Although many clients seek a “loan” or “advance” to pay for emergency living expenses (such as overdue rent, groceries, and mortgage payments), some clients need the funds to pay for medical procedures. Clients turn to funding since it is the only way that they can pay for the surgery and return to normal activities.
Here is how it works:
Jimmy McLean sustained a torn meniscus and needs surgery as a result of his trip and fall on a sidewalk.
Although he works in construction, Jimmy has no medical insurance. The injuries prevent Jimmy from returning to work.
In order to fund the surgery, Jimmy turns to a litigation funding company, Paymore, which will pay for the surgery. Paymore pays the surgeon, the surgery center, and other medical personnel involved in the surgery.
The surgery costs $10,000. The litigation finance company pays this. Jimmy owes nothing to the surgeon and surgery center. However, Paymore has purchased an interest in Jimmy’s potential settlement which is equal to the $10,000 and an agreed interest rate. Paymore will be paid out of the settlement. Paymore only gets paid out of the settlement, and Jimmy owes them no money if the case is lost.
The surgery is successful, and Jimmy can return to light duty.
If you need litigation funding you should discuss this with your attorney.
Mark E. Seitelman, 11/23/10, www.seitelman.com.