Clients who are injured in an accident through no fault of their own are often in a vulnerable position. For clients who live paycheck to paycheck, being unable to work for even a short amount of time can mean financial ruin. They are suddenly pressed into making immediate decisions to assure that they are able to meet their financial obligations.
Finding Cash. As a personal injury law firm, clients turn to you for advice on how to best obtain funds while waiting for settlement. The first step is to estimate the client’s monthly expenses and the approximate length of time before a settlement is reached. This will give clients a rough idea of how much money they need and for how long. Where will this money come from? Ask the client about:
- Funds from savings accounts or other investments
- Eligibility for unemployment or disability insurance coverage
- Credit card advances
- Borrowing from friends or relatives
If none of the options above are a possibility or are insufficient, plaintiff funding is another option for your clients to acquire funds for living expenses. Clients should be made aware that even the most transparent and straightforward plaintiff funding arrangements involve some costs. The reason is that plaintiff funding companies take all the risk and won’t be reimbursed if the plaintiff loses his or her case.
If plaintiff funding is the most viable alternative, you can help clients by suggesting a well-respected funding company and walk them through the application. Some companies use simple, online applications with funds available within 24 hours or less. The most reputable firms will layout the terms and costs in an easy-to-understand manner so there will be no surprises or confusion during the course of the case and upon case completion.