Pre-settlement litigation funding is a non-recourse
cash advance, provided to an injured person in return for a promise
to repay the advance after you win your lawsuit. The advance covers
medical and health care related costs, expert witness, research, and
attorney fees. Ideally, the suit should be at least 4 months old with
the likelihood that it will settle in no more than 18 months.
The pre-settlement funding source would fund the
client approximately 10-20% of the expected judgment in return for a
lien against the entire award remaining. This lien follows any lien
placed on the case for attorney or medical fees. By keeping the funded
amount small, and by getting involved after a certain amount of time
has passed, the actual cost to the client is very small relative to
their increased gain.
What is the Risk to My Client?
NONE! If the client loses the case, the funding
source assumes the loss. This is a non-recourse transaction. If the
client doesn't receive a settlement they owe NOTHING!