Archive for March, 2011

3 Common Myths About Lawsuit Funding

Tuesday, March 15th, 2011

Whether you have experienced a situation in the past where a client has considered litigation funding for their ongoing lawsuit, or are currently researching options for a client in need, the process can be somewhat confusing.

To help you navigate this process, we have identified and responded to several common myths about lawsuit financing in this post. If your questions are more complex, or you would like to speak with a representative to gather additional information, please contact us today.

Myth 1: Legal Finance is Only Available in Large, Lump-Sum Payments

Fact: While many lawsuit finance companies only offer lump-sum payments, they may end up giving more money than a client actually needs to cover emergency expenses and this can end up costing your client higher fees at the end of the case. Others including Pre-Settlement Finance offer multiple options to meet your clients’ needs.

Clients can choose from up-front lump-sum payments or smaller monthly installments which are dispersed over time. Depending on the situation, one or the other may be more cost-effective and better suited meet the clients’ needs.

Myth 2: The Money Must Be Repaid, Even if the Client Loses

Fact: While we can’t speak for others in our industry, lawsuit loans only have to be repaid if the client is successful in their settlement. This is a non-course funding contingent on the outcome of the case. It is that simple.

Myth 3: Lawsuit Funding is the Same as a Bank Loan

Fact: Although these financing plans are sometimes referred to by clients as “lawsuit cash advances” or “lawsuit loans”, these types of financing plans are not loans or cash advances. There is no absolute obligation for your client to pay us back, accept if their lawsuit resolves successfully. As noted above, if the client does not win their case, no money will have to be repaid to our company.

Helping Your Clients Find the Best Financing Option

Tuesday, March 15th, 2011

Helping client with lawsuit fundingAs an attorney, you may have had clients reach out to you looking for help with paying bills while their case moves through the settlement process. If you have found yourself in this situation, having a clear understanding of the pre-settlement process will help your clients choose a funding that is right for them.

Here is a description of the most common sources of funding:

Lump Sum Pre-Settlement Financing

This is the most common form of funding for cases in the pre-settlement phase.
Initially, the case file is reviewed and a funding range is determined.  Then an assessment of the clients needs is considered  and a flat lump-sum payment is made to the client.
This money can be used for any needs the client experiences, including the payment of medical bills, household expenses, food, and debt repayment.
As clients may have postponed paying bills during their case because of their inability to work, this is often the best source of money to prevent eviction, foreclosure.
This type of funding is only is paid back if your clients’ case is successful as it is a non-recourse funding contingent on the outcome of the case.  Since payment is due at the resolution of the case, there are no additional monthly bills for the client to worry about.

Pre-Settlement Installment Funding

As with Lump Sum advances, this option is also based on an initial assessment of the case and the client’s needs.  The funding can be used to alleviate financial pressures the client may be experiencing.
Installment financing is often a lower-cost alternative to lump sum payments, as the funds are disbursed in smaller increments over a specified period of time.
This is a good alternative for clients who are experiencing trouble covering monthly household expenses, such as mortgage or rent payments, groceries, car payments, fuel, and similar items; but who are not overwhelmed by a large debt or long overdue bills.

Traditional Borrowing Sources

Traditional sources, such as borrowing from family and friends, banks, credit cards, and home equity loans are often the first options many people look to when in need of cash during a pending lawsuit.
While in some situations these may be the most beneficial sources, the drawback to all of these is that the cash becomes tied to another personal debt, and must be paid back regardless of whether the client wins or loses their case.  Also, borrowers will often need assets to be used as collateral to obtain a traditional loan.
If you have questions regarding a specific case or situation, please contact us for additional information or to begin an application for your client.

Coupons: The Great Money-Saving Strategy

Thursday, March 10th, 2011

If you’re trying to find ways to reduce household expenses while waiting for your lawsuit settlement to come to a conclusion, you may be looking for opportunities to cut back on your grocery bills.

To cut costs on those items you just can’t live without, like groceries, toiletries, and other necessities, we’ve put together a list of some of the best informational sources to help you reduce, reuse, and save some green!

Coupons

If you’re ready to see your grocery bill cut down to almost nothing, and your stockpile of groceries and toiletries multiply at the same time, extreme couponing is for you. We’re not talking about saving $0.25 when you buy 3 of something you didn’t even need in the first place, here. The new strategy of ‘extreme couponing’ is to use all sources available (newspapers, internet, and store sales) to maximize your savings, and many times even get needed items for free!

There are several websites that will help you learn how to do this, but one of the best we’ve found is The Krazy Coupon Lady. There is an entire category dedicated to beginners, to help you learn how to start working with coupons for maximum savings.

Online Savings

If you need to make a larger purchase, or one outside the scope of what you can find on coupon sites and in newspaper listings, it’s time to check out the vast array of websites dedicated to helping you save money. For best results, be sure to check these sites before making any purchase, whether in-store or online.

  • Restaurants.com – substantial savings on gift certificates to use in restaurants throughout the country. Be sure to look here before planning your next night out.
  • Groupon.com & LivingSocial.com – daily deals on services and products in your neighborhood. Simply register your email address, and you’ll get deals delivered to your inbox for merchandise and services in your area.
  • RetailMeNot.com – this site is a compilation of promo codes and special offers on thousands of products and services throughout the country. Before making a big purchase, be sure to look for special offers here.
  • Ebay.com & Craigslist.com – unbelievable selections of new and used items from individuals and retailers throughout the world.
  • Promo Codes – last but not least, if you are set on a particular product, service, or retailer, go to Google.com and type in ‘X brand/company/service promo codes’ to see if any offers are available online that you can use.

If you do your homework and change the way you shop, you’ll be able to minimize your monthly and household expenses and increase your savings immediately.