Pre-Settlement Funding for Wrongful Death Cases: What You Need to Know
Wrongful death cases can be devastating for the families and individuals involved, and they present a legal system with a complicated web of finances and emotions. The legal process involved and the financial burden related to bringing a wrongful death case often leads to families and individuals seeking pre-settlement funding for wrongful death cases. Pre-settlement funding serves as a type of legal loan for those who can’t afford the costs of pursuing a wrongful death claim.
Understanding the basics of pre-settlement funding for wrongful death cases is important for anyone considering a claim for the loss of a loved one. In this article, we’ll explain what pre-settlement funding is, who is eligible for it and some important information to know when making a decision to obtain financing.
What is Pre-Settlement Funding?
Pre-settlement funding is a type of loan offered to plaintiffs who are seeking civil damages for a wrongful death caused by someone else’s negligence or recklessness. The loan, which is offered by settlement funding companies, provides plaintiffs with financial assistance while they are in the process of negotiating a settlement or verdict with the wrongdoer or company responsible for their loss.
Pre-settlement funding offers a number of advantages to those facing financial challenges. First, it provides a much needed source of funds for people going through a difficult legal case. Funding companies don’t place a time limit on when a payment needs to be repaid, meaning that plaintiffs can use the money as needed to cover any associated costs such as legal fees, medical expenses and other related costs.
Additionally, pre-settlement funding is a form of non-recourse financing, meaning that the lending company won’t require payments or attempt to recover funds from you if your case is unsuccessful. This risk-free aspect of the loan makes it an attractive option for those considering filing a wrongful death lawsuit.
Who Is Eligible for Pre-Settlement Funding?
Pre-settlement funding is available to any individual or family with a valid wrongful death case against a defendant. Furthermore, the funding company will require some proof that the case has merit and a potential for success. This proof may come in the form of documents related to the case such as police reports, medical documents and witness statements.
It’s important to note that funding companies are not required to provide funds to every case that comes their way. Each situation will be evaluated objectively to determine whether funding is an appropriate solution for the individual in question.
Important Information to Know
There are several key factors to consider when determining whether pre-settlement funding is right for you.
First, funding companies will determine the amount of funding they are willing to provide based on a number of factors. This includes the strength of the individual’s case, the potential value of the settlement and the financial strength of the defendant.
Second, pre-settlement funding is not free. Funding companies typically charge a percentage of the loan amount as a fee, which can range from 7-15%. This means that if you are approved for a $20,000 loan, the fee could be anywhere from $1,400 to $3,000.
Third, remember that pre-settlement funding is intended to provide financial relief during the course of the legal process. It is not intended to finance the case or serve as a substitute for the damages received from a successful verdict. As such, you’ll need to ensure that you have adequate funds to cover any cost associated with the case in the event that you are unable to secure a successful outcome.
Conclusion
Wrongful death cases can be a complicated and emotional process. Those involved often face financial challenges as a result of the legal fees associated with bringing a case. Pre-settlement funding is a useful tool that can help individuals and families pursue a legal claim while maintaining financial stability. It’s important to understand the basics of pre-settlement funding and to consider all factors involved before seeking this type of loan.
