What types of cases are eligible for pre-settlement funding?
What is Pre-Settlement Funding?
Pre-settlement funding, commonly referred to as a “lawsuit loan”, is a financial service that permits plaintiffs who are embroiled in a legal dispute to receive cash advances against the future potential settlement or award of a lawsuit. This form of funding serves to provide the plaintiff with additional financial support, meaning that the plaintiff can pay for any and all related legal fees and their everyday expenses, such as food, rent, and utilities, without having to rely solely on their personal assets or income during the waiting period of a lawsuit.
This form of funding can be used by those involved in a variety of cases—including personal injury, medical malpractice, civil rights, employment and consumer protection cases, among others. Pre-settlement funding can enable plaintiffs to continue with their lawsuit without taking a huge financial burden on their shoulders.
Types of Cases Eligible for Pre-Settlement Funding
Pre-settlement funding is an option for those involved in many types of legal disputes. Below, we will discuss the types of cases that are most commonly eligible for pre-settlement funding.
Personal Injury Cases
Personal injury lawsuits involve disputes between two or more parties over damages to the plaintiff’s body, mind, and/or emotional state due to the negligence or misconduct of another individual or a company. Personal injury cases typically involve physical injuries or psychological distress caused by a vehicle accident or medical malpractice, defamation of character, wrongful death, or product liability.
The most common types of personal injury cases are automobile and motorcycle accidents, medical malpractice, premises liability (slip and fall), product liability, and wrongful death. Pre-settlement funding is available to those involved in personal injury cases, and the advances provided can help the plaintiff with their medical and legal bills, as well as with covering their everyday living expenses.
Employment Cases
Employment law involves litigation related to rights and obligations associated with employment contracts, labor laws, and workplace safety regulations. Employment cases can involve disputes related to rights and salaries, occupational safety and health standards, whistleblower protection, overtime rates, and harassment or discrimination in the workplace. Pre-settlement funding is available for those involved in employment disputes to help cover their traditional living expenses, as well as their legal fees, during a legal battle.
Civil Rights Cases
Civil rights cases involve disputes over rights that are granted to individuals by the law regardless of race, gender, age, or social status. Civil rights law is designed to ensure that all individuals are treated fairly and equally by the government and society. Pre-settlement funding may be available for those involved in civil rights disputes, such as those related to workplace discrimination, housing discrimination, racial profiling, voting rights, and religious liberty.
Consumer Protection Cases
Consumer protection law applies to disputes involving any type of transaction between a consumer and a business, including those related to deceptive sales tactics, faulty products, fraud, and product warranties. Pre-settlement funding is available to those involved in consumer protection cases in order to help the plaintiff cover any related medical or legal bills and their everyday living costs.
Conclusion
Pre-settlement funding can be a helpful and necessary tool for plaintiffs involved in legal disputes, helping to provide them with financial stability while their case is pending or during a settlement. Common types of legal disputes eligible for pre-settlement funding include personal injury cases, employment cases, civil rights cases, and consumer protection cases. With the help of this type of funding, individuals can cover their legal fees and traditional living expenses, making a lawsuit less financially burdensome.
