You sue XYZ Insurance Company for 100,000 because of injuries you suffered in a traffic accident caused by one of the companys insured drivers. A lawsuit lender evaluates your case and offers to lend you 25,000 at 3 per month. A year later, your case settles for 100,000. The attorneys fee, litigation expenses, and medical liens total 50,000. Of the remaining 50,000, you must pay the litigation lender the principal of 25,000 plus its funding fee of approximately 12,500.
You then receive the remaining proceeds of 12,500. 100,000 Settlement amount. - 50,000 Attorneys fee, litigation expenses and medical liens. - 25,000 Principal repaid to Lawsuit Lender.
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