How Hulk Hogan Won $140 Million By Using Lawsuit Funding

Hulk Hogan is a superstar among superstars in the world of professional wrestling. From his start with the AWA to his explosion with the WWF and WCW, Hulk Hogan was the biggest draw ever in sports entertainment. A larger-than-life athlete, he would sell out stadium after stadium. His merchandise made him millions. He even transitioned into becoming an actor. He was truly the first wrestler to ever become a household name.

The fame and notoriety came at a price, though. Throughout his career he has been involved in scandals (steroid trials, videos of him making racist comments) and lawsuits (against his doctor). The biggest, however, came when media blog Gawker posted clips from an illicit tape featuring the Hulkster and a then-married woman. Hogan sued for defamation of character and invasion of privacy, among other things.

Hogan had an issue: he had a case, but not enough money to fight it

https://www.loanquery.com/

https://www.loanquery.com/

One would imagine that Hulk Hogan was rolling in money from all his success in wrestling. While that may have been true, he was no longer at an age where he could perform and rake in the cash. What’s more, Gawker and the defense attorneys had a gamplan: stretch this lawsuit on as long as possible. Request more information, demand more documentation, file appeals and motions to prolong the suit. When all was said and done – from the filing of the first cease and desist letter to the agreement on a settlement amount – the case lasted nearly four years.

The thing is: Hogan probably couldn’t have lasted four years. Litigation is expensive, even when only one attorney is involved. Hogan needed to hire a team of legal experts to win the case. Gawker, being a multi-million dollar enterprise of its own – had hired a comparable team. This was set to be a drag-out brawl.

Hogan’s legal turned to legal funding to have a fair chance at obtain justice

So how did he make it through to the end? An outside source (in Hogan’s case it was billionaire Peter Thiel) came along to provide funding to Hogan to continue the case. Even the legend Hulk Hogan could not last through the brutal trial without some outside help, and he once owned an $8mm estate in Bellair. The truth is everyone needs some financial help from time to time, especially when dealing with a lawsuit.

How did Gawker react to the financial backing? They were shocked and dismayed that he was able to receive the lawsuit funding to put him on the same playing field as the defendant. They fought aggressively to find out how he was able to receive the funding, but to no end. In March 2016, a judge issued a verdict of $140,000,000 to be paid to Hogan. While he won’t ultimately receive that much – Hogan and Gawker agreed in November 2016 to settle for a lesser amount – it shows that the pre-settlement funding helped.

Gawker has probably hoped Hogan would accept a smaller amount, knowing he needed to wrap the case up. With the loan he received, Hogan could last as long in the case as Gawker. They thought that having an outside source might damage Hogan’s cause, but it actually helped. A jury found Gawker guilty and a judge handed down a large judgment.

How everyday people can benefit from legal funding just like Hulk Hogan did, no matter the size or scope of the lawsuit

What is the applicability of this in everyday life? Does everyone who has a lawsuit know a billionaire who’s ready to bankroll them? Obviously not.

Companies just like ours, Nova Legal Funding, fund the lawsuits of everyday people on a regular basis and on a national scale. Our goal at Nova Legal Funding is exactly the same as Peter Theil: to put the less-well-off plaintiff on an even playing field with the insurance giants, which results in cases settling for their true value.

Could Hulk Hogan have gotten a $140mm judgment without outside funding? It’s impossible to say for sure. However, what is known is that the defendant was outraged that it happened because it no longer had the upper hand. The end result is also known: a huge verdict and a victory for the Hulkster.

The post How Hulk Hogan Won $140 Million By Using Lawsuit Funding appeared first on Lawsuit Loans & Pre Settlement Funding | Nova Legal Funding.

How to Maximize Your Personal Injury Settlement in 3 Easy Steps

maximize your case valueNot every lawsuit is worth a million dollars. If it were up to the insurance giants, no lawsuit would be worth a million dollars. It’s their goal to minimize what they have to pay out on any accident case to keep their shareholders rich. They’ll try every tip, trick, and legal loophole to avoid paying you the settlement you deserve.

