Settlement Funding – How Much Does it Cost?
Although customarily not the first question asked, it is a question on most, if not all, applicants’ minds. Much to the applicant’s consternation, there is no single answer to this question!
Costs for your settlement loan will vary, depending on the amount of the loan under consideration, the issues in the case that add to its complexity, in what stage in the litigation-process the case happens to be at the time the applicant requests the lawsuit loan, your chances of success in obtaining recovery on your claim, and when the case was filed. Further details in your case will be discussed with both you and your attorney once you submit your application.
Minimization of risk will be high on the lawsuit loan funder’s mind in assessing your case, as is true in all such ventures that are speculative in nature. Another impediment to funding occurs when the applicant fails to identify the fact that previous settlement loans have been obtained. Previous settlement funding in a specific case is another factor that will have an effect on your ability to obtain a lawsuit loan.
Many applicants, as well as their attorneys, want to know how a lawsuit loan will affect the judgment. There are a number of possibilities and we will discuss the most likely outcomes.
It is possible that your case will settle for more than anticipated once the settlement funding is provided. The plaintiff, in this scenario, obtains a greater judgment and the attorney, in most cases, receives a higher fee.
In cases in which settlement funding is provided and the case settles for what you expected, the award is not affected and the attorney’s fee remains unchanged. The advantage of obtaining settlement loans is that they allow you to pursue a larger settlement than may have otherwise been obtained if limited finances force you to settle prematurely.
If you have obtained a lawsuit loan and you recover less than anticipated, you, as well as all involved parties, will likely receive less than you may have otherwise. It is important to realize, however, that it is unlikely that the defendant would have offered as much as you ultimately recovered.
In the scenario in which you lose the case and there is no recovery, if you’ve obtained a lawsuit loan, you win! As a non-recourse instrument, settlement funding is only repaid if you obtain a recovery.
Looking to find the best deal on settlement funding, then visit us to find the best advice on settlement loans for you.
