If you’re involved in a lawsuit and are finding it challenging to make ends meet while waiting for your case to settle, you may be considering plaintiff funding.
Plaintiff funding, also known as lawsuit funding or pre-settlement funding, is a financial solution that can help you cover your expenses while your case is ongoing.
Types of Plaintiff Funding
Plaintiff funding, also known as lawsuit loans or pre-settlement funding, is a type of financing available to individuals who are pursuing a lawsuit and need financial assistance while their case is pending.
There are several types of plaintiff funding designed to help plaintiffs cover various expenses, such as living costs, medical bills, and legal fees, until their case is resolved and they receive a settlement or judgment.
Pre-Settlement Funding
Pre-settlement funding is a type of lawsuit funding that provides plaintiffs with a cash advance before their case settles. This funding is based on the expected value of your settlement and can help you cover your living expenses, medical bills, and other costs while your case is ongoing.
The process is simple: you apply for funding, and if approved, you receive a cash advance. If your case settles successfully, you repay the advance plus fees from your settlement proceeds. If your case is unsuccessful, you owe nothing.
Here’s an example: let’s say you’re involved in a personal injury lawsuit and need money to cover your medical bills and living expenses. You apply for pre-settlement funding and are approved for a $10,000 advance. When your case settles for $100,000, you repay the $10,000 advance plus fees from your settlement, and keep the rest.
According to the U.S. Chamber of Commerce Institute for Legal Reform, third-party litigation funding (TPLF), which originated in Australia in the mid-1990s, expanded globally and reached the United States approximately ten years later. It has recently seen rapid growth, becoming a multi-billion-dollar global industry with about $13 billion in assets under management in the U.S. alone.
Post-Settlement Funding
Post-settlement funding is similar to pre-settlement funding, but it’s available after your case has been settled. This type of funding can help you if there’s a delay in receiving your settlement proceeds.
The process works the same way as pre-settlement funding: you apply for funding, and if approved, you receive a cash advance. You repay the advance plus fees when you receive your settlement proceeds.
For example, let’s say your case has settled for $50,000, but there’s a delay in receiving your settlement check. You apply for post-settlement funding and are approved for a $5,000 advance. When you receive your settlement check, you repay the $5,000 advance plus fees, and keep the rest.
How Plaintiff Funding Can Help
There are several ways in which plaintiff funding can help:
Covering Living Expenses
One of the primary benefits of plaintiff funding is that it can help you cover your living expenses while your case is ongoing. This can include things like:
- Rent or mortgage payments
- Utility bills
- Groceries and basic necessities
In our experience, many plaintiffs struggle to make ends meet while waiting for their case to settle. Plaintiff funding can provide a much-needed financial lifeline during this time.
Paying Medical Bills
If you’ve been injured due to someone else’s negligence, you may be facing significant medical bills. Plaintiff funding can help you pay for:
- Doctor’s visits
- Hospital stays
- Physical therapy
- Prescription medications
By using plaintiff funding to cover your medical expenses, you can focus on your recovery without worrying about how you’ll pay your bills.
Leveling the Playing Field
Another benefit of plaintiff funding is that it can level the playing field between you and the defendant. Insurance companies and large corporations often have deep pockets and can afford to drag out a case for years. By contrast, you may be feeling pressure to settle quickly for less than your case is worth.
With plaintiff funding, you have the financial resources to hold out for a fair settlement. You don’t have to accept a lowball offer just because you need the money.
We’ve seen firsthand how plaintiff funding can empower plaintiffs to fight for the compensation they deserve. In one case, a client was able to reject a $50,000 settlement offer and ultimately receive a $250,000 settlement thanks to the financial support provided by plaintiff funding.
The Plaintiff Funding Process
Understanding the plaintiff funding process is essential for individuals considering this financial option while pursuing a lawsuit. The process is designed to be straightforward and accessible, allowing plaintiffs to obtain the funds they need without added stress or complications.
It typically involves the following steps:
Applying for Funding
The first step in the plaintiff funding process is to apply for funding. To be eligible, you must:
- Be at least 18 years old
- Have a pending lawsuit
- Be represented by an attorney
The application process is simple and straightforward. You’ll need to provide some basic information about yourself and your case, including:
- Your name and contact information
- Your attorney’s name and contact information
- Details about your lawsuit, including the type of case and the expected settlement amount
An ideal candidate for plaintiff funding is someone who has a strong case with clear liability and significant damages. For example, a person who was seriously injured in a car accident caused by a drunk driver would be a good candidate for funding.