Your future doesn’t have to be a crap shoot, though. There are 3 easy things you can do after you’ve had an accident to help guarantee that you receive adequate payment for your pain.

Step 1: Document everything

Regardless of how your proceed – whether working directly with your insurance company, trying to settle directly with the guilty party, or hiring a personal injury attorney – it is vital you make sure you document everything. Make sure you obtain something showing that the other guy was at fault. If it’s a motor vehicle accident, get a police report. If they aren’t obligated to fill one out in your state, or if the guilty driver tries to convince you not to call the police, insist that you do. If you can’t get an incident or accident report (if the accident was a slip and fall on private property, for example), get the contact info of any witnesses who saw the incident. Try to get them to make a statement that day, but if it has to be later, do that.

Take pictures of the scene with your smartphone. Whether it’s a car accident, a fall on defective stairs, or someone leaving you harassing notes, keep all the evidence you can. If you go the route of hiring an attorney, he or she will also be doing this, but it never hurts to cover as much ground as you can yourself.

Step 2: Consult with the right people

First off, it’s important to hire the right attorney. You can do that by asking your friends and family for recommendations, doing research online, and finding a law firm whose experience matches what you need. Hiring the wrong attorney could mean getting a poor settlement or losing your case altogether!

It doesn’t stop there. Make sure you contact the proper medical providers. Your general practitioner is a good place to start, but make sure you’re seeing the proper specialists for your continued treatment. Going to your Uncle Bud who has taken a few massage classes isn’t the right way to go. See medical providers who specialize in your need. Seeing the wrong specialist (or seeing no doctors) can indicate that your injury isn’t severe and that could be very bad for your lawsuit.

If your case is more involved, like a malpractice case or a defective product case, make sure you work with your attorney to hire the best experts. Here you may want to let your attorney take the lead, but if it looks like the wrong people are being contacted, keep doing your research to make sure your case has the strongest people possible on your side.

Step 3: See it through to the end

This one is so important. Going to the emergency room the day of the accident but doing nothing afterwards tells a judge that you aren’t really injured. Missing court dates because you had better stuff to do would indicate to a jury that the defendant is probably in the right. In short, LISTEN to your doctors and your attorney.

If your doctors prescribe for you to go to physical therapy 4x a week for three months, make every one of those 50 appointments. If you start to feel better after a month, that isn’t a reason to stop the treatment. Your doctor knows more about medicine than you do, and when she recommends something, it’s important that you follow that advice. Of course, if you feel she is way off base, it’s okay to get a second opinion before moving forward.

Just as important is to be on the ball on the legal side. Don’t miss a court date. It will be difficult, but make every appointment and sign and return every document your attorney requires quickly. If you have to miss an appointment, don’t just skip it. Let the attorney know in advance so he can reschedule. If you are unreliable in court, it will destroy your chances of a fair settlement.

Sometimes it’ll be hard to make it all the way to a verdict, especially if your case drags on for years. This is particularly true if you can’t work because of the accident and the bills keep piling up. There are companies out there who can help you financially make it through to the end. Getting a pre-settlement loan, or a cash advance, can give you the lifeboat you need to make it to the finish line.

If you do these three things, you’ll be in good shape to get the appropriate justice for your life-changing injury.

The post How to Maximize Your Personal Injury Settlement in 3 Easy Steps appeared first on Lawsuit Loans & Pre Settlement Funding | Nova Legal Funding.

Risperdal Lawsuit Pre Settlement Loans – Get Funding Today!

Risperdal Lawsuit Pre Settlement Loans – Get Funding Today!

Risperdal lawsuit loans and pre settlement funding is now available for plaintiffs who’ve suffered from gynecomastia, a side effect of the harmful antipsychotic drug Risperdal (also known as Risperidone). If you can’t wait for your Risperdal case to settle, obtaining a cash advance on your pending lawsuit could help carry you over until your case settles.risperdal lawsuit settlement loans funding

If you’ve fallen on hard times and need financial assistance, Nova Legal Funding (NLF) can advance you cash before your Risperdal case settles. Waiting years for a payout is difficult, especially if bills are piling up as your injuries make it impossible to work. Also known as lawsuit loans, settlement funding is the solution to your financial problems.

