Is pre-settlement funding something you should consider if you’re involved in a personal injury lawsuit and stretched for money to pay the bills? Absolutely. Litigation funding companies offer these loans, which are actually a cash advance against a pending settlement, to those with strong claims who qualify. While you may have the financial resources to pay your medical expenses, bills and other obligations even if it takes months or longer for your lawsuit to reach settlement, many people do not. This can make it enticing to simply settle for whatever the insurance company offers, even though it’s much less than you deserve. What do you need to know about pre-settlement funding?
This type of loan is non-recourse, meaning that even if you are given an advance, you do not repay it should you not win your lawsuit. You only repay the loan when you do win, and have possession of your money. At that time you will be responsible for paying the minimal fees and interest, so you never pay anything out of your own pocket.
Pre-settlement funding allows you to get the money you need immediately, most of the time within 24 hours. This money can be used to pay utility and other household bills, doctor and medical expenses, for attorney fees and repairs to any property that was damaged in the course of the accident that led to your injuries.
When you apply, you never have to worry about being asked for information such as your employment history or status, credit rating, etc. The only data your attorney will be asked to provide is that which pertains to your accident and the injuries you sustained as a result. Whether you qualify for pre-settlement funding has nothing to do with your personal situation.
How much money can you expect to be advanced if you qualify? Most litigation financing companies advance about 10% of a plaintiff’s expected settlement. This means that if you and your attorney expect to be awarded $100,000, you may be advanced an amount somewhere in the range of $10,000. Most funding companies are willing to advance as little as a few hundred dollars to as much $250,000 or more, depending upon the client’s expected winnings.
Pre-settlement funding is a no-risk way to obtain the money you need right now, when you need it most. An advance will not only make it easier for you to pay bills and avoid financial stress, it will provide you with the fees necessary to help your attorney build a strong, viable case. Ask your lawyer about this type of funding today, and put your money worries behind you.