Getting injured for any reason will up-end your life and your finances. If you’ve been injured in an auto accident, slip & fall, work-related accident (and any other incident) due to someone else’s negligence, you are amid a personal injury lawsuit.
However, medical bills, lost wages, and more increase rapidly. An accident settlement funding company is an excellent way to obtain compensation now, so your finances aren’t devastated before your case closes, and you receive your settlement.
But what bills do you have to pay with the money you receive? Is it mandatory to pay medical bills or any others first?
The simple answer is that you can use the funds to pay whatever you want if you receive money from your accident settlement funding firm. Your medical treatment and recovery care are vital, but usually, you can pay for them only if you want to. Commonly, no legal requirements and no strings attached to the settlement funding you receive.
Your accident settlement funding firm knows that most American families today may be living from paycheck to paycheck. If you cannot work due to your injuries, you need money now so that your and your family’s finances don’t become another stressful and harmful burden.
After you consult with your settlement funding firm and your pre-settlement money is funded, these funds are yours, so spend however you wish.
However, you certainly need and want to prioritize your bills so that your medical treatment, home, and family finances don’t become another victim of your accident.
Commonly, most recipients of accident settlement funding spend their money on necessities, such as:
- Mortgage payments or rent.
- Car payments.
- Credit card payments and other revolving loans.
- Groceries and other living expenses for your family.
- Medical bills, recovery and physical therapy costs, and more.
You must note that the money is yours to spend without mandatory payments or, commonly, any restrictions whatsoever.
Usually, your medical bills are a priority; you must pay them as your health and recovery are paramount to you and your family. Additionally, though, there are always family bills that must be paid.
When you consult with your qualified and experienced accident settlement funding firm, ask them any questions that concern you. They will always advise you on how to proceed with the available funds, but the final decision is left up to you and your family.
What Happens When I Receive My Settlement Funding Funds?
Each case differs, but commonly when your personal injury case accident settlement is received, certain things must be done.
Usually, your accident settlement funding firm will transmit the funds directly to your personal injury lawyer. Your lawyer will be familiar with these transactions and pay any fees due to the settlement firm and usually deduct any expenses due to them.
Your medical treatment and costs for recovery are vital to you, and your lawyer may advise that these bills should be paid. Also, your lawyer may negotiate with the doctors and hospitals on your behalf and work out the best deal for you. You participate in all these matters, and your lawyer will help determine what bills are pressing and what needs to be paid.
If your law team has negotiated a payment schedule, that will be followed.
It’s vital to remember that your accident settlement funding is designed to get you and your family through the first difficult financial times you may face. Recovering from your injuries is stressful enough; you don’t want collections agencies calling night and day, adding to your worries.
How Does Pre-Settlement Accident Funding Work in Pennsylvania?
Simply put, a pre-settlement funding firm advances the money based on what you may receive in damages from your personal injury lawsuit. It is risk-free for you once the professional settlement funding firm approves it.
The “settlement advance amount” is calculated by the accident settlement funding firm. Once determined, the amount is a “non-recourse” advance. This means you must only pay back the amount you borrow after winning your personal injury case. If you do not win your case for any reason, you don’t have to pay back the advance. So, in most cases, it’s a “win-win” for you and your family.
When your case is settled and “paid out,” the settlement funding company will get its agreed-upon share of the proceeds.
Is a Pre-Settlement Funding Advance Right For Me?
When you get injured, the medical bills, recovery costs, lost wages, and more can be financially unbearable. Most families are stressed when a loved one is injured and certainly don’t need the additional stress of financial strain.
However, each family’s financial situation differs, and you need to do the research necessary to answer the question, “is it right for me?”
There are things you can do, such as:
- Discuss pre-settlement funding with your personal injury lawyer. They will educate you on the options, including pre-settlement funding. It’s a critical part of the process to consult with your lawyer and will help immensely.
- Speak with a qualified, reputable, advanced settlement funding firm. They will thoroughly explain the process, go over your case details, and produce a tenable dollar amount you can receive.
If you decide it’s right for you, apply for pre-settlement funding as soon as possible so the bills don’t mount up.
It’s vital to note that some settlements may be received four to six weeks after your case is settled. However, lawsuits often take months (or more) to settle, and you usually won’t get your settlement funds anytime soon. The time leading up to your settlement continuously varies, and there are multiple factors to consider when asking how long it takes to get a settlement check.
I Am Going Through a Personal Injury Case, But My Family Needs the Funds; How Should I Proceed?
Most personal injury lawyers will often explain that a detailed personal injury lawsuit is not a rapid process. In fact, settling quickly can sometimes be detrimental to you and your family as you’ll take too little compensation and ruin your finances later.
If you can’t work, most families cannot survive months without the income they’re used to receiving. Of course, you must discuss all options with your lawyer and an experienced, qualified advance settlement funding firm. However, when the settlement firm offers you a firm figure, they’re the ones that take the most risk by far.
Your recovery is paramount to your and your family’s future. Do your research, but most families find that advance settlement funding is a welcome relief from financial stress and financial ruin.