If your Risperdal lawsuit already settled, you automatically qualify for funding. If your case is still pending, getting a cash advance on your future recovery is also very simple. To qualify for pre settlement funding on your Risperdal lawsuit, you or a loved one must have:

  • been prescribed (and consumed) Risperdal within the last 15 years.
  • been diagnosed with any of the following side effects: gynecomastia, stroke, substantial weight gain and diabetes.
  • hired a lawyer to litigate your case on a contingency basis.

If you meet the above three-point criteria, you instantly qualify for the following terms and conditions from Nova Legal Funding:

  • $500 to $100,000 in funding
  • Zero risk agreement: repay nothing if you lose the case
  • No upfront or monthly fees
  • No credit checks

risperdal lawsuit funding loans

Risperdal lawsuits —how it started and where it is now

Risperdal is a potent second-generation antipsychotic drug that was approved by the FDA in 1993 (and again in 2006 with Invega) to treat schizophrenia. The drug is manufactured and marketed by Janssen Pharmaceutical, a sister company of Johnson & Johnson—one of the largest pharmaceutical companies in the world.

Risperdal was a cash-cow for Johnson & Johnson, bringing in billions of dollars in profits for the company. To increase those profits even more, J&J’s Janssen Pharmaceutical began advertising Risperdal for off-label uses in children. The FDA never approved the drug for such uses as described by Janssen, which ultimately landed them in hot waters with authorities. State and federal regulators went after Janssen for marketing Risperdal to children, and they won. On November 4th, 2014 , J&J agreed to pay more than 2.2 billion dollars in criminal and civil fines to settle the matter, according to the New York Times. U.S. Attorney General Eric Holder accused Johnson and Johnson directly, blaming them for taking advantage of the most “vulnerable individuals” in our society.

Unfortunately, the government’s efforts were too late. By the time the hammer came down, thousands of children and young adults were taking Risperdal. Victims who experienced horrendous and embarrassing side effects became plaintiffs, stepping forward with lawsuits claiming damages in the millions of dollars.

Side effects of Risperdal and Invega: gynecomastia and others

Young boys—and some adults—who took Risperdal for off-label use suffered from Gynecomastia, a traumatically-embarrassing condition that causes breast tissue enlargement in males. The condition often leads to a great deal of emotional and psychological damage. Besides the emotional damage, young men and boys often undergo an operation to resolve their enlarged breasts. Breast surgery, also known as a Mastectomy, has it’s own share of dangers.

In addition to Gynecomastia, Risperdal is also responsible for the following side effects:

  • movement disorders: extrapyramidal symptoms (loss of control over movement) andtardive dyskinesia (involuntary, random and repetitive movements)
  • diabetes: while patients with schizophrenia are already at an increased risk of type 2 diabetes, studies suggest that Risperdal and Invega heighten such a risk.
  • heart problems and death: sudden cardiac death to an irregular heartbeat.

Risperdal verdicts and settlements (2012-2015)

Several cases have already gotten settled with J&J, some being confidential and others public.  The first Risperdal personal injury lawsuit to go to trial was of 21 year old Aaron Banks, who began taking RIsperdal at age 9. His injuries included enlarged male breasts and a damaged endocrine system, leading to excessive weight gain and psychological deterioration. Aaron’s case settled in September 2012 but was kept confidential.

Ever since Aaron’s justified win, the number of settlements with J&J only grew. In January 2014, almost 8 plaintiffs reached a settlement (which was again confidential). In February 2015, Austin Pledger won the biggest public settlement against J&J for $2.5 million dollars.

Many plaintiffs who’ve suffered the same injuries described above are still waiting for their settlements to come. If you’re one of them but need money now, Nova Legal Funding can help you get a cash advance on your pending Risperdal case.

How big of a Risperdal lawsuit settlement loan do you qualify for?

The amount of money you can get advanced on your pending Risperdal claim depends on multiple factors related to your case. No matter what your situation, Nova Legal Funding provides a minimum of $2,500 and a maximum of $100,000 to Risperdal-related claims. Whether you qualify for the lower or higher end of that spectrum depends on the type of injury you sustained, and how long you were taking Risperdal medication for (among other factors).  

