Cash for Settlement

Cash for Structured Settlement Payments

26 05 2010 Comments Off on Cash for Structured Settlement Payments

When the defendant and his lawyers come to a decision that the lawsuit case filed against the defendant is strong, most of the time, they decide to offer cash for settlement to the claimant in structured payout schedule. However, if the claimant is not amenable to periodic payments, he may opt to apply for cash for structured settlement payment.

A pre settlement litigation funding falls under “non-recourse” loans, since the claimant will not be responsible to pay the advance cash awarded to him in case he is unsuccessful in the lawsuit. However, he may be responsible to recompense a percentage of the amount in case the settlement asked for is smaller than deemed necessary.

Fees and Charges

Because non-recourse funding can be very risky, more often than not, the fees and charges associated when claimants sell structured insurance settlement are considerably high. Therefore, when planning to apply for pre settlement money, it’s crucial to make certain that one thinks and assesses carefully the various legal, ethical, as well as practical issues that come with it.

Cashing Out Process

This is what actually takes place. The claimant calls the financing company that provides pre-settlement litigation funding under the administration of his lawyer. A finance officer from the financial company will call the lawyer and will inquire about certain information regarding the lawsuit. From the details provided, the company will bring forth an estimated amount of a potential verdict or settlement money.

The financial firm then offers the claimant with settlement loans based on the estimates. The fees can be recompensed monthly as a loan, or can get as flat as a tire. Once the case is settled or when the defendant disburses money after losing in court, the loan and associated charges are paid to the loan provider.

The plaintiff is free from paying back the structured settlement payment cash if the lawsuit is unsuccessful – this is one of the best features of getting settlement litigation funding. If the entire amount of the settlement is less than what is expected, the claimant may be required to pay a percentage of the amount but not more than what he had taken. And due to the risk and for other lawful purposes, advance cash settlement is not classified as loan, despite calling it as lawsuit loan by others.

Final Note

For the reason that litigation proceedings can go on for a very long time to get resolved, which may take even several years for a resolution to be made, the lawsuit settlement cash can be beneficial to an injured person who is incapable of going to work and making money due to his circumstances. It is not recommended to borrow money from the lawyer since it may result to conflict of interest between winning the case by presenting the facts in court and getting the money back from the claimant.

The claimant will process the documents while the provider of cash for structured settlement payment will inform the claimant about the transfer of settlement. The financial company will receive the annuity while the claimant gets the lump sum that is less than the total amount of what the claimant should have received.

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