Overview on Personal Injury
Lawrence University.org – To help you understand what Personal Injury Lawsuit Funding is all about, first you must familiarize yourself with personal injury. This is a legal term which refers to an injury that is brought about by another person’s negligence. Here are some situations that involve personal injury:
1. Workplace harassment
2. Vehicular accidents
3. Medical/legal malpractice
4. Harm triggered by defective products/drugs
Personal Injury Lawsuit Funding
If you have suffered from a personal injury, you have two choices to take to get justice for what happened to you. You can (1) file a lawsuit, or (2) choose an out-of-court settlement. Which one is a better choice? An out-of-court settlement is simpler but the problem with this is that you could end up with an amount that is a lot less than what you have bargained for. However, if you decide to fight it out in court, you may just be awarded a fair compensation.
Read more: Four Reasons Why You Don’t Need a Personal Injury Lawyer
Keep in mind though that when you take your case to court, this will cost you money, not only to address the legal fees but also to help you with the expenses you have incurred due to the injury. If you do not have sufficient financial resources, this is when you will need a Personal Injury Lawsuit Funding. What it does is to provide you the financial means to file a lawsuit as well as take care of other related expenses.
How it Works
Many lawsuit financing companies can offer this type of funding to you. How does it work?
1. They give you an advance loan so that you will have the needed finances to help you with your lawsuit.
2. If you win the case, they get a part of your settlement. If you do not win, they do not get anything.
If you may have noticed, this is a high-risk business due to it being a non-recourse loan so in order for such companies to profit, the fees they charge you are quite high. There are two types of fees: recurring fees and flat fees.
Read more: Good Reasons Why You Need to Avail the Services of a Personal Injury Attorney
Recurring fees means letting you pay every month until the total loaned amount is paid off; flat fees means paying only a percentage of the loaned amount the moment a settlement verdict is reached, and paying the rest at an agreed time.