Pre settlement loans of more than $10,000 are available for plaintiffs who were/are diagnosed with gynecomastia. If you suffered serious side effects after taking Risperdal and/or Invega and would like to know how much in settlement loans you qualify for, speak to a live representative in Nova Legal Funding by calling 800-760-0704.

The post Risperdal Lawsuit Pre Settlement Loans – Get Funding Today! appeared first on Lawsuit Loans & Pre Settlement Funding | Nova Legal Funding.

A Paralegal’s Guide to Plaintiff Lawsuit Funding

A Paralegal’s Guide to Plaintiff Lawsuit Funding

paralegal plaintiff funding guide

 

Paralegals handle quite a few tasks during their workday. They split their time between legal research, preparing for trials, administrative work and client interviews, just to name a few. As if that isn’t enough, the rising demand for pre-settlement funding by plaintiffs has added another task for paralegals to juggle.

When a client applies for funding, it’s often your job as a paralegal to take care of the application process with the funding company. The process can be streamlined or a complete headache. It all depends on which funding company (or broker) you’re dealing with. You don’t have control of which company the plaintiff applies with, but there are steps you can take to save time and protect your client from signing an unfavorable, expensive funding agreement.

This detailed guide will show you, the paralegal, how to make the pre-settlement funding process simple and efficient, no matter which company you’re dealing with.

This guide will discuss

  • what to tell your client before they apply anywhere
  • how to efficiently manage plaintiff funding applications
  • how to know whether or not your client is securing a fair deal
  • how to keep sensitive case documents confidential

What paralegals should tell their clients before getting pre-settlement funding.

Lawsuit funding should be a last resort. Advise your client not to seek funding unless they have tried everything else to find affordable financing. Explain to your client that interest rates in the lawsuit funding industry can be “reasonable,” but never cheap. In other words, lawsuit funding is expensive compared to more traditional lending options. This is because lawsuit funding is a nonrecourse investment, meaning it’s an extremely risky venture for the funder.

Things to discuss with the funder before you provide any documentation.

There are many “nonstarters” when it comes to qualifying a case for funding. It’s important to know what they are so you can notify the potential funder about them right away. This will save you and the funder time since you’ll avoid digging into the case for no reason.

While every funding company has its own nonstarters, here’s a list of the most common:

  • Previous funding. Many companies don’t fund cases that have been previously funded by other companies. When a rep from a funding company first makes contact, tell them if there’s a current lien from another company.
  • Soft-tissue injuries. Many funding companies don’t consider cases with soft-tissue injuries. Test the waters by telling the underwriter at the funding company about your client’s most significant diagnosed injury.
  • Plaintiff resides in an “unfundable” state. Lawsuit funding is not permitted in some states. Different companies operate in different states, so make sure to notify them of your client’s state of residence.
  • Stage of litigation. Some companies won’t consider funding a case if a lawsuit has not been filed. Make sure to let them know if the attorney has not yet filed a lawsuit.

How to keep case-related documents safe and confidential? 

You may have to forward sensitive medical and legal documents to funding companies on behalf of your client. This must be handled with care. Here are three security measures paralegals can use to protect their clients’ privacy:

  • HIPPA consent form. Require the funding company and the client to sign a HIPPA form.
  • Confirm client-and-funder contact. Always double check with the client to make sure they applied with the company that’s asking for the paperwork. Some companies are bold enough to contact a law firm without first consulting with the plaintiff.
  • Ask, “Are you brokers or direct funders?” Always know if the company you’re dealing with is a broker or a direct funder. If they’re a direct funder, they will probably be the only ones looking at the documents you send them. If they’re a lawsuit funding broker, those documents will most likely be in the hands of multiple individuals and/or institutions.
How to know if your client is getting a fair interest rate.

As a paralegal, it’s not your job to make sure the client gets a fair shake in pre-settlement funding—that responsibility falls squarely on the client. Nonetheless, the best paralegals break down the terms and fees of the agreement so the client can make an educated decision before they sign.

