Blog

The History of Lawsuit Funding

lawsuit-funding

If you’ve been injured through no fault of your own and you are seeking legal compensation through the courts, you may find yourself in a difficult financial situation. Injuries you sustained as a result of another’s carelessness may prevent you from working or paying your household and medical expenses. It may take many months – even years – to reach a settlement.

Before the concept of lawsuit funding came into existence, persons who found themselves in this predicament had to rely on credit cards, personal loans, and other means to get by, often facing eviction, foreclosure, and other dire consequences. Statistics show that more than 62% of the funds provided to plaintiffs through lawsuit funding are used to avoid a foreclosure or eviction. In many instances, plaintiffs opted to settle for lesser amounts or were faced to deal with big insurance companies willing to “wait it out.”  Legal funding leveled the playing field, giving litigants the opportunity to endure a lengthy legal process without being pressured to settle by companies or corporations with “deep pockets.”

The American Legal Financing Association (ALFA) was created in 1997 to help alleviate this problem. The ALFA developed standards for the emerging legal funding industry and also acts as a liaison between the general public, government officials, and the news media. Lawsuit funding (also known as litigation financing or pre-settlement funding) has risen from relative obscurity more than 20 years ago to being a commonplace and widely-accepted financial solution for those persons going through lengthy and expensive personal injury legal proceedings. In fact, there are now more than 40,000 funding applications per month that the ALFA reviews for their members.

Since the advent of legal financing, litigants can now take advantage of the many benefits this form of pre-settlement lawsuit funding provides. The money advanced through this process can be used for a variety of purposes, including paying the rent or mortgage, car payments, college tuition, groceries and utilities, and even medical expenses.  Another important benefit is that people who have credit issues are no longer at the mercy of banks and other financial lending institutions, since the funding is based solely on the merits of one’s particular case. Proceeds are advanced based on the anticipated settlement if the plaintiff wins their case. Therefore, plaintiffs in a personal injury lawsuit are not required to fill out any credit applications in order to get a lawsuit cash advance because the funding is NOT considered a loan.

Most importantly, the company issuing the money assumes all of the risks. This is called a “non-recourse” cash advance. Simply put, it means that the plaintiff does NOT have to pay one dime of the cash advance back if they lose their case. Additionally, the plaintiff’s attorney is encouraged to be actively involved in the legal-funding process. They are often consulted to ensure that their client’s interests are best served by a lawsuit cash advance, and that the legal facts of the pending litigation are properly represented.

If you, or someone you know, is facing a lengthy and potentially financially ruinous personal injury lawsuit, then you owe to yourself to investigate the many benefits of pre-settlement funding from Global Injury Funding. Our experienced and compassionate professionals will guide you through the process every step of the way. Our online application process is simple and straightforward. After your application is submitted, our team of legal-funding experts will get right to work evaluating your case. Once approved, you can receive your funding in as little as 24 hours. We can even deposit the funds directly into your checking account.

While we sincerely hope that you never have to use our lawsuit cash advance services, rest assured that we’re standing by in the event that you do.

Comments are closed.

Contact Us

  • When authoring comments please try to include the Who? What? Where? When? and How? surrounding the circumstances of the accident.

    The more information we have initially, the better we can evaluate your situation.

Call Today: (800) 980-2278
10161 Park Run Drive, Suite 150 Las Vegas, NV 89145 - 1-702-228-2278
© Copyright 2014, All Rights Reserved
Powered by WordPress. Designed by WordPress Themes by ProGo