Future Settlement Funding

Written by Michael O'Brien
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Future settlement funding occurs during special legal situations. When a settlement is agreed upon and some kind of monetary award given, time is sometimes a bit of a factor. Not all parties paying can afford to do so all at once. This can be a problem when that money is needed on an immediate basis.

Future Settlement Funding: Money Now

When a case is settled, money to pay for doctor and lawyer fees is often needed right away. When the defendant isn't able to pay all at once, a cash advance can be obtained to cover any immediate expenses. This kind of future settlement funding is a pretty safe investment for the companies providing these fundings. They know the money will be paid back to them eventually. As you receive your payments from the defendant, so will they.

In the case of extreme wrongdoing on the part of a business or individual, assets may need to be liquidated in order to cover the costs of a settlement payment. This can be an extremely lengthy process. In lieu of such circumstances, the court will often grant a statute of future settlement funding. In cases like these, the person paying the money is not required to do so until a certain date.

Again, a plaintiff cannot often wait. Taking out a loan from a bank or applying for a line of credit to cover these expenses in the meantime is one way to deal with the problem. Getting the funding from companies that specialize in this type of matter may be smarter. It is often the policy of such firms to not require repayment of the cash advance if the plaintiff doesn't get anything. Banks and credit card companies aren't usually so understanding.


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