Explaining the main points of a funding contract to your client is easy if you know what to look for. You should know the answer to these important questions before explaining the contract to your client.

Compounded or simple interest?

Is your client being charged simple or compounded interest? This is an important part of any funding agreement—it’s the first question you should find the answer to. Depending on when the case settles, a compounded monthly rate of 2% could end up costing more than 3% in monthly simple interest. Explain to your client that a compounding rate exponentially increases the amount they owe the funding company as more time goes by.

Application fees?

Is your client being charged an application fee? Always look for “administration fees” or “processing fees” in the contract. The fees aren’t due up front, but they’re calculated into the payoff at the conclusion of the case. It’s also important to explain to the client that they will also be charged interest on the application fee. For example, if your client is being advanced $10,000 and there is a $300 application fee, the interest will apply to $10,300, not $10,000.

Broker fees?

If you know for a fact your client did not go through a broker, you obviously shouldn’t worry about a broker fee. Nonetheless, it’s always good to double check—lawsuit funding brokers often don’t expose their status as a middleman if they don’t have to. You can easily tell if a broker was involved by looking for an “origination fee” in the agreement. Also known as a “broker fee,” these can add up to as much as 15–25% of the funding amount. If your client was advanced $10,000, the broker would add as much as $2,500 from day one. Just like application fees, your client will be charged interest on $12,500 rather than the $10,000 that was advanced to them.

About the company who authored this post: Nova Legal Funding

This post was brought to you by Nova Legal Funding, a lawsuit funding company based in Los Angeles. Nova Legal Funding works with dozens of paralegals on a daily basis to provide low-cost financing to plaintiffs involved in any type of lawsuit. Whether you’re a paralegal or a paralegal-to-be, we hope you found this post helpful.

The post A Paralegal’s Guide to Plaintiff Lawsuit Funding appeared first on Lawsuit Loans & Pre Settlement Funding | Nova Legal Funding.

Pending Lawsuit Loans: 8 Facts & Tips Plaintiffs Should Know

 

Pending Lawsuit Loans: 8 Facts & Tips Plaintiffs Should Know

Pending lawsuit loans are sky-rocketing in popularity. pending lawsuit loans

Cash-strapped plaintiffs all across America are taking out loans against settlements to financially hold themselves over until their cases settle. 

Unfortunately, there isn’t much coverage on the industry by the mass media. This has resulted in the public being misinformed, leaving room for companies to take advantage of unsuspecting plaintiffs and their attorneys.

Also known as pending settlement loans, this service can benefit you greatly—but only if you score the right deal (and with the right company).

Like anything else, the key to getting a fair deal on pending lawsuit loans is knowing the ins and outs of the process BEFORE you apply anywhere.

This post will show you how to…

  • get the most cash against your lawsuit
  • get the lowest interest rates possible
  • secure a pending lawsuit loan without upsetting your law firm
  • get the funds as fast as possible

Loans against settlements – the ultimate list of tips for plaintiffs

Pending lawsuit loans (or loans against settlements) can be tricky and misleading for beginners. This article is meant to help you, the plaintiff, get the best deal when you apply for a loan against your settlement or lawsuit. In an industry full of sharks, making a smart decision can be the difference between paying 200% of interest or 35%.

Here we go:

FACT #1: Many companies are not direct in explaining the cost of the lawsuit loans they offer. 

**TIP: Always ask what the interest rate is. When a company charges high rates, they are less likely to be straightforward with you when you ask about it. Before answering any of their questions when you call, ask them this first: “What do you charge?”. If the representative doesn’t give a direct answer, be very wary.

FACT #2: Applying with brokers is expensive, slow, and more likely to aggravate your attorney. 

**TIP: Avoid working with brokers and only deal with direct pending lawsuit loans companiesLawsuit loan brokers can add an unnecessary 15-20% in cost to your transaction. Even worse, they will send your case information to dozens of different funding companies, all of which will call your attorney’s office at the same time. Needless to say, your attorney will not be happy.

FACT #3: Your law firm will respond to a funding company sooner if you mention their name in advance.

