In legal practice, post-settlement funding is provided to a former plaintiff in exchange for payments at a later date. Once a settlement has been agreed upon, a plaintiff may require financial aid as many settlements are structured over a long period.
The post-settlement funding provides them some form of compensation during the time to which they will be unable to access the money they are entitled to. Although a settlement may have been finalized, plaintiffs will not necessarily have immediate access to these funds.
This can become a burden for both the plaintiff and their lawyer/attorney. Many plaintiffs will use the settlement as financial aid to pay off any legal debt they have obtained during a lawsuit.
Post-settlement funding is largely based on the involved parties and the outcomes of the case. The use of post-settlement funding has become a crucial aspect for plaintiffs who managed to win a lawsuit, who require supplementary funding to settle any legal debt.
Benefits of post-settlement funding:
If a plaintiff has successfully secured the settlement through the court of law, the plaintiff can then apply for post-settlement funding. The funding is acquired through a release between the insurer and the plaintiff. To obtain the funding, a plaintiff should provide the settlement agreement and the outcomes thereof.
Applications for the funding can be done by the plaintiff, or with the assistance of their lawyer. The advance will then be sent to the insurer and paid out once accepted.
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