When you or a family member have suffered injuries due to negligence, waiting for months while involved in a personal injury lawsuit can be difficult from a financial standpoint. Pre-settlement funding can help with household bills, medical costs, and other expenses while you are waiting for the weeks or months it may take your lawsuit to reach settlement.
There are many more costs associated with being injured than most people realize. Not only are the fees charged by hospitals and doctors astronomical today, you may also be unable to work; time spent in court can affect your income. Soon, you find that the thought of settling with the responsible party for less than you deserve looks more attractive all the time. With pre-settlement funding, those who qualify can avoid settling for a fraction of the compensation they are entitled to.
What is pre-settlement funding?
Also referred to as litigation financing, this is a process in which those who qualify may get an advance, usually about 10%, of the settlement they expect to win. This money is available almost immediately if you qualify, so you can pay household bills, buy groceries, and meet other financial obligations.
Not a loan, litigation funding requires no collateral; the only factor which determines if you qualify is whether you have a strong case. The funding company will want the details of your injuries and how they occurred (car accident, defective product, nursing home neglect, etc.) in order to determine if your case is strong and will likely win in court. Your attorney will provide the necessary information, which will not include personal information such as your credit history, employment status, etc.
One huge advantage for personal injury plaintiffs with pre-settlement funding is that the process is non-recourse. This means that you only repay the advance to the funding company if you do win your lawsuit; if you do not, you owe absolutely nothing – no fees, no interest, etc.
There are also no out-of-pockets costs or upfront fees, so you never have to worry about spending money you do not have, which would only worsen your financial situation.
Unfortunately, many injury victims are forced to settle with defendants and their insurance company for far less in damages than they deserve. This can lead to financial disaster; however, for some it seems the only choice is to settle, as personal injury lawsuits are widely known for lasting months or even longer.
Pre-settlement funding is a process you should speak with your lawyer about today. If approved, the cash advance you receive will make it possible for you to live comfortably and pay your bills while waiting for your lawsuit to settle.