Understanding the Options for Pre-settlement Legal Funding
Personal injury claims and other types of lawsuits can take months or longer to settle. This means that accident victims and their attorneys must wait for a substantial amount of time before they receive any kind of payment. Legal funding can help cover these costs, but who gets paid?
At Triumph Legal Funding, we offer pre-settlement legal funding to attorneys and plaintiffs. Our experienced team will review your case to determine if you are eligible for funding and how much funding you will receive. To learn more about your options or to apply for funding, contact our office at 973-362-3500.
How Is Pre-settlement Funding Dispersed?
Pre-settlement legal funding is not a loan. It is a cash advance against your future settlement. The money that is funded is paid directly to the person who has applied for the funding. Thus, if a plaintiff has applied for and been approved for funding, the money is paid to them. If an attorney has applied for and received funding, the money is paid to the attorney.
The money is repaid through the settlement that is received in the case. Generally, a plaintiff will only be eligible for a certain percentage of their expected recovery in the case. In most cases, a lien is then placed against the future settlement and repaid through the attorney’s trust account.
Does Pre-settlement Funding Go to the Attorney or the Plaintiff?
The funding will be paid to the person or party that applied for the funding. If a plaintiff applied for and received the funding, the money will be paid to them, and it is repaid through their portion of the settlement.
If an attorney obtained the funding, the money is paid to them and repaid through their portion of the settlement. Before securing funding, it is important to understand how the money is repaid and all of the requirements of lending.
Does the Attorney Take Their Fee from the Pre-Settlement Funding?
An attorney will not take their fee from the pre-settlement legal funding. The attorney’s fee comes from the final settlement amount. In most instances, a settlement is paid directly to the attorney’s trust account. The attorney will then take their fees and pay any outstanding liens on the case. Once all fees and liens are paid, the attorney will cut a check to you for the remainder of the settlement.
If your attorney secured pre-settlement legal funding, the money will be repaid through their portion of the recovery. If you secured the funding, the money will be repaid through your portion of the settlement. Regulations vary by state, so it is important to discuss pre-settlement legal funding options with your attorney.
Interested in Securing Legal Funding? Contact Our Office.
Are you in need of securing legal funding? Contact our office at 973-362-3500 to discuss your options with a member of our team. We will help determine whether you are eligible for pre-settlement legal funding. We proudly provide services nationwide. Learn more about how we can help today. Call now to get started.