**TIP: Give your lawyer a heads-up before applying. Before applying for pending lawsuit loans, notify your attorney first. This will help your law firm be prepared for any document requests by the funding company. Remember: the whole process occurs between the funding company and your attorney’s office. Keeping the two parties in-sync can do wonders for expediency.

FACT #4: Finding the right company for your case is tough. 

**TIP: Ask your lawyer if he or she regularly works with/ or is aware of a professional pending lawsuit loans company. Why risk trying a new company if your lawyer already has a working relationship with one? Nonetheless, you must stay vigilant—just because your law firm works with a funding company doesn’t mean it’s the right one for you.

FACT #5: The more questions you can answer about your case, the fewer questions the funding company will have for your attorney. 

**TIP: Know your case like the back of your hand before applying. To get the process moving along faster, review all the general facts of your case before calling to apply. Every question you answer is one less question your attorney will have to spend time answering.

FACT #6: Funding companies move as fast as your attorney send them your case documents. This often takes time as law firms are usually very busy.

**TIP: For faster service, come prepared with case documents.If you want to get the ball rolling sooner, collect the following information from your attorney prior to applying: filed complaint, key medical reports, demand letter and police report (if you have a personal injury case). These are the general documents a funding company would request from your law firm. Having these documents available ahead of time will help you skip this step. 

FACT #7: The loan amount you qualify for is equal to 10-20% of your case’s entire monetary value. 

**TIP: Ask your attorney for the estimated value of your case before applying. This will help you expect a realistic amount when you apply for loans against settlements or lawsuits. Approximately knowing the amount you can qualify for will help you better manage your expenses down the line.

FACT #8: Pending lawsuit loans against settlements can be expensive. 

**TIP: After finding a direct funding company with low rates, only take what you truly need to survive. While the money is yours to spend as you wish, it is recommended you only use the cash for living expenses and other necessities. 

Looking for pending settlement loans? Nova Legal Funding is here to help. 

This post was written by Nova Legal Funding (NLF), a California lawsuit settlement loans company that serves plaintiffs nationwide. Unlike other companies, NLF is open and transparent about our funding process. As a result, we’ve been able to help a countless number of plaintiffs get loans against pending lawsuits. NLF provides funding to all types of cases, including but not limited to: 

  • General personal injury accidents
  • Car accidents
  • Defective products
  • Medical malpractice
  • Premise liability
  • And much more (for a complete list of the cases we fund, click here)  

Loans against lawsuits – are they for you?  

Loans against lawsuits are for plaintiffs who are injured and can’t wait for their cases to settle.

If you are in stable financial footing, it is not recommended that you apply. You should only consider getting loans against lawsuits if you truly cannot wait for your case to settle. Otherwise, waiting patiently for your case to settle is your best course of action. 

If you’re in an ongoing lawsuit and the bills are piling up, call Nova Legal Funding at 800-760-0704—or apply online by filling out the contact form at the top-right hand side of your screen.

The post Pending Lawsuit Loans: 8 Facts & Tips Plaintiffs Should Know appeared first on Lawsuit Loans & Pre Settlement Funding | Nova Legal Funding.

Opting for Legal Finance to Take Care of All Your Money Woes

Legal financing is essentially a cash advance on the future settlement or jury award you will receive. You are only eligible for it if you have filed a lawsuit (personal injury, wrongful termination, etc.) against a person or company, and you have a competent lawyer handling your case.

A lot of people shy away from legal financing because it charges higher interest rates compared to banks and credit unions. However, it also has its share of benefits. In fact, we’d go so far as saying that getting lawsuit financing has more benefits than drawbacks.

First of all, there is no financial risk on the litigant. If you lose your case, you don’t pay the lender anything. Secondly, it will enable you to pay all your outstanding debts, prevent you from declaring bankruptcy and even help you keep your home. In addition, with this kind of financing, you won’t be pressured to accept low ball out of court settlement offers because you won’t be desperate for money. Finally, you can even afford to pay expensive expert witnesses (doctors, psychologists, etc) that will further boost your case.

Obviously, this kind of legal finance loans is not for everyone. But if you have very few choices, if at all, then opting for a lawsuit finance would serve you well. Before deciding on which lender to do business with, see to it that you do your homework and compare rates from various lenders.

