Settlement Finance

When a plaintiff wins a lawsuit, they are typically entitled to a monetary award. However, this award may be subject to an appeal process, which can take months or even years to resolve. In the meantime, plaintiffs may face financial difficulties as they wait for their award to be paid. To address this issue, some plaintiffs may turn to cash advances on appeal lawsuits. This article will explore the risks and benefits of these types of advances and provide guidance on when they may be appropriate.

Cash advances on appeal lawsuits, also known as post-settlement funding or post-judgment funding, provide plaintiffs with a lump sum of cash in exchange for a portion of their potential award. This can be an attractive option for plaintiffs who are struggling financially and cannot wait for their award to be paid. However, these advances come with significant risks and drawbacks.

One of the most significant risks of cash advances on appeal lawsuits is that they can be extremely expensive. The fees and interest rates associated with these types of advances can be much higher than those of traditional loans or credit cards, and they can add up quickly over time. In addition, if the plaintiff does not win their appeal, they may be required to repay the advance, along with interest and fees, which can be a significant financial burden.

Another risk of cash advances on appeal lawsuits is that they can be a distraction from the appeal process itself. Plaintiffs may be tempted to focus more on the financial aspects of their case than on the legal arguments and evidence that are critical to winning their appeal.

Despite these risks, there may be situations in which a cash advance on an appeal lawsuit is appropriate. For example, if a plaintiff is facing significant financial hardship and has no other options for accessing cash, a cash advance may be a lifeline. In addition, if the plaintiff has a strong case and is likely to win their appeal, a cash advance may provide the resources they need to continue fighting their case.

In order to make an informed decision about whether to pursue a cash advance on an appeal lawsuit, plaintiffs should consult with an experienced attorney who can help them weigh the risks and benefits. An attorney can also help plaintiffs navigate the complex legal and financial issues that may arise in the course of an appeal. By working closely with an attorney, plaintiffs can increase their chances of success and minimize their financial risks.