When many people are involved in a lawsuit, they may need funding for certain expenses while they are awaiting the outcome of their case. In these instances, one of their best options may be pre-settlement funding, also known as a lawsuit advance. However, since this is an area of which few individuals have much knowledge, their first impression is that these advances are in fact lawsuit loans. Yet with additional research, they discover this type of funding is in no way a traditional loan.
Rather than a loan, legal funding is an asset purchase. By this, the lawsuit advance is instead an advanced payment the plaintiff or their attorney will receive at a future date if the lawsuit has a favorable outcome for the plaintiff. And most importantly, this method of funding can apply to lawsuit outcomes that happen due to either courtroom verdicts or out-of-court settlements.
In these instances, one of the first questions people have is wondering if these advanced funds will need to be paid back at a later date. While with any type of traditional loan the money paid out is expected to be paid back to the lender, legal funding does not work in this manner. Instead, if for any reason the plaintiff’s lawsuit is unsuccessful, the money does not have to be paid back. Since these funds are asset purchases, this is one of the biggest benefits of using this method of legal funding.
In many of these situations where plaintiffs have had their cases resolved but are awaiting payment of the money they have been awarded, post-settlement funding is a perfect option. Since advances can be made to both plaintiffs and attorneys, they can not only help cover living expenses, medical bills, and other expenses for the plaintiff, but also help their attorney cover the costs associated with litigation, which often add up to large sums in many cases.
If you are a plaintiff in a lawsuit and have questions about lawsuit loans, call on the experts at Tribeca Lawsuit Loans. By doing so, you can learn more about how you can get the money you need to cover living expenses, medical bills, legal fees, and other costs associated with your lawsuit. Rather than sit back and endure unnecessary financial hardship while awaiting the compensation for which you and your attorney fought so hard, let us help you get the funding you need.