Settlement Financing – How It Can Help You While Waiting For A Personal Injury Lawsuit Settlement

By Author: Larry Herscu
Total Articles: 6
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Settlement financing is a viable option when you are waiting for a court settlement on your personal injury lawsuit and are finding it hard to arrange for your personal expenses. The defendants may also try to take advantage of your situation and force a smaller settlement. Financing can help you survive just such a scenario.

Accidents are always surprising. Have you ever planned for your car being slammed by another while driving to your office in Toronto? You may be seriously injured, forced to stay home from work for weeks, or worse, even months at stretch. Your source of income may dry up, while your medical and other bills keep accumulating.

This is a very common scenario, and a god way to deal with it is advance planning. You should have an emergency fund to deal with such unforeseen problems, and look into appropriate additional insurance.

However, the reality is, most Canadians do not have such a contingency fund. As a result of daily expenses, it is very difficult to save for a rainy day. While you may be covered for certain medical expenses, what about your day-to-day living expenses, such ...
... as utility bills, kids’ tuition fee and other such expenses? Moreover, the defendant in your claim may try to take advantage of the situation, and force a smaller early settlement. So what can you do if you ever face such issues?

You may be able to borrow from people you know, or from conventional lending sources such as banks. However, for some, that may not be an option. Lenders may not be willing to advance funds to a person who is unemployed, and who may not be able to repay the loan. Most conventional lenders require proof of income and employment.

One potential option you have is settlement financing. There are companies that may be willing to provide you money if they are reasonably sure about the merits of your case. They will usually talk about your claim with your lawyer, and if the conclusion is positive, they will usually be willing to fund. Funding from such companies is non-recourse, which means that if the outcome of the case is not positive, you need not return the money. It is really simple. If the court decides in your favour or you receive settlement funds, you pay back your loan with interest, otherwise you do not.

Settlement financing companies will usually deal with your lawyer, and will help you complete any necessary documentation.. When the settlement is released, the lawyer will pay the loan and interest back to the financing company. Moreover, you likely already have an arrangement with your lawyer to pay their fee only when you win the case. Such arrangements can help relieve the stress you feel when you are already in a tenuous financial position.

Settlement financing companies may permit you to take either a lump sum amount, or request a certain monthly amount to help manage your expenses. They are usually willing to accommodate the plaintiff’s request in this regard.

If you feel that you could benefit from settlement financing, you may discuss it directly with a settlement financing company or with your personal injury lawyer in Toronto or elsewhere in Canada. They will be able to provide you with some useful information, and this type of support can help you though some and even financial messes.

The author of this article is associated with Easy Legal Finance Inc. that provides settlement financing. Financing from Easy Legal Finance can enable plaintiffs to meet their immediate financial needs and help increase their chances for a successful settlement.