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June 2016

How Lawsuit Funding Works

Each year millions of people are injured in car accidents, at work and during medical procedures.  These injuries put people out of work and create a financial burden that is not lifted until their case settles.  Surveys show that 62% of Americans have less than $1000 in savings.  Being injured and out of work will quickly dwindle many people’s savings and put pressure on them to settle for less than their case is worth.  The solution to this problem is lawsuit funding. 
 
Lawsuit funding vs a Loan
Lawsuit funding is different than a loan.  A lawsuit is an illiquid (difficult to turn into cash) asset with an uncertain outcome, which can be liquidated (turned into cash) by selling off a portion of the case to a third party.  Lawsuit funding is based upon the facts of the case whereas a loan is based upon the credit worthiness of the borrower.  Lawsuit funding is only paid back if the case settles whereas a loan requires monthly payments from the borrower. 
 
Why Take Lawsuit Funding?
Many people don’t have the financial assets to withstand an emergency like a personal injury lawsuit.  Victims may need cash to pay for repairs to their car from an accident, a new or rental car to get back to work, replace income lost from being out of work due to an accident, medical bills, surgery, children’s education and childcare. 
 
Lawsuit funding is less expensive than other alternative forms of borrowing like payday loans.  Lawsuit funding also doesn’t require monthly payments or credit checks, because it is based upon the value of the case not the credit worthiness of the borrower. 
 

How to Know If you have a Good Settlement Offer

Over 95% of cases settle out of court and don’t go to trial.  The reason most cases settle outside of court is that the cost of litigation becomes greater than the economic benefit of fighting the case.  Many cases settle for a different amount than they should.  Plaintiffs may settle a case for a lot less than it is worth, while defendants may end up settling a case for a lot more than it is worth.  As a plaintiff how do you know if you have a good settlement offer?
 
There is a cliché in law that says “a good settlement is where both sides walk away unhappy.”  This makes sense, but as a plaintiff you want to be as happy as possible and receive the best settlement offer you can get.  Many factors determine how much your case is worth and whether the defense is willing to offer you a just amount. 
 
A good way to get an idea if you have a good settlement offer is to ask your attorney what he or she thinks is fair.  Although each case is different, they deal with cases similar to yours on a daily basis and know what a normal settlement looks like.  If you want to do a back of the envelope calculation yourself, here are the factors to consider when valuing your case. 
 

Jobs with the Highest Number of Workers Comp Claims

Heavy & Tractor-Trailer Truck Drivers
Truck drivers have the highest incidence rate with over 55,000 workers injured in 2014.  Truck drivers spend a lot of time on the road, which makes them prone to motor vehicle accidents.  Truck drivers often help unload their deliveries, lifting heavy boxes, using forklifts, and bending over, which puts them at
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