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What are Pre Settlement Funding for? – Know the Basics

Those involved in litigation as plaintiffs should be aware of the availability of the cash advances on pending lawsuits. In most cases, plaintiffs will often pay their lawyers on a contingency basis and where their cases do qualify and merit, they will receive a lawsuit cash advance on the pending lawsuit. The lawsuit loans are as well known as pre settlement funding.

Talking of cash advances on pending lawsuits or as alternatively known pre settlement funding, this is one that has had a lot of misconceptions surrounding it as a concept or idea. Check this guide out for some of the facts that you need to know of when it comes to the whole idea and concept, and how it operates, lawsuit cash advances or pre settlement funding.

Generally, when we talk of pre settlement funding or lawsuit cash advances, these are advances awarded to plaintiffs against the likelihood of the anticipated award or legal fee. They can be referred to as pre settlement funding, lawsuit loans and lawsuit lending and they all are cash advances on some pending litigation.

One thing that should be clear is that they are referred to as lawsuit lending or lawsuit funding, basically being cash advances on a pending lawsuit and this is for the fact that they are advances and not to be seen to be operating as the traditional loans. Of course this is a point that is to be noted going forward even considering the fact that with these forms of funding for a lwsuit, there will be no monthly payments, upfront fees and points as we have in the traditional loans. The application for these cash advances is free and you may only have to pay for some fees that may be associated with the advance like the origination fee and the underwriting fees. You are not obliged to pay the advance back in the event that you lose your case. As such, the lawsuit lending loans are considered to be non recourse loans looking at the fact that the plaintiff to whom they are advanced will be not under any obligation under contract to repay the funding company the amount advanced in the event that they lose the case or where the proceeds are less than what there is in the funding contract or agreement.

Actually the pre settlement funding alternative is one that would be a sure alternative for those whose cases may take some few months or where the settlements are likely to be delayed. In the event that you are the plaintiff and have looked at all options there are for the case at hand to fund it, you may be served well by the cash advance for pending lawsuits to help you out.
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