Overviews of Car Crash Lawsuits and Lawsuit Funding in Georgia

personal injury lawsuitA Georgia lawsuit funding is an option considered by a plaintiff as a means to pursue claims for damages beyond the amount offered as settlement by insurance companies. While a personal injury lawsuit can help a car crash victim claim compulsory damages in terms of economic and non-economic financial needs, the related proceedings could drag on and take longer to complete and conclude.

In the meantime, savings could dwindle while awaiting the lawsuit judgement, which makes taking out a lawsuit funding a viable solution. Actually, a lawsuit loan company will offer a cash advance of the pending settlement that the court will award.

Just like a typical loan, interest will accrue on the amount of settlement disbursed in advance. The term accrue means that periodic interest charges will be accounted at a certain rate, as additional charges due on the lawsuit loan.

In the event that the lawsuit settlement is awarded, the principal amount advanced plus the total interest charges accrued will be deducted from the proceeds of lawsuit judgement. However, if the actual lawsuit judgement did not meet expectations, let’s say none was awarded or fell short of the total settlement paid by the lawsuit company, the latter cannot demand payment from the plaintiff.

Now here’s the thing, care must be applied when choosing a lawsuit loan company because some are unscrupulous and apply a high rate of interest while at the same time compounding the interests charged on the lawsuit loan. Compounding is a method of calculating interest on a principal amount that already carries interests. Doing so causes the principal amount to balloon and reach great proportions.

Unfortunately many car crash victims fell for  this kind of ploy, they were surprised to find out that a great proportion of their lawsuit settlement were applied as payment of the lawsuit loan,

Impact of Georgia’s Motor Vehicle Fault Rule and the Modified Comparative Negligence Law

car crashIn Georgia, the victim of a car collision can file a lawsuit to claim damages only if he or she is not at fault for causing the collision. The At Fault rule bars the driver in a car collision from pursuing claims for damages if his percentage of fault exceeded that of the other driver.

Under the comparative negligence law, as long as the level of negligence or carelessness that a driver committed to have caused the accident did not exceed that of the other driver’s contributory negligence, he or she can exercise the right to file a lawsuit to claim damages.