Why You Should Consider Settlement Funding to Help Pay Legal Expenses
One of the most common reasons why someone ends up in court is to defend themselves against a lawsuit. Whether you’re the one being sued or you’re the one filing the lawsuit, the cost of litigation can quickly add up. Depending on the severity of the case and the amount of time you have to spend in court, you may end up spending hundreds or even thousands of dollars on your legal defense. This can put a serious financial burden on you and your family. Fortunately, there are several ways that you can help reduce the cost of your legal defense. One of the best ways that you can do this is by seeking funding for your legal defense through a settlement. Read on to learn more about why you should consider settlement funding to help pay legal expenses.
What is a Settlement?
A settlement is the negotiated and agreed-upon conclusion of a lawsuit between the parties involved. While both sides may be unhappy with the outcome of the lawsuit, they agree to let bygones be bygones and move on with their lives. A settlement may or may not involve the payment of money or assets by one or both parties. If a settlement does involve the payment of money, it is usually in the form of an agreed-upon amount that is paid by one party or the other to the courtappointed special master or arbitrator who resolves the case.
Why You Should Consider Settlement Funding to Help Pay Legal Expenses
Settlements offer several advantages for both parties. The defendant gets the opportunity to put the lawsuit behind them and move on with their life. The plaintiff, meanwhile, gets an amount of money or assets that they can use to pay their bills and resolve their financial issues. Both of you come out better after a settlement.
What is Settlement Funding?
Settlement funding is a way for defendants to put their own money toward the cost of their defense. Rather than an insurance company or other third party footing the bill for your legal defense, you use the money that you have saved to pay your own legal fees. There are a variety of funding sources that you can choose from when you apply for settlement funding. Each one of these funding sources has its own rules and guidelines that you need to follow to qualify for funding and to make sure that the money that you receive is actually legitimate.
How to Apply for Settlement Funding
The first step in any settlement funding process is to apply for funds. Settlement funders will often require a significant amount of documentation before approving an applicant’s request—which could include personal financial statements, W-2 forms from the past three years, Federal tax returns from the same time period, and possibly even credit reports.
This ensures that only those who are most likely able to repay their loans receive money which often ranges anywhere between $5-$500 thousand dollars with terms set out at 3-12 months.
How Much Does Settlement Funding Cost?
The amount that you are approved for will vary from company to company, but on average, you can expect to receive $5,000-$10,000 for your legal defense. Keep in mind that this is just the average amount. Your own personal circumstances will affect the amount that you are approved for.
Is Settlement Funding Right for You?
Settlement funding is a great option for people who have a lot of unmet expenses. This would include things like unpaid bills, credit card debt, and even your mortgage or home equity loan. If you have a significant amount of unmet expenses, then this could be a good source of funding for you. Keep in mind, however, that it may take longer to get approved for this funding source compared to other applicants.
Final Words
The cost of litigation can quickly add up. Depending on the severity of the case and the amount of time you have to spend in court, you may end up spending hundreds or even thousands of dollars on your legal defense. This can put a serious financial burden on you and your family. Fortunately, there are several ways that you can help reduce the cost of your legal defense. One of the best ways that you can do this is by seeking funding for your legal defense through a settlement.