Underwriting and Approval
Once you’ve submitted your application, the funding company will review your case to determine whether to approve your request for funding. This process is called underwriting.
During underwriting, the funding company will consider factors such as:
- The strength of your case
- The expected settlement amount
- The length of time until your case is likely to settle
If your application is approved, you’ll receive a funding agreement that outlines the terms of your advance, including the amount of funding you’ll receive and the fees you’ll be charged.
The underwriting process typically takes just a few days. In our experience, most clients receive a decision on their application within 24-48 hours.
Receiving Funds and Repayment
If your application is approved, you’ll receive your funds quickly – often within 24 hours of signing your funding agreement. The money will be transferred directly to your bank account, and you can use it for any purpose you choose.
When your case settles, your attorney will repay the advance plus fees out of your settlement proceeds. You won’t have to worry about writing a check or making payments yourself.
It’s important to note that plaintiff funding is non-recourse. This means that if you lose your case, you won’t have to repay the advance. The funding company takes on the risk of your case not settling or settling for less than expected.
Here’s an example of how the repayment process works: let’s say you receive a $5,000 advance with fees of $1,000. When your case settles for $50,000, your attorney will repay the $5,000 advance plus the $1,000 in fees out of your settlement proceeds. You’ll receive the remaining $44,000.
Choosing a Plaintiff Funding Company
When evaluating plaintiff funding companies, consider the following factors:
Experience and Reputation
When choosing a plaintiff funding company, it’s important to work with a reputable provider with experience in the industry. Look for a company that:
- Has been in business for several years
- Has a track record of success
- Is transparent about their fees and terms
- Provides excellent customer service
Red flags to watch out for include companies that:
- Pressure you to make a decision quickly
- Charge hidden fees
- Have poor customer reviews or complaints
At Mayfair Legal Funding, we pride ourselves on being a trustworthy and experienced provider of plaintiff funding. We’ve helped countless clients get the financial support they need to fight for the compensation they deserve.
Transparency and Customer Service
Another important factor to consider when choosing a plaintiff funding company is transparency and customer service. You should work with a company that:
- Clearly explains their fees and terms
- Answers your questions promptly and thoroughly
- Provides personalized service tailored to your needs
At Mayfair Legal Funding, we believe in being fully transparent with our clients. We’ll take the time to explain our funding agreement in plain language and answer any questions you may have. And our team is always available to provide support and guidance throughout the funding process.
Competitive Rates and Terms
Finally, it’s important to choose a plaintiff funding company that offers competitive rates and terms. While plaintiff funding can be more expensive than traditional financing options, there can be significant variations in the fees charged by different providers.
When comparing offers from multiple funding companies, be sure to look at the total cost of the advance, including all fees. Don’t be afraid to negotiate for better terms – a reputable funding company will be willing to work with you to find a solution that meets your needs.
At Mayfair Legal Funding, we offer competitive rates and flexible terms to suit your unique situation. Our team will work with you to find a funding solution that fits your budget and helps you achieve your goals.
Takeaways and Next Steps
Plaintiff funding can be a valuable tool for anyone involved in a lawsuit who needs financial support while their case is pending. By providing a cash advance against your future settlement, plaintiff funding can help you cover your living expenses, pay your medical bills, and level the playing field against deep-pocketed defendants.
If you’re considering plaintiff funding, we encourage you to:
- Research your options and choose a reputable provider
- Carefully review your funding agreement and ask questions about anything you don’t understand
- Use your advance wisely and only for necessary expenses
- Stay in communication with your attorney and funding company throughout the process
At Mayfair Legal Funding, we’re here to help you every step of the way. Our experienced team can answer your questions, guide you through the application process, and provide the financial support you need to fight for the compensation you deserve.
Is Plaintiff Funding Right for You?
If you’re involved in a lawsuit and are struggling to make ends meet, plaintiff funding may be a good option for you. With a cash advance against your future settlement, you can cover your expenses and focus on your case without worrying about financial stress.
At Mayfair Legal Funding, we specialize in providing plaintiff funding to clients across the country. Our team has the experience and expertise to help you get the financial support you need quickly and easily.
To learn more about plaintiff funding and how it can help you, call us today at (888) 357-1338 or apply online at mayfairlegalfunding.com. Our friendly and knowledgeable representatives are standing by to answer your questions and help you get started.
