How Much Does Settlement Funding 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!
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.
As with any situation in monies are advanced, efforts will be expended to minimize risks involved prior to funding your case. Many applicants fail to disclose previous funding obtained. Previous funding in a specific case is another factor taken under consideration to assess the cost inherent in providing settlement funding.
Frequently, both applicants and attorneys want to know how settlement funding will affect the judgment obtained. Many possibilities come to mind, and we will discuss the most likely scenarios.
Once the settlement loan is provided, your case may settle for more than expected. This result would produce both a larger award for the plaintiff and, in most instances, a higher fee for the attorney.
If the settlement funding is provided and the case settles for what you originally anticipated, neither your award nor the attorney’s fee is likely to be affected. Settlement loans allow, in many cases, the plaintiff to hold out for a better settlement than may otherwise be obtained if forced to settle prematurely due to limited finances.
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.
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.
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