Win or lose, lawsuits are expensive and time consuming. Not to mention, plaintiffs face high expenses outside of the courtroom in medical bills and living costs. The good news is that the best lawsuit financing company like Pre-settlement funding in NJ can help tremendously. But, before you apply for financing, you should first check out our list of the top 6 things to know about lawsuit financing.
Is Lawsuit Financing Good?
It is not uncommon for plaintiffs to initially be sceptical of legal consumer financing. Often, your concern about lawsuit funding stems from not knowing how it works. However, knowledge is power, and that is why we wrote this guide on legal financing .
Lawsuit financing if done correctly is helpful, ethical and safe. It plays an essential role in today’s legal system by providing plaintiffs with cash so they can:
- Pay living expenses for themselves and their family.
- Avoid going into debt for unexpected medical expenses and lost work income.
- Pay bills or debts.
- Buy items that you suddenly need because of your accident.
- Continue the fight for justice and get the settlement money you deserve.
This last point is a game changer because pre-settlement funding in NJ can help injured and damaged plaintiffs survive financially during their case. It can give them the financial strength they need so they don’t feel forced to prematurely settle their cases for low and unfair amounts.
Best Lawsuit Financing Company:
- Will respond to inquiries from claimants promptly.
- You will have easy-to-understand contract terms.
- You will not charge application fees in advance.
- It will offer competitive and reasonable financing rates.
- It will have a non-recourse financing policy in non-loan states.
- You will have a solid reputation.
1 – Quick legal financing
All invoices have due dates. Lawsuits and courts have deadlines. When you’re in financial difficulty, you can’t afford to work with consumer litigation finance companies that don’t care about you and are willing to let you wait for answers and results.
First, you want a claims financier who will answer your phone 24/7 and start working right away to get you the cash you need within 24 hours of approval. Because they understand that money is needed and that time is of the essence.
2 – Easy to understand legal financing agreement terms
Good companies that fund personal injury claims do not expect you to read and sign contracts full of legal jargon or fine print. They should:
- Explain the terms of the contract in easy-to-understand language
- Be honest about the kinds of cases they fund and the ones they don’t
- Allow you to review the entire contract with your attorney before signing
- Clearly show if they include fees and exactly what those fees are
- All of this ensures that you know what you agree to and choose a company whose terms are fair and honest.
3 – No application fees
When you’re looking to fund a lawsuit, you need money for the essentials, not because you’re looking to waste it. The right pre-settlement financing companies understand that and won’t add to your financial burden by charging unnecessary fees.
4 – Competitive financing rates
Different pre-settlement financing companies offer different rates. We strongly recommend that you ask companies that fund lawsuits about their rates. You can use an online calculator to check your calculations.
5 – Non-recourse financing policy
If you pay your attorney on a contingency fee basis, you do not pay your attorney if you lose your case. In many states like New Jersey, a non-recourse finance policy is the legal consumer finance company’s equivalent of a contingency payment plan.
Lawsuit financing can be your ultimate protection plan during a lawsuit. That’s why it’s critical that you only get help from a company with a non-recourse financing policy. (In states where they can legally offer it.).
6 – Reputation
Finally, look for a funder with a solid reputation. Stay away from lawsuit funders who seem to have decent terms but have a bad reputation in the industry.
Good finance companies like Pre-settlement funding in NJ will have clearly stated information and values. They will be friendly and easy to work with for both you and your attorney.