, 2018

As we’ve discussed in the past, the term “settlement funding” is actually a misnomer. It is actually not a loan. Rather, it is funding provided in advance of obtaining a settlement of your claim. It truly is a form of venture-capital.

The fact that the applicant incurs no risk, viz., is non-recourse, as a result of a settlement loan, is an important aspect of this form of funding.

The process begins when the lender and applicant strike an agreement. According to the terms of your agreement, if you lose your case, you do not have to repay the loan. Many consider this form of funding, correctly so, as a no-risk type of financial assistance to which you have access while you are awaiting settlement.

Settlement funding may be provided for numerous types of cases. It is often instructive to understand not only the types of cases for which settlement loans may be obtained, but also some of the quirks involved with the specific type of case.

Personal injury suits very frequently occur as a result of motor vehicle collisions: Personal injuries of many types occur as result of incidents out of which this type of claim arises. On top of damage to the vehicle you occupied, there are, on many occasions, hospital bills, ambulance bills, and other medical expenses to pay. Due to the stakes involved in such cases, they are often not settled for years.

Injuries children sustain: Obtaining a pre-settlement loan for these cases is often difficult. History teaches us that, sadly, guardians often pursue a claim to benefit them, without considering the injured child’s interests, creating the need for the Court to appoint an attorney ad litem. The child’s interests may be antithetical to that of the guardian’s, resulting in the attorney ad litem representing the child in an adversarial manner.

Slip-and-Fall: This is the most common type of case. These are cases against which many retailers are taking a very hard stance. It is often necessary to request and obtain video-surveillance of the incident. It is necessary to be very clear regarding the surface on which the slip occurred, obstacles that were present that may have produced the fall, etc. Elicit testimony from witnesses if necessary to support the claim made. Don’t leave details regarding the mechanism of injury to chance.

Learn more about settlement funding. Stop by Dr. Tom Rhudy’s site where you can find out all about the benefits of obtaining a settlement loan and what it can do for you.

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