Pre-Settlement Funding for Qui Tam Cases: What You Need to Know
Pre-settlement funding for qui tam cases can offer financial relief when an individual is taking on a case against a large company. Qui tam cases, also known as whistleblower cases, are filed by individuals who are accusing a company of fraud, waste, or abuse. These cases are often financially costly and lengthy for the individual involved, as the company has the power to use costly legal tactics throughout the case. Pre-settlement funding helps people who are taking on whistleblowers cases to cover the bills and still maintain a reasonable quality of life during a long and often complex lawsuit.
What is Pre-Settlement Funding?
Pre-settlement funding is the process of getting a loan to cover your expenses while you wait for a settlement to be reached in a qui tam case. It is a way to make sure you have the financial resources to support yourself and your family while you wait for the case to be resolved. The pre-settlement loan will help pay for bills and other expenses as you wait for the case to analyze and conclude. Depending on the lender and the type of lawsuit, there may be specific guidelines you must follow in order to receive pre-settlement funding.
How Does Pre-Settlement Funding Work?
The process of obtaining a pre-settlement loan is relatively simple. Once you contact a lender, you will provide them with information about your case and the potential settlement you are expecting. The lender will then perform their due diligence to assess the merits of the case and determine whether or not you qualify for pre-settlement funding. If you are approved, the lender will provide you with the loan amount and you will begin to make payments based on the terms of the agreement.
The funding can be used for a variety of things, such as medical bills or personal expenses. After the case is resolved and the settlement is reached, the amount you borrowed with the pre-settlement loan will be deducted from the total settlement and then the balance will be given to you minus any fees associated with the loan.
Who Qualifies for Pre-Settlement Funding?
In order to qualify for pre-settlement funding, you must have a case against a large company. This is because the funding is intended to help offset the expensive legal costs and bills associated with a lengthy lawsuit. Cases may take months, even years in some cases, to resolve. During this time, the individual involved in the case needs to maintain a standard of living and the pre-settlement loan can help with that.
You must also be able to show the lender that you have a valid case and that you are expecting some form of compensation at the end of the lawsuit. This will help the lender make an informed decision about offering pre-settlement funding. If the lender is unable to assess the merits of the case or if they feel that you may not be able to receive a settlement, pre-settlement funding may not be an option for you.
Are There Risks With Pre-Settlement Funding?
The biggest risk associated with pre-settlement funding is that you may not receive a settlement. If this is the case, you may find yourself having to repay the loan in full. It is important to assess the merits of the case before applying for pre-settlement funding and make sure that you have a good chance of receiving a settlement. Additionally, pre-settlement funding typically comes with a variety of fees associated with the loan. These fees can be in the form of interest or additional costs for the purpose of applying for the loan. It is important to be mindful of these fees when calculating the total amount of money you will need to repay after a settlement is reached.
Conclusion
Pre-settlement funding for qui tam cases can be a helpful way to make sure you have the financing you need during a lengthy and complex lawsuit. By researching lenders and understanding the intrinsic risks associated with pre-settlement funding, you can ensure that you have the financial resources to properly pursue a case against a large company. Additionally, it is important to always striving to assess the merits of the case and understand that if the lawsuit is unsuccessful, you may still be responsible for repaying the amount you borrowed.
