Can I receive pre-settlement funding for a product liability case?
Pre-settlement funding, also commonly referred to as a lawsuit loan, is an option for those who have been injured due to a faulty product to receive a payment before their lawsuit is resolved. In many cases, pre-settlement funding can help cover medical expenses and other costs associated with the litigation process. Pre-settlement funding is available for those who have initiated a product liability case.
Product liability cases involve a manufacturer, distributor, or seller of a product that causes harm to a consumer. The consumer will usually sue the responsible party for damages. If a jury decides the responsible party is liable for the damages, the injured party can receive a financial award. Before then, it may be necessary to wait through the litigation process while medical bills and other costs rise. Pre-settlement funding can help by providing a loan to the injured party to cover these costs.
How pre-settlement funding works
When an injured party opts for pre-settlement funding for their product liability case, a lawsuit loan company will usually evaluate the case and provide a loan amount based on how much the jury is likely to award. The pre-settlement loan will generally cover expenses such as medical bills, lost wages, any legal costs, and other damages involved in the case.
For a product liability case, pre-settlement funding can be a lifesaver. When a person has been injured due to a faulty product, they may find themselves in need of money to pay for medical bills and other costs associated with going to court. Pre-settlement funding can provide the financial help that is needed to make ends meet until the case is resolved.
Risks of pre-settlement funding
While pre-settlement funding is an excellent way to receive money before a product liability case is resolved, there are certain risks to consider. One of the primary risks is that the loan amount may be greater than the jury awards after the case is resolved. If this occurs, the loan company can keep the excess funds as payment for their services.
Additionally, pre-settlement funding can take some of the control away from the injured party. The loan company will usually make all decisions related to the case. This can be especially true if the loan company wants to settle for a lower amount than would otherwise be awarded.
What to consider before taking out a pre-settlement loan
Before taking out a pre-settlement loan for a product liability case, it is important to consider all of the risks associated with the loan. This includes understanding the loan company’s fee structure and the potential impact it has on the outcome of the case. It is also important to understand the loan company’s terms and conditions, as they can affect the loan amount and the amount of time it will take to repay the loan.
It is also important to understand the terms of the agreement with the loan company. Many pre-settlement loan companies will take a percentage of any settlement or jury award as payment for their services. It is important to understand and agree to the terms of the agreement before taking out a pre-settlement loan for a product liability case.
When dealing with product liability cases, pre-settlement funding can provide much-needed relief from the financial strain associated with a jury trial. However, it is important to understand the risks associated with the loan before agreeing to any terms or conditions. Pre-settlement funding can be a great way to receive money before the case is resolved, but it is important to fully understand the terms and risks before taking out a loan.