Where Can You Get Pre-Settlement Funding?

Pre-settlement funding is a finance service that gives plaintiffs an advance on their future settlement. It gives the plaintiff the benefit of having the financial resources he needs to pay for his expenses while awaiting the result of his case.

Banks and traditional lenders do not offer this kind of funding or loan. That’s because they’re concerned about the implications and the high risks associated with pre-settlement funding. It’s a non-recourse loan that puts a lien on the future settlement of the litigant. If they don’t receive a settlement or award, the lender gets nothing. Apparently, banks can’t be bothered with such high risk transactions.

But there are lenders offering settlement funding or cash advance. You can find them online. Due to the growing demand for this kind of financing, there are now many lenders offering such service. However, it’s imperative that you choose your lender carefully. This financing is largely unregulated and you could easily fall victim to unscrupulous lenders who charge sky-high fees on your loan. In fact, there are many horrible stories about plaintiffs paying double or even triple the principal amount. You don’t want to be one of them!

To prevent this from happening to you, you must take the time to scour the Web for your best options for lawsuit cash advance loans. Compare their rates and terms. Look into their background and read reviews about them. That way you can be assured you’re getting a fair deal.

Legal funding & Financing California

Pre-Settlement Loans Case Study

Explaining the benefits of pre-settlement loans may be difficult because a lot of people already have pre-conceived notions about this type of financing. So let’s just go ahead and look at one example to help you understand that these loan options aren’t so bad after all.

Mr. A. Collins was injured by a drunk driver while he was driving on the freeway one night in January of 2012. He had no health insurance, unfortunately but he did have a life savings amounting to $26,380 tucked away in the bank. But a month of hospitalization and 8 months of rehab cost him over $43,000 which means he still had to borrow money just to pay for everything.

Mr. Collins couldn’t find work months after his rehab and so he was in danger of losing his home, which was what he put up as collateral to get the money he needed to pay for his medical bills. He sued the defendant and was offered an out of court settlement of $50,000. Obviously, the litigant felt that was a low blow offer. Although he felt a lot of pressure because he had no money to pay his bills, he decided he could get the compensation he deserved if he went on with his lawsuit. What he did instead was to apply for one of those pre-settlement loans and received $70,000. Five months later, the jury awarded him $150,000. He paid back the lender $70,000 plus interest (about $6,000).

So, even though he paid a significant amount of money in interest charges, he’s still glad he chose this option otherwise he wouldn’t have gotten the $150k settlement.

 

Pre-settlement loan: understanding the basics

The pre settlement loan period is the time after which a plaintiff has brought a claim, but it has not yet been executed or a judgement has not been issued. At this time, the legal claim is normally still pending. Legal researchers have found that claims normally remain at this stage for an average of about 297 days. The “pre-settlement loans” is actually a cash advance against the future claims settlement. It is a payment that helps the person in need during some of the most troubling financial times they could ever face. They can help take care of daily expenses like bills and mortgages and provide financial help during such times.

These loans are not the same as traditional debt financing, and do not require monthly payments. Further, one does not have to pay if they lose their claim in court. Given these terms, there is always the allure to borrow more money than one actually needs. This might end up being a poor decision. Here are some important tips that will help you borrow the right amount;

Interest rates and fees

Before committing oneself, ask clearly about the interest rates and the fees involved. The best pre-settlement loan provider always make the process transparent. Still, it pays to find out whether there are any hidden costs or mandatory insurance fees before formally signing the agreement.

Pre-Settlement Loan: Case details

Being able to provide all the relevant details of the case at the time of application saves everyone a lot of time. The loan company will likely find it more difficult to approve the loans without all the details provided anyway. They will demand information like hard evidence, police reports and medical reports before the actual approval. Collect all this information from your lawyer and have them handy.

The lawyer

Your lawyer remains a good resource even when looking for a settlement company. Ask them for recommendations or talk to him about the company you finally choose.

The “pre-settlement loan” period is perhaps the most difficult time after a case has been lodged. With a good lawyer and pre-settlement loan company, you will be in the right hands legally and financially.

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