Filing and pursuing any lawsuit is expensive and time-consuming. Even when a big verdict is expected or a settlement is likely, it takes time before the money actually arrives, but the bills keep coming in. In this scenario, you may need to contact a settlement funding company.
Pursuing a lawsuit can be a lengthy, tedious process, sometimes taking months or even years before a resolution. While you wait for a pending lawsuit to settle, bills and living expenses are sure to pile up quickly, especially if you are dealing with an injury and you cannot work.
Even if you’re sure that you will acquire compensation, until you do, you could face a genuine financial hardship. However, the right settlement funding company can help you pay your bills and provide for your needs.
Pre-Settlement Funding definition
Pre-settlement funding (sometimes called a “lawsuit advance” or “alternative litigation finance”) is what happens when a plaintiff (an injury victim or someone else bringing a lawsuit) is provided with his or her compensation in advance of a negotiated settlement or a jury verdict.
A company that provides pre-settlement funding will review a plaintiff’s application and then contact the attorney to confirm the facts of the case. If the settlement funding company believes the personal injury claim will prevail, the plaintiff will receive a pre-settlement funding offer.
Is a Pre-Settlement Cash Advance a Loan?
Pre-settlement cash advances are different from conventional loans in several important ways. If your lawsuit does not succeed or if your compensation is not paid for any reason, you keep the pre-settlement cash advance and it does not require repayment.
Additionally, no credit check is required for pre-settlement funding because there are no monthly payments, and pre-settlement funding has no effect on your consumer credit rating. While pre-settlement funding is not a loan, it does provide funds during lengthy legal proceedings.
Your settlement funding company is reimbursed directly from the settlement funds, so no money comes directly from your pocket and no monthly payments have to be made.
What Can Pre-Settlement Funding Accomplish?
If you need immediate cash while your personal injury case is pending, the right settlement funding company can provide it. By easing your financial pressures, pre-settlement funding can give you the additional time that you and your attorney need to negotiate a better settlement.
If a reasonable settlement is not forthcoming in negotiations between the two sides, pre-settlement funding gives you the time and ability to take your case to trial. You’ll be able to pay your bills and meet your other financial obligations with assurance and peace of mind.
What Else Should You Know?
It’s not always easy to prove that you’ve been injured by someone who was negligent, so it’s important to be advised and represented by a successful and effective personal injury attorney.
But even with the best attorney, financial pressures could force you to take a low settlement offer – or even drop your case entirely. Don’t let that happen. If you’ve been injured by negligence, you need the right attorney, and you may also need the right settlement funding company.
You can learn more about pre-settlement funding by speaking with the funding professionals at Universal Funds. We are ready to help you while your lawsuit is pending.