According to a 2016 New Yorker article, litigation funding—also known as a cash advance on a pending lawsuit—is a growing industry. The article reported that law firms have increasingly begun using litigation funding, with a fourfold increase in the industry since 2013, and that 28 percent of private practice lawyers use litigation funding. Specifically, litigation funding began in the late nineties, gradually moving into a three-billion-dollar industry by 2016. Keep in mind, this was three years ago, and the industry has continued to grow and flourish during those years.
If you are unsure of what a cash advance on a pending lawsuit involves, read on: many of your questions will be answered! If the case seems promising, the company buys a portion of the anticipated settlement or verdict amount.
If you are a plaintiff involved in pending litigation and you are wondering how you will continue paying your medical expenses and other bills, litigation funding could be for you. Litigation funding is different from a bank loan.
If for some reason, you lose your case, you are typically not responsible for paying back the cash advance. The only reason why you would be required to pay back an advance is you provided false information, committed fraud or breached the purchase agreement.
What Can a Cash Advance on a Pending Lawsuit Pay For?
When you receive a cash advance on a pending lawsuit, you can survive, financially, as you wait for your litigation to progress. You may have been unable to return to your regular job because of your injuries, therefore, unable to pay your regular monthly expenses. We may be able to help you through this difficult time.
Is Everyone Approved for a Cash Advance on a Pending Lawsuit?
The answer to this question is “no, not every person is approved for a cash advance on a pending lawsuit.” Once your application is received, and all relevant case documents acquired from your attorney, your case will be reviewed. The company will typically consider the merits of the case, the likelihood of success, and the amount of the potential settlement. Based on the outcome of the review, you will be advanced a certain percentage of the anticipated settlement or verdict amount. The typical plaintiff applying for and receiving a settlement advance are eligible for approximately 10 percent of the value of the case, which can vary depending on the injury sustained. We work with your attorney to determine the best plan for you.
How USClaims Can Help with a Cash Advance on a Pending Lawsuit
If you were injured as a result of the negligence of another person or entity, you may have filed a personal injury claim or medical malpractice claim. Your injuries may be severe enough that you need financial assistance to get back on your feet. Perhaps you are unable to work, therefore, unable to pay your normal monthly expenses. Perhaps you are unable to pay your medical expenses and are afraid you will be unable to receive treatment. Your ability to receive treatment for your injuries and assistance with your expenses can be limited, however, USClaims can help. At USClaims, pre-settlement funding can help you pay those unexpected injury expenses in anticipation of a court judgment or settlement. Call 1-877-USCLAIMS today for the information you need and deserve.