In most cases of personal injury and auto accident lawsuit funding, the plaintiff who is in desperate need of money ends up using all of the money in a few months’ time, leaving him empty handed again before even having collected the cash settlement for his lawsuit. To avoid such instances, a scheduled payment and legal funding program is offered to the plaintiffs. This program ensures that the person applying for lawsuit funding receives money in the form of monthly installments. These installments will be provided to the plaintiff for a fixed period of time until his lawsuit is resolved and he receives the money of the settlement.
How Scheduled Payment and Legal Funding Work?
The scheduled payment and legal funding program is not too different from the usual lawsuit funding programs. You have to apply for this type of funding in the same manner and provide all the documents that you would for a lawsuit funding application. The company providing you the funding is going to review your application and decide on an amount of money that would be provided to you as a pre-settlement fund. Then the company is going to decide the amount of this fund that would be provided to you in the form of a monthly installment after consulting with you and your attorney.
Who Should Apply for Scheduled Payment and Legal Funding?
Scheduled payment and legal funding programs are helpful for all auto accident or personal injury victims who are waiting for their compensation reward. However, people who have lost a regular source of income as a result of the accident and are in dire need of money to pay off their monthly bills would find this program much suitable for them. Since it is a personalized funding program, it is going to take into account the individual needs of the victim and would provide the exact amount of money that he requires on a monthly basis.
Difference between Lawsuit Funding and Scheduled Payment
The only difference between lawsuit funding and scheduled payment is that in lawsuit funding, you are provided a lump sum of money as pre-settlement fund in a single installment while in scheduled payment, the funding is provided in the form of monthly installments over many months. Other than that, both these programs are exactly the same and follow the non-recourse policy.
Benefits of Scheduled Payment and Legal Funding
There are a number of benefits that one can avail by applying for scheduled payment and legal funding.
• It will lower down the funding costs as the funding fee will only be applied on the installment amount and not on the total funding amount.
• It will offer you a regular income every month that is going to help you in paying off the monthly bills and other expenses that you might have.
• It will save you from spending more than you need to which might happen if you get a lump sum funding.
• It can offer some emotional relief to you and can sustain you until you receive the cash settlement from the court.