Learn about personal injury lawsuits, lawsuit funding regulations, and where to find help with money.
Lawsuit Loan Industry's Regulations
Consumer legal funding (also known as lawsuit loans) is not regulated by the federal government and is not regulated in most states because it does not come under the category of bank loans or other financial institutions that provide loans.
Although people often refer to money advanced from a personal injury as a “loan” or lawsuit “loan,” this is incorrect. Legal funding is actually an investment made on a portion of your potential insurance proceeds and is essentially not a loan, as it does not require repayment in the event of a lost case.
Depending on the state’s legal system, liability is an important consideration in personal injury claims. In a fault-based system, you retain the right to seek compensation from the parties responsible for your injuries. Conversely, in a no-fault-based system, your PIP insurance covers the damages regardless of who is at fault. Joint liability can allow accident loans in some states, but it is generally not feasible in at-fault states.
Evaluating Damages and Compensation Limits
Your damages act as a ceiling for the compensation you can receive through a settlement or lawsuit award. In certain states, there are limits on the amount of noneconomic damages that can be awarded in a personal injury lawsuit, which can affect the total compensation you receive.
At Baker Street Funding, we understand these factors and will collaborate with you and your personal injury attorney to assess the potential compensation you are eligible for when evaluating your application.
Assessing Contributory Negligence and Its Impact
Contributory negligence refers to the allocation of responsibility for injuries sustained. In states that follow a pure contributory negligence system, people who share fault may be unable to obtain compensation through the court system. However, in states that adhere to pure comparative negligence or modified comparative negligence system, compensation may be diminished based on the proportion of fault.
Our skilled team will thoroughly examine the particulars of your case to establish the funding amount in compliance with the shared fault laws prevailing in your state.
Understanding the Statute of Limitations and Taking Timely Action
It’s crucial to be aware of the statute of limitations, which is the limited time frame within which you can pursue a civil claim. If you don’t file your lawsuit before the statute of limitations expires, you will no longer have the opportunity to present your case in court and recover compensation. To avoid missing out on justice, start the legal process as soon as possible.
Alternatives to Lawsuit Loans
When essential expenses are too much to handle, it makes it impossible to keep your head above water and continue with your legal battle. While you may be entitled to compensation that can provide you with funds to cover your medical bills, lost wages, daily costs and more, it could take some time to receive your money. In the meantime, it’s important that you have access to cash in order to pay for daily expenses like food and rent.
Your emotional health is just as important as your financial stability and legal fight, and Baker Street Legal Funding is here to lend a helping hand. We have compiled some programs that can help you for free in your time in need if you are not ready to take out a loan on your case yet: