A Must: Simple & Transparent Pre-Settlement Funding Agreements
Your client has just been injured in a car accident involving a DUI driver. To add to the trauma caused by the accident, your client now must go through an unfamiliar and confusing legal process to obtain financial compensation.
One question that often arises in these cases is, How can plaintiffs pay daily living expenses if they are unable to work because of their injury? In some situations, plaintiffs have savings to draw from. Other times, friends and family can help. If these sources are not an option, pre-settlement funding (also called litigation funding) can be arranged so money from the eventual case settlement can be advanced to the plaintiff.
Depending on the pre-settlement company, funding can be arranged in less than 24 hours. The plaintiff fills out an online application and signs a funding agreement (also online).
Not every pre-settlement funding agreement is the same. At Rockpoint Legal Funding, our agreements include:
–Payoff table and calendar with ALL fees included
–No interest or hidden fees
–No calculations necessary
–Verbiage indicating that plaintiff funds do not need to be repaid if the plaintiff fails to reach a settlement or loses in court
When it comes to fees, look for a funding company using a transparent pricing model that will help your clients understand all the costs involved upfront so they can budget effectively.
Even the simplest of cases produces a host of paperwork for your client to review. A pre-settlement funding agreement should not be another confusing document that your client has to decipher. Instead, it must be written in easy-to-understand language with all the terms clearly spelled out. If prepared properly, a pre-settlement funding agreement and subsequent advance will help give plaintiffs peace of mind as their case winds its way through the legal system.