Funding Pre Settlement
2 Myths About Funding Pre Settlement
Are you injured and deserve a fair settlement but do not have enough cash to cover your bills? And you heard that funding pre settlement might not be a good option due to some reasons that sound sensible? Those reasons might turn out to be myths and misconceptions, not facts.
To help you distinguish facts from fictions, here are 2 common myths about legal funding:
1)You will have to repay your funding even if you lose your lawsuit. Some people are taunted with the ‘fact’ that the money will have to be repaid when they did not win the case. So, some are discouraged about the ‘funding pre settlement’ idea. If you are one of those who would prefer not to utilize this opportunity because you are worried that you will be unable to repay the money, If you loose your lawsuit you do not have to repay the funding pre settlement.
The fact is, it would be wrong and inaccurate to categorize legal funding as a loan. Some people are misinformed into thinking that it is a payday loan! As you may already know, payday loans have incredibly high-interest rates. Why would a sane person take a payday loan to finance a lawsuit that they might not win?! It is obvious that it does not make complete sense, right? So, is it something else? Of course, it is.
In fact, legal funding (funding pre settlement) is not a loan. It is important to emphasize this. So, what is it then? It is a non-recourse cash advance. You would be right to say that it is ‘free money’ that could help you win your lawsuit. And if you lose your lawsuit, you will not repay the amount in part or in full. Who would want to refuse that?
However, you are required by law to repay the amount in full if you win the lawsuit and are awarded a settlement. The loan amount is often small compared to the settlement; you will easily be able to pay it back from the proceeds if you win. In fact, you will be grateful that you received the money to help you win.
2) If you get legal funding, there will be pressure for you to take a settlement. It is sensible that some people think that funding companies use it as a tactic to pressure plaintiffs into accepting a lower settlement offer that they would be unable to refuse. This is how those companies get their money back, right? Wrong! You should not worry about this either; nobody will pressure you to do what you do not want to do because of funding pre settlement. Apparently, this is another myth that you should not take seriously.
Do you know the reason why you get legal funding? If you do not, it is because you may be in desperate need of cash to pay bills. And that is where funding pre settlement comes in: to get you the cash to pay bills. It is as simple as that: no strings attached. So, funding companies are not working with the defendant to make sure that you get a small amount of money! They want what is in your best interest and are willing to give you cash support when you need it.
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