Pre-Settlement Funding for Mass Torts Cases: What You Need to Know
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When it comes to filing a claim for a mass tort case, waiting for a settlement to be reached or award to be finalized can take months or years. A settlement process is often lengthy and complicated, even when you’ve been awarded a sum of money on behalf of the class of plaintiffs. During this waiting period, many of those involved in the claim can find themselves in need of financial support. That’s where pre-settlement funding for mass tort cases comes in. In this article, we’ll discuss exactly what pre-settlement funding is, how it works, and who qualifies
Understanding Pre-Settlement Funding
In short, pre-settlement funding is the process of obtaining a sum of money prior to the completion of a settlement or verdict in a suit. Funds can be used for anything from paying medical bills to living expenses. The amount provided is determined by taking a number of factors into account, such as the estimated value of the claim, the amount of medical bills, and the amount of wages that were lost as a result of the lawsuit. Unlike a loan, pre-settlement funding does not require the recipient to make payments back. Rather, a percentage of the total settlement amount or award received by the plaintiff is given to the funding company.
Who Qualifies for Pre-Settlement Funding?
Mass tort claimants may qualify for pre-settlement funding if they have a viable claim that has been accepted by the court and are expecting to receive a financial award. Pre-settlement funding companies typically look at the type of claim being made, the amount of damages being sought, and any evidence that has been provided to the court, such as medical records, police reports, and witness statements. They also typically conduct their own research to determine the feasibility of the claim and the likelihood of them recovering their funds.
How Does Pre-Settlement Funding Work?
To obtain pre-settlement funding, applicants must first fill out an application with the funding company. The company then reviews the application and evaluates the facts of the case. If the application is accepted, the funding company will provide the applicant with a cash advance for a percentage of the estimated award amount. Once the settlement or award is finalized and the applicant receives a portion of the proceeds, the funding company will receive a percentage of the total amount as repayment.
The Benefits of Pre-Settlement Funding
Pre-settlement funding can be a useful tool for those involved in mass tort cases. For one, it alleviates the financial burden that can arise during the long and drawn-out settlement process. By providing funds upfront, claimants can continue to pay for necessary expenses without having to wait for the settlement or verdict to be finalized. Pre-settlement funding also reduces the risk for those involved, as they are no longer subject to the whims of the court system or to their legal team.
Conclusion
Pre-settlement funding for mass tort cases can be a great resource for those looking for financial assistance during a prolonged settlement process. By understanding how pre-settlement funding works and who qualifies for such aid, those involving in mass tort cases can ensure that their needs are met during a difficult time. If you find yourself in need of such assistance, reach out to a reputable pre-settlement funding company to get the information and resources you need.
