Pre-Settlement Funding for Dog Bite Cases: Pros and Cons
Pre-settlement funding, or a lawsuit loan, is becoming a popular way to help people pay for the cost of legal representation when they are dealing with a dog bite case. With pre-settlement funding, a plaintiff can receive a cash advance on a lawsuit judgment or settlement before their case has actually been won or even decided in court. Lawsuit loans have the potential to be extremely beneficial to people in dog bite cases, as the costs of legal representation and medical bills can be quite substantial. However, there are both pros and cons to receiving pre-settlement funding for dog bite cases. It is important to thoroughly consider all of them before making a decision.
Pros of Pre-Settlement Funding for Dog Bite Cases
The primary benefit of pre-settlement funding for dog bite cases is that it can alleviate financial stress. Dog bite cases can be incredibly expensive, as medical bills may need to be paid both for immediate and potentially ongoing treatment. Additionally, legal fees can be substantial depending on the complexity of the case. Pre-settlement funding can provide enough cash to pay for a lawyer upfront, helping to ease the financial burden associated with a dog bite case.
In addition, pre-settlement funding can be beneficial in providing security and peace of mind. A lawsuit loan can allow a plaintiff to take their time negotiating with an insurance company, rather than feeling pressured to settle quickly. Additionally, it can also give a plaintiff the financial power to reject an offer and instead pursue a jury trial if they believe it provides them with the best chance at receiving full and fair compensation.
Last, pre-settlement funding can also provide the funds needed to pay for other expenses associated with a dog bite case, such as travel costs or expert witness fees. This can be especially helpful if a plaintiff is unable to return to work due to their injuries and is thus unable to pay for expenses related to their case.
Cons of Pre-Settlement Funding for Dog Bite Cases
Though there are certainly benefits associated with pre-settlement funding for dog bite cases, it is important to understand that there can be drawbacks as well. First, pre-settlement funding has the potential to significantly drive up the cost of a case. Loan providers charge an interest rate and fees which do not have to be paid as long as the plaintiff wins the case. However, this money must be paid if the plaintiff loses the case. Additionally, the interest rate can be substantial and can quickly add up to more than the initial amount given to the plaintiff.
Second, taking a lawsuit loan can limit a plaintiff’s ability to negotiate for a larger settlement. When selecting a pre-settlement funding provider, the plaintiff must fill out a simple application and enter into a contract agreeing to pay the advance back. If a plaintiff is unable to negotiate for a settlement larger than the advance, the total amount that must be paid to the loan provider can be quite high.
Lastly, pre-settlement funding requires a degree of risk taking that may not be appropriate for each individual case. If the plaintiff is unable to negotiate a settlement or win their case, they may be stuck with the loan provider’s interest rate. Additionally, loan providers may not be willing to give the full amount that the plaintiff is expecting, which could leave the plaintiff unable to pay all of the expenses associated with the case.
In conclusion, when deciding whether to pursue pre-settlement funding for a dog bite case, it is important to thoroughly consider all potential pros and cons. Pre-settlement funding can be a great way to alleviate financial stress, provide security and peace of mind, and cover associated expenses. However, it is important to understand that it can also add significantly to the cost of a case and may leave the plaintiff at risk of taking on more debt than they can afford.
