Settlement Funding for Third Party Accident Cases
Fair Rate Funding helps clients obtain third party lawsuit loans through accident cash advances prior to settlement.
Many states have laws in place to cover employees if they become injured while on the job. These are typically referred to as worker’s compensation cases but are often caused by a negligent “third party.” What this means is that the worker is injured as a result of someone other than the employer’s negligence. When this occurs, not only does the injured employee have a claim for worker’s compensation benefits, they also have a third party claim for negligence.
While workers compensation awards are limited to a statutory schedule, negligence settlements are normally larger than compensation benefits. However, money spent by the employer for medical treatment and permanency awards must be at least partially paid back once your third party case settles.
If you have a third party lawsuit, the worker’s compensation claim proceeds as usual. The injured worker then files a third party lawsuit to recover damages, usually in state court, which a judge or jury would normally determine.
An example of a third party case might be when a truck driver is injured in a car accident through no fault of his own. The truck driver files a worker’s compensation claim as well as an automobile accident lawsuit against the at fault party.
The Good News About Third Party Cases
The good news about third party cases is that plaintiffs receive workers compensation benefits while the 3rd party case is progressing. This is a welcomed benefit because the worker simply cannot work as before the accident.
The other good news is there is another party from which to collect damages. The accident happened. There is nothing you can do to change the fact. But workers compensation benefits, by themselves, are normally woefully short in making the injured victim whole again. Having a third party to go after gives plaintiffs the ability to secure even more compensation for their injuries.
And the Bad News…
The bad news is that temporary disability payments are normally for far less than what the worker would earn prior to the injury. Some states for example, allow for a temporary disability benefit of 2/3rd of the worker’s average weekly wage. For most workers, the amount leaves them with a financial shortfall each and every week.
The payments only last until the worker returns to the job. That only compounds the problem. If the worker can no longer work, benefits are supposed to continue. In reality however, worker’s compensation insurance carriers rarely continue to pay indefinitely. Most claimants reach maximum medical improvement (MMI) and benefits cease, leaving the worker’s lawyers with the task of finalizing the benefits.
Further, although there is more money available because of the third party, the workers compensation benefits, including medical treatment, must be reimbursed by the settlement proceeds. The percentage amount varies in each jurisdiction but is normally required and is known as a workers comp lien among attorneys.
The Need for Third Party Lawsuit Loans
Similar issues face almost all personal injury plaintiffs. That is, injured workers encounter financial stress due to their inability to work after an accident. There is always a lag in time between an accident and the recovery of some type of compensation. Plaintiffs need the financial staying power to wait out the litigation process. The lawsuit funding industry was born in response to this situation.
What are Third Party Lawsuit Loans?
Third party accident lawsuit loans are financial transactions in which a lawsuit lender advances money to a plaintiff prior to settlement. The plaintiff pledges a portion of the future settlement in return.
How Do Third Party Lawsuit Loans Help Plaintiffs?
Lawsuits can take a very long time to conclude, especially if there are serious injuries involved. During the recovery process, the plaintiff still has to pay his/her bills, eat, and live. With the significant cut in income because he/she is unable to work in the same capacity as before, many plaintiffs face financial difficulty and need cash now to keep up with their daily living expenses.
Third party lawsuit loans allow plaintiffs to endure a long, drawn out, litigation process by paying for living and other expenses while the case is going on. Because plaintiffs have financial strength, they are not forced to accept less than fair compensation for their injuries.
Extra financial flexibility in the form of cash is always welcome. A settlement funding company like Fair Rate Funding can advance cash today because a sizable settlement will be received at the conclusion of the claim.
What Do Third Party Lawsuit Advances Cost?
Funding companies charge a variety of lawsuit loan rates to their customers. Some charge outrageous fees which can range from 3.50% to 4.99% compounded monthly. These large charges can often hinder settlement negotiations or prohibit a settlement altogether.
Fair Rate Funding charges a “fair” rate of 18% of the contract amount every six (6) month period thereafter for preferred cases. These are non-compounding.
If You Have Any Questions, Call 888-964-2224
How Do I Apply for a 3rd Party Lawsuit Cash Advance?
To begin the “funding process” simply click the Apply Now button at the bottom of this page or you can visit our submission form. Someone will contact you shortly so we can begin the process.
Why Choose Fair Rate Funding for Third Party Case Funding?
Fair Rate Funding offers the lowest rates in third party lawsuit settlement funding for third party cases since 2007.
We specialize in providing the lowest rates for settlement funding in 3rd party injury cases. Fair Rate Funding provides the lowest rates for lawsuit funding now against the proceeds of your case. If you are not successful in your case, the advance does not need to be repaid. We take the risk and you can focus on more important things.
Give Us a Call – Risk Free!
If you have a lawsuit based on a third party claim and have a lawyer representing you on a contingency fee basis, which means the attorney is only paid if you win the lawsuit, you may eligible for lawsuit settlement funding from Fair Rate Funding. If you need cash now while waiting for your Third Party Accident case to finish, we can provide settlement funding to help you while your case is litigated.
We know you have a choice of lawsuit settlement funding companies and are happy to assist you. To obtain a lawsuit loan in the quickest and easiest manner, please fill out the quick application or call 888-964-2224. You can then relax and allow Fair Rate Funding to work for you. We routinely provide lawsuit cash advances within 24 hours of receiving the paperwork from your attorney.
We provide settlement funding services for Third Party lawsuits for the following states: Alabama, Alaska, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Louisiana, Maine, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin, Wyoming and the District of Columbia.
Thank you for choosing Fair Rate Funding.