What Is Pre-Settlement Funding?

If you’ve suffered an injury due to another’s negligence, you might be in a challenging and possibly lengthy battle. You may be unable to work and have additional high medical bills that add to your stress and overwhelming financial worries.

Pre-settlement funding (aka a lawsuit advance) can grant you (as the plaintiff) advanced access to a portion of the money you expect to receive when the court makes its final decision.

It is not dependent on your credit score or other “normal” credit criteria but only on the rational information and prospect of winning your personal injury (or other) case.

By dealing with a known, qualified, and reputable pre-settlement funding company, you can get the money you need now and not experience financial ruin while you fight your case.

Your pre-settlement funding company discusses your case thoroughly with your lawyer and determines a few main points; they are:

  • How solid a personal injury case you have.
  • What your rational chances of winning your case are.
  • How much you are likely to receive.

Also, Pennsylvania regulates pre-settlement funding companies, which are affected by Pennsylvania’s statutes on personal injury, such as Statute 7102. Title 42

An experienced and reputable pre-settlement funding company will consider many factors when making these decisions. Some of these factors include your medical records, police reports, court filings related to your case, witnesses, and much more. However, unlike the courts, which could take months or years to settle, the funding companies do this in days or weeks.

After all the legal information is analyzed, the pre-settlement funding company will decide whether to fund your case (sometimes done within days or weeks) and how much is reasonable to advance.

One of the essential things to note is that if you lose your case, you never have to pay the pre-settlement funding company back; they are taking all the risk. Also, once they approve your advance, you’ll get the funds within days of signing your paperwork. Funding companies usually send the advance via secure wire transfer.

Is Pre-Settlement Funding Considered a Loan?

Different states have different opinions on whether to consider pre-settlement funding as a type of loan. However, from an operational point of view, it certainly is not your “typical” loan as it only must be paid back if you win your case.

The major trade organization representing pre-settlement funding companies maintains that these products are not loans and shouldn’t be regulated as such. This is because they are not at all “traditional loans” in several ways, including that they are not required to be repaid if the settlement or court award doesn’t materialize if the consumer loses their legal case.

How they are classified doesn’t commonly affect you, as these “advances” are designed to help you get through difficult situations at a specific time.

If you’re hurt, your income may certainly stop or be reduced; but your bills are not; they keep coming. This, of course, creates more hardship, stress, and troubles for you and your family at a time when you’re fighting for recovery from your injuries.

This “advance” from your local pre-settlement funding company can, and will, be enormously helpful in getting all you need to recover and move forward with your life.

Can Pre-Settlement Funding Help My Win & Get Due Compensation?

When you’re injured, it almost always will up-end your life and your finances. You’re under many unforeseen circumstances, including financial hardship, whether it’s an auto accident, slip & fall, or work-related accident (and any other incident) due to someone else’s negligence.

In most all personal injury cases, your competent and diligent lawyer is suing an insurance company, and not commonly a person or company. Accordingly, insurance companies have batteries of specialists and lawyers whose job is to get you to take the least amount of money possible.

If you’re already battling recovery from injuries and financial hardship, you’re a prime target to take the first or second lowest offer they present and settle your case.

Your lawyer knows this and works for you to get the compensation you need and deserve. That said, the essential benefit (amongst others) of pre-settlement funding is that it gives you time and financial “breathing room” to hold out for months (or sometimes years) by having the money to do so.

By taking advantage of this time provided by the advanced funds, your lawyer can fight for your rights, and get you and your family, the total amount you deserve.

Also, there are no infringements on the advance, and commonly you can use the funds to pay whatever you need when you receive it from your pre-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.

The Insurance companies will do all they can to give you the least compensation possible. Still, by taking advantage of pre-settlement funding, you can give your family and lawyer the time needed to get the compensation you deserve.

Won’t Pre-Settlement Funding Also Take Too Much Time to Obtain?

Usually, your approval for funding will depend on the professionality and experience of your pre-settlement funding company. They are fully aware, however, that “time is of the essence” and you need money rapidly and usually will always endeavor to move as quickly as possible.

Commonly, a reputable, diligent, and experienced pre-settlement funding company has a relatively simple application process.

They will analyze your case and collaborate on the details with your lawyer. You could often have a check in days or a week or two.

Your case is unique, but your funding company knows you and your family need the money now and will work diligently to expedite the process.

You must note, however, that to qualify for pre-settlement funding, your case must meet the following two conditions:

  • You have a valid pending lawsuit.
  • You’re working with a contingency-based lawyer.

Recall also that pre-settlement funding is never predicated on a  credit check, and any assets you have, or don’t have, will not impact your eligibility to receive the money.

Legal funding is a thoroughly “non-recourse” advance! This means that if you don’t win your case, you don’t have to repay the money advanced, nor will your assets ever be touched. Your lawsuit and the compensation you obtain are the only collateral needed for your pre-settlement advance.

I’ve Been Injured, and Need Money Now; What Should I Do?

One of the first things your personal injury lawyers will explain is that a detailed personal injury lawsuit is not a rapid process. Settling quickly is almost always detrimental to you and your family as you’ll take too little compensation and ruin your finances later.

Of course, you must discuss all options with your lawyer and an experienced, qualified advance settlement funding firm.

Universal Funds is a company made up of professional funding experts. They’ve helped thousands of families establish the financial assistance they must have during the complicated litigation and settlement process. Call them immediately at (484) 341-7106, and they will evaluate your case quickly and empathetically and help get you what you need now.

Your recovery is paramount to your and your family’s future. Do your research, but most families find that funding solutions for accident settlements are a welcome relief from financial stress and financial ruin.