How Pre Settlement Funding Companies Can Help Plaintiffs? Brian Young February 19, 2015 Mortgages A court can be described as an Governmental Institution, assigned with the authority to pass a judgment for legal disputes between two warring parties. They are used to uphold law and order of justice in criminal, administrative and civil matters according to the dictates of society. All persons living in a country have birth rights to bring their case to court. In like terms, even an accused can appeal for a defense to be produced in court before a judgment. In this article, information is given on pre settlement funding companies which help litigants in times of distress. Lawsuit can be described in simple words as a civil action produced before a court of law. In lawsuits, a plaintiff or a party stake claims to loss incurred because of a person’s (defendant) reactions, and request the court to provide a suitable or legal remedy. The defendant has to respond to the complaint given by the plaintiff. In case the judgment is ruled in the affected person’s favor, then the defendant has to give cost of damages incurred or court orders can be issued in order to enforce award damages, a right or inflict a permanent or temporary injunction to compel an act or prevent an act. As the words mean, “Pre settlement funding” is best used to describe the funds that are meant to endow the plaintiff who has claimed a lawsuit. The funds take precedence because it is given prior to the case being undecided either by the court’s decision or settlement which can drag on for several years. The funds come in handy for plaintiff who may be in need for medical care and financial stress. Having money gives the claimant a chance to either reject the defendant’s offer for resolving the case or wait for more time so that luck can change its favor or they get the required amount as compensation. The money is given on expectation that the claimant will finally receive money from the defendant. This money need not be refunded until the case gets cleared or has reached a settlement. Pre settlement funding companies figure out the money or funding that has to be provided to the claimant or plaintiff based on the assessment of case and whether the case can get completed in favor of their client with an award amount or settlement. The funds received during the course of case has to be refunded by the plaintiff although there will be changes in percentage of interest. Since the money need not be refunded if the plaintiff loses the case, the money is given to the plaintiff sometimes with a huge interest. These funds are useful to persons who have suffered an accident or high injury and are unable to work. Although one could have driven a motorcycle or car for fifty years, they can also meet with an accident because of someone’s negligence. The real discomfort is not the injury but the pain that the family has to go through regarding filling forms, attending hearings, at the same time taking care of expenses. Unlike getting loans from a bank, the funds do not bank on credits which come as a breather to many. In banks, if you do not have the required credit, you are not liable to get a loan, have to pay high interest to lenders, security deposits have to be taken for phone, electricity and cable, employment chances will be meager etc. The five benefits of pre settlement funding are given below: The fund is not given as a loan. Credit checks are neither conducted nor reports needed to settle for an amount. The firm for funding will work with the plaintiff’s attorney to verify if the case really qualifies relying on legal positives and negatives. Winning is important to the plaintiff, but even more important is to the company which has given funds. If the case is not decided in favor of the claimant, the money need not be refunded. It is hard to believe this aspect, but it is true. For getting a loan, anybody has to fill lots of forms, give assurances and apply. Attorneys are the best persons to get recommendation of prefunding organizations. The process is kept simple and the evaluation of the concerned case will be started as soon as possible. Any legal procedure can take some amount of time or it may move at a turtle’s pace, but the family expenses are to be taken care of. With funding, expenses such as payment of necessary bills will be taken care of and the plaintiff can ward off agents who want him/her to settle for a lesser amount. Delivery of the said/required amount can be given in minimum time depending on the company or organization. Money can be given in check or electronically transferred directly to your bank account. Going to a pre settlement organization should remain as the last resort for any plaintiff. If money is needed, they can always enlist the help of friends, relatives or other resources. However, in case of not having any sympathetic family members or friends, these funds can be considered as a boon for survival against all odds. Plaintiffs are advised to consult their attorney to recommend the best pre settlement funding companies in the market. They can offer valuable suggestions, make their client understand the pros and cons and then recommend the best one suitable. It is mandatory that the plaintiff properly reads all clauses and instruction before he/she signs the required document. Disadvantages Of Pre settlement Funding Just as there are advantages, disadvantages also occupy a part of pre settlement funding. Even some attorneys do not favor the scheme as they point some plaintiff might forget the funds received in times of duress or the attorney might be forced to opt for a settlement to save time and money. These attorneys emphasize on the importance of providing only a small amount to plaintiffs. In other cases, after the plaintiff receives the pre settlement amount, the case might drag on for more time. Although it is rare, the end money received as settlement will be less if the interest rate and amount received is more from the pre settlement funding companies. No related posts.