Personal Injury Lawsuit Funding
Filing a personal injury lawsuit may result in some compensation to make up for any injuries you suffered. However, the whole process of a lawsuit can take anywhere from a few months to a few years. There are several options to consider that may help you get through in the meantime.
Money to Live On
When filing for a personal injury lawsuit, the main goal is to get money from the defendant or his/her insurance company to compensate for the medical expenses, lost wages, damages, or any pain and suffering you had to go through. Individuals who have suffered injuries that have prevented them from working, will need money to pay the bills in the meantime. In many states, a lawyer is not allowed to lend their client money. This type of arrangement has the ability to create conflict of interest between the lawyer and the client.
Fees and Expenses
Most types of lawsuits, including personal injury lawsuits, can become quite expensive. More so if the case goes to trial. A majority of personal injury lawyers take a contingency fee, meaning that they are only paid if the case is successful. The client will not need to pay all the money up front. If the plaintiff receives the money through trial or settlement, the lawyer will deduct the percentage before writing the check. The client must also repay his/her attorney for any money that was used on expert witnesses, medical records or legal costs.
Cash Advances and Other Options
Several, but not all financing companies, will offer the plaintiff a cash advance if they believe the case will be a success. If the case is lost, or there is no settlement, the money does not have to be repaid. If the case is won and you are compensated, you must pay the agreed-upon fee as well as the money borrowed from the financing company. These fees can range up to 15 percent each month, depending on the company.
If an individual has good credit, they may be able to use existing credit cards or take out a personal loan. It may be beneficial to look towards any friends or family that may be able to help you financially. If your medical bills and expenses are high, you may be able to speak to your doctor, hospital or provider to see if they can lower the payment or offer a payment plan. Depending on the severity of your situation, you may eligible for unemployment, disability, or workers’ compensation benefits that can most definitely help you pay any bills or expenses.