Pre-Settlement Lawsuit Loans
There is much written about the pros and cons for pre-settlement lawsuit loans. Some people think the interest rates charged are high, while other people want the instant approval of a sure thing – cash. Lets take a look at what a lawsuit loan actually is and then, you decide.
A pre-settlement lawsuit loan is a “non-recourse loan” made by Lance Lawsuit Funding to a plaintiff with a pending personal injury opr medical malpractice case who is working with a lawyer. A “non-recourse loan” is not a loan, but an investment made by the funding company into the plaintiff’s case or lawsuit. A traditional loan requires a personal guarantee and must be paid back to the lender no matter what. A “non-recourse loan” made by a lawsuit funding company is an investment made into the plaintiff’s case. In this sense, if there is no settlement then the money is not paid back by the plaintiff. The most obvious benefit of this is that the plaintiff is selling and the funding company is buying a percentage of the “risk” asscoiated with the plaintiff’s case. It is the old saying, that sometimes, “A bird in the hand is worth two in the bush.” In other words, regardless of what happens with the plaintiff’s case, them money advanced as a non-recourse loan is only repaid if there is a settlement or verdict.
Here are the facts about Lawsuit Funding that make it practical for the right people:
- There is no credit or employment history check
- Credit scores are not considered
- Most pre-settlement money requests are approved within 48 hours
- The money is “risk-free.” It is not paid back un less the plaintiff wins a settlement.
- The money may be used for anything.
- There are no monthly bills.
- Many people need immediate cash for life, but have no place to turn.
Is A Bird In The Hand Worth Two In The Bush?
So the question is whether a bird in the hand is really worth two in the bush when it comes to lawsuit funding. Does the plaintiff want to sell part of their possible settlement or jury verdict for a certain amount of money now – that is not repaid if they lose the case. Statistically, most medical malpractice cases are lost in court and the majority of other personal injury case are lost too. In our recent blog, “Lawsuit Loan or Settlement Insurance,” we provide national statistics from one court study that states in medical malpractice cases plaintifs win only 23% of the time and in other personal injury cases, like motor vehicle accidents, plaintiffs win only 59% of their cases. Even when the plaintiff wins the case a jury may not award enough money and there are lenghtly appeals. It only makes sense to sell part of that possible settlement now, for money in your hand that is not repaid if the case is lost, as opposed to gambling everything in court.
The non-recourse loan or investment into the plaintiff’s case works both ways. The funding company makes an investment into the plaintiff’s case that assures a certain sum of money in his hands in return for a percentage of the settlement. But selling the risk of lost assocated with a lawsuit also has a price. This is mark-up the lawsuit funding company usually adds if the case is sucessful. Only you can decide if lawsuit funding is right for you. However, rather tah gamble your entire future on the outcome of a case in court, lawsuit funding allows you to share that risk of loss with the funding company. And, if you need money of life expenses or emergencies, have no credit history and a bank will not make a loan to you, then consider a lawsuit loan. Remember, a lawsuit loan is not repaid if there is no settlement – banks will not accept this risk.
If you are considering a lawsuit loan and want more information, then contact us, Lance Lawsuit Funding or call us .(201) 425-0743
Lawsuit Loans: Making the System Work For You
People get all kinds of insurance today. Insurance companies sell insurance against fire, theft, accidents, businesses and premise liability to name a few. The idea is that a person can rest easier knowing that if he/she suffers a loss they are covered for it. But there is no such thing as “Lawsuit Insurance,” or is there?
Lawsuit loans are presettlement investments into a plaintiff’s case that is not paid back by the plaintiff unless there is a successful settlement or jury verdict. Although sometimes referred to as lawsuit loans, actually at Lance Lawsuit Funding, it is a “non-recourse” loan. This means that the lawsuit finance company, like Lance Lawsuit Funding, will invest into a plaintiff’s case based solely on the case. There is no credit or employment history check, no monthly bills and no personal guarantee by the plaintiff. Lance Lawsuit Funding simply evaluates the case and advances settlement money to the plaintiff. If there is no settlement then the funding company takes the loss. In this sense, Lance Lawsuit Funding is a true risk taker and invests into the case with the understanding that if there is no settlement, then the investment, like any other investment is loss.
Lawsuit Insurance To Protect Your Family
When you take a lawsuit non-recourse loan from Lance Lawsuit Funding you are locking in your money now. Not all cases go as expected in court and leaving your financial future in the hands of the uncertainties of the juries is not what is best for you and your family. You may have been injured through the negligence of a defendant and have suffered a permanent disability for which you need compensation. However, as any experienced trial lawyer will tell you there is no guarantee that you win your case, or win the amount you expect from a settlement.
