Navigate Financial Challenges During a Lawsuit With Pre-Settlement Funding
Pre-settlement funding is a type of litigation finance that provides cash advances to plaintiffs while waiting for their cases to be settled or awarded. Qualification for this type of funding is based on the strength of your case, its value, and a thorough evaluation by the lawsuit loan company.
You Can Pay Your Bills
While waiting for a lawsuit to settle, many people must keep up with their monthly bills. They may have rent, utilities, insurance, food expenses, medical bills, and other necessities that must be paid. They may also need to replace a lost job or have a supplement income during job searching. That is why it’s vital to use pre-settlement funding to cover these expenses and keep their finances in check until they receive a payout from their case.
With pre-settlement funding, a person can get a percentage of their future settlement upfront. The company will calculate this amount based on the estimated value of the claim and the likelihood of winning the case at trial. In addition, the loan typically doesn’t require a credit check and can be processed within days. It is also often non-recourse, meaning that if the plaintiff loses their lawsuit, they won’t have to pay back the money.
Feeling overwhelmed during a lengthy legal battle can be accessible without this financial support. The pressure to pay bills and stay afloat can cause plaintiffs to accept lowball offers from insurance companies. A person who qualifies for pre-settlement funding can hold out for a more extensive settlement, giving them the leverage they need to fight for justice and get what they deserve. For example, a plaintiff can decide not to accept an offer from the insurance company that is less than what they were injured for because they can wait for a better offer from their attorney.
You Can Pay Your Attorney
If you are injured and unable to work, your bills can quickly pile up. Sometimes, a lawsuit advance can help you pay your necessary expenses so you don’t get buried in debt or default on your loan. It can also help you keep your finances in check and ensure that your attorney is paid on time so they can continue working on your behalf.
Unlike bank loans, lawsuit financing companies take on all of the risks of your claim. Therefore, the amount of money you are offered depends on the value of your case and your chance of winning. The company that offers pre-settlement funding will usually discuss your case with your lawyer to determine this. The company will then take on the liability for your lawsuit and may charge a fee to cover this cost.
Obtaining lawsuit funding is usually easy and convenient. You will fill out an application and provide the necessary documentation to prove you are eligible for funding. The process can be completed in several days or weeks, and you will receive your funds. The procedure may vary slightly from one lending company to the next. Still, most will deposit funds into your account electronically or send you a check to be delivered to your attorney’s office.
You Can Make Emergency Expenses
Whether you are recovering from serious injuries that have left you out of work or struggling with medical bills, a lawsuit can put you in a financial crisis. With the help of pre-settlement funding, you can access cash in your pocket to pay necessary expenses and keep your finances in check. Unlike traditional loans, you won’t have to worry about credit checks or employment verification. You won’t be required to repay the loan if your case does not settle in favor of your claims.
If you have an ongoing personal injury case involving auto accidents, workers’ compensation, civil rights, wrongful death, sexual abuse cases, or medical malpractice, you may be eligible for lawsuit funding. Before you apply for legal funding, however, consult with your attorney. They can advise you on which funding company is the best fit for your needs and your case.
Aside from getting a pre-settlement loan, ask friends and family for help. You can use social media platforms to make it easier for people in your community to contribute and support you during a difficult time. Consider setting up a savings account solely for legal and associated fees. With these options, you can get the cash you need to pay your bills and stay on top of your finances without compromising your case.
You Can Pay Yourself
While waiting for your lawsuit to settle can take months or even years, pre-settlement funding can give you the funds to pay your living expenses and keep your finances in check until your settlement comes through. As a result, you don’t have to stretch the limits on your credit cards or ask friends and family for money.
Unlike many types of personal loans, there is no need to have a perfect credit score to qualify for pre-settlement funding. Instead, legal finance companies assess the plaintiff’s case and overall credibility through a thorough qualification process. It ensures that the cash advance will align with the strength of the case and the plaintiff’s needs, minimizing risks for both parties.
When you receive your lawsuit settlement, the proceeds will go to paying your lawyer and court fees. Then, the pre-settlement funding company gets paid back. If there’s money left over, you get it to keep.
While there are excellent and bad pre-settlement funding providers, not all of them operate ethically or with the best interests of their clients in mind. That’s why finding a reputable company that takes your case seriously and operates with your best interest in mind is crucial. You’ll want to compare quotes from several companies, including their rates and fees.