questions on settlement checksEarly access to settlement money. it is important to understand that even if a settlement amount has been agreed upon, the processing of the check takes time.

Bear in mind that the settlement money typically comes from the proceeds of the defendant’s insurance coverage. Obviously, that part alone will take long to process. The insurance company has to perform investigations and evaluations of the circumstances surrounding the personal injury case before releasing the insurance proceeds.

There’s also the matter of processing the legal documents, getting the papers signed and approved by the judge who presided over the personal injury case. The lawyer representing the claimant or plaintiff, has to deduct his professional fees, court fees and applicable duties and taxes before releasing the plaintiff’s share of the settlement.

Apparently, access to a settlement check will not be as easy to obtain, considering that the check processing aspect takes time to complete.

The Role of Lawsuit Funding Companies in Personal Injury Settlement Cases

In the meantime, while the plaintiff of a personal injury case waits for the release of the settlement check, he remains incapacitated and unable to report for work. The situation leaves him without a source of income to use in sustaining his basic cost of living and other necessities.

Fortunately, an entity known as a lawsuit funding company is in the business of offering lawsuit loans or pre settlement funding to claimants. Rather than be stressed out with worries over meeting his immediate financial obligations, accepting a lawsuit loan  or pre settlement funding is the most practical solution to such a predicament.

Understanding the Basic Elements and Conditions of a Lawsuit Loan

When a legal settlement has been reached and a ruling has been handed down by the presiding judge, the plaintiff stands to receive the compensatory damages due him as outcome of the lawsuit.

collection of settlementThis denotes that if the plaintiff took on a lawsuit loan, the lawsuit funding company will be able to collect the entire amount of pre settlement funding availed by the plaintiff. In addition, either a flat fee or interest charges will be imposed, depending on the terms and conditions to which the plaintiff and his lawyer agreed upon at the time when the lawsuit loan was granted.

Now if for some valid and legal reason, the court did not rule in favor of the plaintiff claiming redress for a personal injury, the lawsuit funding company cannot seek repayment of the lawsuit loan from the plaintiff.