So when you lock in a piece of your anticipated future settlement by taking a non-recourse loan now you have guaranteed that you will have that money– especially since you do not repay the investment if there is no settlement. In this sense you have used the non-recourse loan or investment money as insurance that you will get money rather than risking everything. Lawsuit Loan is Settlement Insurance?
Lawsuit Settlement Insurance
Taking a non-recourse loan or pre-settlement advance from Lance Lawsuit Funding is like taking insurance against a loss in your case. You are effectively spreading the risk with the lawsuit funding company who agrees to provide you with part of your anticipated settlement or jury verdict now. It is money in your hands today based on the expectation of a successful jury verdict. But what if you lose your case and you get nothing? Then at least you have the lawsuit advance money from the funding company.
According to the recent study reported in the Journal of Patient Safety the numbers of hospital deaths related to medical error is much higher than previous thought — between 210,000 and 440,000 patients each year who go to the hospital for care suffer some type of preventable harm that contributes to their death. This makes medical errors the third-leading cause of death in America, behind heart disease, which is first, and cancer, which is second. In our recent blog on Medical Malpractice we predicted physician error to be on the raise in the United States.
Even though medical malpractice is on the raise, plaintiffs’ success rate in medical malpractice cases have declined. In fact, if you are a patient who filies a medical malpractice case in the United States, the odds are you will lose your case. Here is a table of plaintiff success rates in tort cases in the United States.
In Medical Malpractice Litigation in State Courts, National Center For State Courts, Vol. 18, No.1, April 2011, the project reported that there has actually been a reduction in filed medical malpractice cases in state courts. Medical Malpractice cases continue to drop as compared to other types of cases filed in state courts. The chart below is from the National Center For State Courts 2005,
Medical Malpractice and Other Personal Injury Trials in State Courts
It is easy to see that plaintiffs win far fewer medical malpractice cases than other types of personal injury cases in state courts. It is also evident that medical malpractice injuries are far more severe than other types of personal injuries. So what accounts for the huge disparity between the alarming rise in preventable medical and hospital errors and the drop in filed medical malpractice lawsuits? There are numerous reasons that range from tort reform to the difficulty in getting a medical expert in the same field as the defendant to testify in court.
As you can see, plaintiffs win in medical malpractice cases just 23% of the time, and other negligence cases about 59% of the time. This is why taking a lawsuit non-recourse loan or investment from a lawsuit loan funding company makes sense- it protects you from the realistic chance of losing your case.
Let Lance Buy The Risk
When Lance Lawsuit Funding invests into your case, we are purchasing the risk associated with your case. We are true risk takers and win only if you when. As the national court statistics show, and as your lawyer has probably explained, there is no guarantee of a successful outcome in your case. When Lance Lawsuit Funding invests into your case through a non-recourse loan we take on some of that risk and pay you money. You will taken some of that risk off your shoulders and placed it on ours.
For more information about getting a presettlement loan, (201) 425-0743 us or visit out website, www.lancelawsuitfunding.com
Tips On Selling Your Annuity or Structured Settlement
Did you know that you can sell all or part of your annuity or structured settlement?
An annuity is an insurance contract that pays you a steady stream of income over a specific lenght of time. Here is how it works: You purchase an annuity, either through an investment advisor or insurance company and then it makes future payments to you. The amount of the annuity and annuity payments to you are set. Usually the size of the payments are detemined by the amount you pay for the annuity and the lenght of time it pays out.
Similarly, a structured settlement is an insurance agreement to provide you with a steady stream of payments over a specific period of time. Often in a structured settlement a personal injury plaintiff may accept an annuity from the defendant’s insurance carrier because it provides fixed settlement rather than going to trial and it provides a stream of cash if you are disabled.
However, sometimes life changes and you want a lump sum of cash. Maybe the purpose and function of your annuity no longer suits you.
Life Changes And So Do Your Needs
Maybe that annuity you purchased as an investment or structured settlement you accepted in your persona injury settlement no longer suit your needs.
- You want to purchase a home,
- Need a new car,
- Pay college tuition,
- pay-off debt
- Pay Medical Bills,
- Start a new business
These are just a few of the reasons why the structured settlement or annuity that you have no longer fits your needs.
There are alternatives for you if you want a lump sum of cash now. We will buy your annuity or structured settlement and give you the lump sum of cash now. What if you need a lump sum of cash now, but also like the steady stream of money that your annuity or structured settlement provides? In that case, ask us about buying part of you annuity. Lance Lawsuit Funding will buy a part of your annuity or structured settlement and you can have both – lump sum of immediate case and keep your annuity. You would only sell part of it.
There are options available to you if you want to sell you annuity or structured settlement for a lump sum of cash today.We can offer you “Tips on Selling Your Structured Settlement,” and annuity that work for you.
