A common reason why most people secure lawsuit funding is to prevent early settlement. When an insurance company decides to offer an early settlement against a pending lawsuit it's oftentimes much lower than fair compensation. What most plaintiffs' need to know is that insurance companies are in business to make a profit. This means to bring in more money and pay out less. Plaintiffs oftentimes take early settlements because they are not in the financial position to wait for the true value of their claim. Many plaintiffs will settle early fully understanding that the amount offered is much less than the amount owed.
Over the last several years insurance companies have made record breaking profits because they understand people are in need of money now more than ever. They have figured out that plaintiffs will accept early settlements because they need money to pay for living expenses, credit card debt and mortgage or rent payments. They will intentionally drag out a lawsuit in hopes of early settlements. Insurance companies are represented by some of the toughest defense attorneys whose jobs are to extend out a claim in hopes the victim will settle for less money.
Several years ago litigation financing was established to protect consumers from “fail play.” Litigation financing gives the plaintiff the financial stop gap while waiting for a fair settlement to be reached. While most people are unaware they can secure lawsuit funding to prevent early settlements, many do take advantage of securing advances against their claim. As lawsuit funding becomes more established as a viable option and plaintiffs begin to learn they can secure non recourse lawsuit loans against their claim, insurance companies will be forced to begin providing fair settlement offers up front.
When a plaintiff decides to secure a lawsuit loan to prevent early settlements the loan is non recourse. Non recourse funding is a loan that is paid back on a contingency fee basis meaning if you lose the case you do not have to pay back the lender. This takes the pressure off the plaintiff and allows the attorney more time to fight for fair compensation for their client.
Early settlement offers are typically not their “best offer”. Even if an insurance company makes an offer your attorney will advise you of the offer and can make a counter offer based upon your recommendation. If the case can't be settled more than likely it will go to court and be determined in front of a judge.
If you have been offered an early settlement and not yet ready to settle you are not alone. There are thousands of plaintiffs who elect not to accept early settlements because they are much too low. At LawLeaf we understand the litigation process and we do our best getting you into the right settlement loan immediately. We understand that in order for our clients not to settle their case too early, its imperative they get funding immediately. LawLeaf is extremely effective in securing our clients lawsuit funding at competitive rates in a timely manner. If you are currently searching a lawsuit advance, begin by applying online with LawLeaf today.
We will do our best in securing funding for your case, so you are not put into the position of having to settle your case too early.
LawLeaf provide litigation financing services for the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming and the District of Columbia D.C.