If you’re the plaintiff in a personal injury lawsuit and your case has been taken on contingency by a personal injury lawyer, you don’t have to necessarily wait for your lawsuit to settle or be decided by a jury to make use of your settlement funds. Instead, you can use a type of litigation financing called pre-settlement funding to access some of that money now, before your case settles.
This is especially useful if, for example, your injuries have meant that you’re not able to work so that the bills are piling up. Medical expenses, too, may be increasing as you continue with your rehabilitation after your injury. It can be difficult to make ends meet, but pre-settlement funding can help take care of those expenses so that you can relax and focus on recovering from your injuries.
How does pre-settlement funding work?
This type of litigation financing is a loan, but it’s not the same kind of loan you might normally think of. With regular loans, you have to go to a lender, have your financial background and income scrutinized extensively, and in essence prove that you are worthy of this loan. Then, you have to pay back that loan with interest if you’re approved.
Pre-settlement funding isn’t like that. With pre-settlement funding, you have to have a personal injury case that’s legitimate, meaning that it’s not frivolous, and you have to have a personal injury lawyer that you’ve hired on contingency representing you in your case. Your lawyer must also agree that applying for this type of litigation funding is suitable. If your lawyer doesn’t agree that you should, you won’t qualify for this type of loan.
If your lawyer agrees that it’s a good idea, you can apply for the loan. Once you apply, the company you choose to handle this type of loan for you will carefully review your application and then grant you what is usually about 10% of your expected award or settlement. If you win your case, you’ll be expected to pay back what you’ve borrowed, plus fees and interest.
If you lose, though, this is where this type of litigation funding is especially helpful. Unlike traditional loans, you don’t have to pay this loan back if you lose your case. Instead, you simply walk away without any further responsibilities, able to move on with your life unencumbered. Ask your attorney about pre-settlement funding today, and whether it’s a suitable option in your situation.