Settlement Funding – How Much Does it Cost?

November 26, 2009 Filed Under: Loans

Applicants want many questions answered, but high on the list is the cost of settlement funding. It should come as little surprise that no single answer to this question exists.

Settlement loan costs will vary with the amount to be loaned, the case’s complexity, the case’s status in the litigation-process, the plaintiff’s likelihood of success in the claim, and the age of the case. After submitting your application, both you and your attorney will be contacted to discuss your case further and to address issues such as those previously identified.

Efforts will be expended to minimize risks with settlement funding, as is true in most situations in which money is advanced to an individual to pursue a specific goal. Failure to disclose previous funding frequently occurs. If an applicant has obtained previous funding, this is another factor that must be considered.

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.

The best possible outcome is that your case settles for more than anticipated after settlement funding has been obtained. In this scenario, you receive more money and your attorney, in contingency-fee cases, receives a higher fee.

If you have obtained settlement funding and your case settles for exactly what you expected, neither your recovery nor the attorney’s fee will be affected. Your ability to obtain a settlement loan is that you are able see the claim through to completion, and the recovery is likely to be larger than may have otherwise been obtained if limited finances had forced you to settle prematurely.

If settlement funding has been provided and the case settles for less than anticipated, you, as well as all involved parties, are likely to get less than you may have otherwise. However, it is unlikely that the defendant would have offered the amount awarded.

If you are a plaintiff who obtains settlement funding and you obtain no recovery, you win! This is a non-recourse instrument, meaning that you only repay it if you obtain a recovery.

Learn more about settlement funding. Stop by our site where you can find out all about lawsuit loans and what they can do for you.