Settlement
Funding is basically new to India and yet to catch up. The
below details are provided only for information.
Settlement
funding is the money made available to a plaintiff by a
settlement funding company or attorneys fighting the case.
Settlement funding may be a structured settlement or lawsuit
settlement or life settlement. A structured settlement is
the payment of money for a personal injury claim where all
or part of the settlement calls for future periodic payments.
Lawsuit settlements are settlements based on compensation
cases. Life settlements are based on Life Insurance policies.
Lawsuit
settlement funding is the practical alternative when a person
loses his job unlawfully or falls victim to medical malpractice
and does not have sufficient funds to go to court and fight
for his rights. In lawsuit settlement funding, a cash advance
company or pre-lawsuit funding company enables the individual
to carry on with routine life while pursuing the lawsuit.
The company will study the case, contact a lawyer and assume
the amount of compensation expected. On the basis of this
they provide the applicant with an advance payment. This
is a non-resource loan and the person is expected to pay
it back only if he wins the case.Lawsuit settlement funding
is the practical alternative when a person loses his job
unlawfully or falls victim to medical malpractice and does
not have sufficient funds to go to court and fight for his
rights. In lawsuit settlement funding, a cash advance company
or pre-lawsuit funding company enables the individual to
carry on with routine life while pursuing the lawsuit. The
company will study the case, contact a lawyer and assume
the amount of compensation expected. On the basis of this
they provide the applicant with an advance payment. This
is a non-resource loan and the person is expected to pay
it back only if he wins the case.
Lawsuit
settlement funding may be pre-settlement funding or post-settlement
funding. Usually persons are not directly funded by their
lawyers, because State Bar Associations recognize that when
a lawyer becomes a creditor or client, a conflict of interest
is created that may interfere with the attorney-client relationship.