Lawsuit Funding: What Is It Really?
There has been much written about capitalist investors and wall street hedge fund rushing into the lawsuit funding industry. Recently, an article published in the New York Times Magazine suggested that thanks to these investors buying shares in other people’s lawsuits that they may be warping the legal system. “Trial By Money,” by Mattathias Schwartz, NY Times Magazine, October 26, 2015.
In his article, Mr. Schwartz mistakenly argues that litigation finance or lawsuit funding, as we know it today, has its roots in the antiquity of ancient Rome when Athenian political clubs or wealthy bankers bought shares of lawsuits. He writes later, in medieval England litigants could hire “champions” to represent them in trials – later compared to prostitutes who’s prevalence hastened to the movement of dispute resolution in the courtroom. During the Middle Ages, he writes, this became know as “Champery.”
Forbes describes lawsuit funding and litigation finance as an investment whose time has come. “Lawsuit Funding Lures Investors, Plaintiffs & Lawyers,” Forbes online, February 20, 2014.
The Economist predicts that lawsuit funding to be a high growth and high return business because investors who pay for lawsuits through litigation funding in exchange for a share of the settlement. “Fat returns for those who help companies takes legal action,” April 6, 2014. In most instances, lawsuit funding arises out of the disparity in power, wealth and access to the legal system – the David & Goliath paradigm if you will. How can lawsuit financing that levels the playing field be compared to prostitution while making no mention of well-funded political action packs and wealthy companies who use shareholder cash to advance their interests?
WHO IS KIDDING WHO?
There is a built in bias to the argument that lawsuit funding and litigation financing warps the legal system or may cause courts to give larger settlements. That is the Goliath story where the powerful and well-funded special interest groups behind those who pollute our environment, sell dangerous products or practice predatory business practices who rip-off the intellectual property of start-up companies, enjoy an advantage over David.
For those who have actually been in the litigation trenches and survived it is well known that the courtroom delays and docket stall is caused endless litigation tactics of the Goliaths in the courtroom. After all, what plaintiff does not want a swift and speedy resolution to their claims so they can move on with business.
Passive Lawsuit Funding Is Not “Champery.”
Lance Lawsuit Funding makes passive investments, unlike the medieval “Champery” described above. Lance Lawsuit Funding, for example, provides plaintiff funding to people with personal injury cases who are already working with lawyers. Like most of the lawsuit funding industry, Lance Lawsuit Funding does not get involved in the litigation of the case. All legal strategy decisions are left to the plaintiff and his/her lawyer. All decisions about expert witnesses, trial strategy and settlement or trials at left totally in the hands of the lawyer and client.
The Non-Recourse Loan and Passive Investment Litigation Financing.
A non-recourse loan is sometimes referred to as case funding. In the lawsuit financing business it means that when a lawsuit funding company advances money to a plaintiff, that he does not have to repay it if there is not settlement. In essence, the plaintiff’s settlement is a contingency that has to occur before the money is repaid. If there is no settlement, then the plaintiff is not obligated to repay the funder.
Now here is the important part. In plaintiff lawsuit funding often the money is not to be used for the trial by the lawyer. It is for the plaintiff’s personal emergent living expenses. This is an important distinction between some forms of litigation finance and lawsuit funding.
Lance Lawsuit Funding, for example, provides money to plaintiffs who already have personal injury lawsuits pending and are working with a lawyer. The money that Lance Lawsuit Funding provided to a plaintiff is to be used for personal living expenses to help them with the financial crisis of their disabilities while waiting for case to be settled. The money is not used for the lawyer or trial expenses.
Lance Lawsuit Funding provides a service for people with personal injury cases who are suffering with disabilities. Often because of a poor credit or employment history they cannot go to banks. Lance Lawsuit Funding, however, bases it funding decisions on the merits of their case – not their credit or employment history.
Lawsuit Funding Bets On the Little Guy.
Lance Lawsuit Funding bets on the little guy – the man or woman who cannot wait months or years for their case to settle. They don’t have to accept an inadequate settlement out of financial desperation. In some cases, Lance Lawsuit Funding has helped clients to buy cars to get to work, hold on to homes or pay bills. Lance Lawsuit Funding is in the business of betting on the little guy – the David.
How Lance Lawsuit Funding Works.
1. A plaintiff who has a pending personal injury case and working with a lawyer will contact a lawsuit finance company, like Lance Lawsuit Funding.
2. They will be asked a little bit about their case.
3. Then, Lance Lawsuit Funding takes it from there. They contact the client’s lawyer to get documents that support the claim. A decision to provide funding can usually be made within 24 hours.
4. The cash advance is non-recourse loan that does not have to be repaid if there is no settlement.