How Does Pre-settlement Funding Work?
You’ve had an accident and been injured due to another’s negligence. You must file a lawsuit for damages, but that usually is a challenge, and you will be in a lengthy legal battle. If you’re unable to work and have unexpected medical bills and more, this will all lead to more stress and possibly overwhelming financial situations.
However, there are pre-settlement funding companies that will help you through this difficult time.
Pre-settlement funding, also known as a lawsuit advance, is a highly documented, reputable way to give you access to a part of the money you expect to receive when the final legal decision is made on your case.
Pre-settlement funding does not depend on your credit score (nor depends on it) or any other standard credit criteria but only on the estimated amount you will receive when you win your personal injury lawsuit.
If you work with a well-known, qualified, and reputable pre-settlement funding company, you can now obtain the funds you and your family need and avoid possible financial ruin while you fight your case.
After you discuss your situation with your pre-settlement funding company, they will analyze your situation with your personal injury lawyer and determine how much to advance you based on a few key details, such as:
- The solidity of the details of your personal injury lawsuit.
- Your lawyer will estimate your chances of winning your case.
- And the critical question: how much will you likely get in compensation? Other factors considered in our case could include your medical records, police reports, court filings, witnesses, etc.
Remember that the courts may take months or years to settle your case, but your pre-settlement funding company knows you need the funds now and will usually complete their evaluation in days or a few weeks.
When all the facts are collected and analyzed, your pre-settlement funding company will quickly decide whether to fund your case and how much they will reasonably advance.
But If I Receive Pre-Settlement Funding, What If I Don’t Win My Case?
When you’re hurt and can’t work due to your injuries, your lawsuit may be pending, but bills are mounting, and your current financial stress can be overwhelming. This is precisely the time that pre-settlement funding can be an invaluable resource.
One of the first questions most people ask is, what happens if I lose my case? Do I have to repay the advance that I’ve been given? This is the good news: even if you lose your case, you aren’t required to return the funding you’ve already been given.
Pre-settlement funding is a form of non-recourse funding. You don’t have to pay back the advanced funds if you lose.
However, the funding company does have a legal right to a portion of your settlement after you win, including fees and interest rates. Of course, before you proceed with your advance, all reputable and long-standing pre-settlement funding companies will contractually detail all you must pay when you win, so there are no surprises.
Sometimes, even if you lose your case and previously had pre-settlement funding, you could obtain funding again if you start a new case. If this occurs, you could apply for pre-settlement funding again, based on the details of your unique case and that it meets the funding company’s criteria.
What Are the Steps I Must Take To Obtain Pre-Settlement Funding?
Applying for pre-settlement funding is usually a fast and relatively simple process. However, the most important thing is finding a reputable, long-standing, qualified pre-settlement funding company.
A lot of the work can be done online, and your pre-settlement funding company will ask you to submit all the details of your unique case. For example, the precise nature of your lawsuit, a probable amount settlement agreement, and your personal injury (or type of lawyer. depending on your case) information about their legal representation information.
Once your funding company has all the pertinent information, they will evaluate your case’s merit and potential outcome to determine your funding amount. The approval process is commonly quick, as your funding company knows you need the funds as soon as possible.
If your funding company approves your advance, you’ll commonly get the agreed amount of funds within days of signing your paperwork. This is widely done by wire transfer directly to your bank.
What Can My Pre-Settlement Funding Amount Be Used For?
When used correctly, pre-settlement funding can be a viable way to get at least some, if not all, of the money you have coming to you, the money you and your family need now.
Many financial situations could be significantly helped by taking a pre-settlement advance from your lawsuit, such as:
- Paying off part or all your legal fees.
- Making sure a mortgage or rent doesn’t lapse or go past due.
- Home improvements that may be needed due to your injury.
- Pay for medical expenses that are costly and unexpected.
- Maintain all your current bills, such as credit cards, utilities, car payments, etc.
- Pay for business expenses, vacations, and more.
So, if you have an impending lawsuit, you don’t need to endure more stress due to outstanding bills or expected expenses.
Another essential point is that all insurance companies want to pay you the lowest amount possible and in the shortest amount of time. If you’re under dire financial pressure, you could be forced to take a “lowball” offer. This could be true even if you realize you would be getting a more significant amount if you had the time to wait for a trial.
Don’t allow yourself to be pressured, and by dealing with a Pennsylvania pre-settlement funding firm, you will have the time to “hold out” and get the compensation you deserve.
May Lawsuit Is Valid, But I Need Money Now; How Should I Proceed?
Personal injury lawyers will explain that a detailed lawsuit is not quick. If you are forced to settle too quickly, it is usually detrimental to you and your family, as you’ll accept far too little compensation and ruin your finances.
Universal Funds is a reputable, long-standing professional funding company that’s helped thousands of families establish the financial assistance they must have during the complicated litigation process.
Call them today at (484) 341-7106, and they will evaluate your case rapidly and empathetically and help get you the funds you need now.
Your recovery is paramount to your and your family’s future. So, don’t hesitate, as most families find that pre-settlement funding is a welcome relief from financial stress and financial ruin.