Post-settlement funding for attorneys.
Post-settlement funding for plaintiffs and attorneys
Achieving settlement in a personal injury lawsuit is seen as a big win by plaintiffs. Most attorneys know that while settlement is a milestone, it is by no means the end of the road. Settlement payments sometimes take month or years to reach the plaintiff due to processing issues, liquidity problems, appeals or even the terms of the settlement. In the meantime, the attorney must focus on other cases and managing the day to day expenses of their firms. Plaintiffs have expenses as well including rent or mortgages, utilities and other day to day living expenses that they might not be able to pay for.
How Post-Settlement Funding Can Help Attorneys and their Clients
Post-settlement funding can help attorneys and their clients get the liquidity they need now before the settlement check arrives. This allows clients to catch up on past due bills as well as pay for any living expenses necessary and attorneys to pay for the cost of new contingency cases that have come in as well as payroll and other business costs.
What is Post Settlement Funding?
Post-settlement funding is a way of leveraging the settlement award and fees that a client or attorney is entitled to by using it to secure a up front cash advance that is paid back when the check arrives. This is done by securing the funds with a third party lien on the settlement which the attorney will then use to pay back the principal and agreed upon rate of return when the funds arrive from the defendant. This type of funding is utilized by both attorneys and plaintiffs and is tailored towards each individual case and the estimated time of arrival of the settlement proceeds.
Who Can Use Post-Settlement Funding?P
Post-settlement funding is utilized by many different types of plaintiffs and attorneys. Below are a few of the most recent types of cases commonly qualified for post-settlement funding:
- Motor Vehicle Accidents
- Mass Torts
- Medical Malpractice
- Employment Discrimination
- Wrongful Death
- Wrongful Termination
- Commercial Litigation
- Shareholder and Securities Litigation or Arbitration
- Patent Litigation
- Breach of Contract
How Post-Settlement Funding Works
The post settlement funding process is extremely simple and normally finalized inside of one business day. Once a funding provider reviews your case documents, including the fully executed settlement agreement, they will generate a contract for the client and attorney to sign. Once signed, the funding company will execute that lien and distribute the funds by bank wire or certified check. Normally funding companies will release up to 50% of the award to the plaintiff or 50% of the fee to the attorney.
How Post-Settlement Funding Helps
Post-settlement funding acts as a lifeline for plaintiffs and attorneys alike, giving them access to liquidity that they otherwise could not get from a traditional financial institution. Giving plaintiffs and attorneys early access to their future receivables empowers them to make sure they are making sound financial and business decisions and not handcuffed by a long processing time of a settlement award.