Pre-settlement Lawsuit Cash Advance

Pre-Settlement Lawsuit Cash Advance for Plaintiffs

A pre-settlement lawsuit cash advance is interim funding for a plaintiff who files a lawsuit, but finds money running out and has run out of financial options. Such a cash advance is intended to gain a hearing in court for an injured plaintiff who otherwise would not be able to finance the proceedings in order to obtain damages from the defendant. Meant to prevent forced premature settlements by cash-strapped plaintiffs, this litigation capital is only offered before any settlement.

This only makes sense. A settlement, by definition, is a negotiated contract that is legally binding. An outside funding company would not attempt to interfere with this contract, which legally ends the lawsuit a company would be interested in. These companies are usually composed of both attorneys and investors who have a business arrangement to make a profit from financing worthy lawsuits, and they maintain a business-like approach.

Non-Recourse Financing

These companies provide a pre-settlement lawsuit cash advance to an approved case on a non-recourse basis. This means the plaintiff does not have to repay any advanced funds under any circumstances. The company collects its fees according to the financial agreement all the parties signed--if the lawsuit is successful.

Should a judgment go against the plaintiff--that is, the lawsuit fails--then the plaintiff does not owe the company a penny. The pre-settlement lawsuit cash advance is always the plaintiff's to keep regardless of the outcome of the lawsuit. The plaintiff only owes the fees determined in the financial agreement signed by all if the plaintiff wins and so has funds to pay the fees.