COVID 19: Spike Expected In Funding Requests
The coronavirus is affecting every aspect of our society. Especially vulnerable are those clients who are struggling financially while waiting for their personal injury case to settle. If the coronavirus crisis continues even for a few more weeks, it will compound the financial hardship.
Strict governmental restrictions, such as Los Angeles Mayor Eric Garcetti’s directive on Sunday, March 15 to close gyms, limit social gatherings, and to ban dine-in meals, could mean working clients will suddenly be out of a job as their employers are forced to close their doors. With an anticipated increase in lay-offs around the bend, clients may be facing unprecedented financial hardship.
If your clients have been affected by the crisis, they may have an important option available to them—legal funding.
The Legal Funding Process. If your client’s case is strong, legal funding (also known as “litigation funding” and “pre-settlement financing”) may be the answer. As the plaintiff’s attorney, you work with a legal funding company to advance settlement funds based on the strength of the case, the estimated settlement or judgement amount and the client’s monetary needs.
The process is simple. Once clients submit an application, they receive a lump sum or monthly payments by wire transfer, Western Union, or FedEx (usually within 24 hours). The advanced sum is repaid to the legal funding company with interest once the case settles. Funds do not need to be repaid if the client fails to reach a settlement or loses in court.
Expect the need for legal funding to increase as the coronavirus lingers. Workers in hospitality, recreational, education, transportation and entertainment are just some of those who are being affected by coronavirus shutdowns.
“No one knows how long this crisis will last. Plaintiff attorneys have the opportunity to reduce the financial stress of their clients to ensure clients can stay financially solvent to not only fight their cases, but to survive,” says Ramtin Ghaneeian, Rockpoint Legal Funding President. “To help relieve the economic uncertainty, legal funding through a reputable, ethical legal funding company can mean all the difference.”
Rockpoint Legal Funding works closely with plaintiff attorneys to ensure that an advance is suitable for their injured client. If you have settlement funding questions, visit Rockpoint Legal Funding or call 855-582-9200.