If you’re in a lawsuit, it’s normal to need cash quickly to pay for medical expenses, lost wages, and much more. During this crucial time, pre-settlement funding is an excellent financial tool that will help you and your family immensely.
While your case is ongoing, you can apply for pre-settlement funding and usually get the compensation you need now for specific circumstances. Pre-settlement funding often is used when your case involves physical injuries from an accident.
However, depending on the specifics of your case, your personal injury case may take months or more to settle. This can be a long and expensive wait for you and your family. However, the legal battle will be worth the wait when you win.
Pre-settlement funding with a well-known, reputable pre-settlement funding company will get you the cash you need now and solve any additional significant financial problems you may have.
The question arises, though, what happens with pre-settlement funding if you don’t win your case?
You may apply for a bank loan or personal loan, but they have strict terms on repayment. So, it doesn’t matter if you win or lose your case; you will need to pay back your debt. This will add to your already dire financial problems.
However, this is not the case if you obtain pre-settlement funding. If you lose your case, you don’t have to pay back what your pre-settlement funding company has already given you. If you win your case, you will have to pay the money back, and you usually have significant funds after paying your debt.
Pre-settlement is commonly the wiser choice if you’ve been injured and are now saddled with crushing financial debt.
What IF I Win My Case, But Get a Smaller Settlement Than Expected?
There are times when you win your case, but your payout is smaller than you previously expected.
It’s important to note that pre-settlement funding companies only advance (or buy) a portion of what your final payout is expected to be.
The pre-settlement funding firm will also get what they’re due out of your expected proceeds. Accordingly, you will receive whatever amount remains after paying them back.
It also occurs, rarely, that your final pay-out is smaller than what your pre-settlement funding company advanced you.
If this occurs, your funding company will still receive money from the proceeds but may not be able to get all their money back. However, even if your professional pre-settlement funding firm can’t recover all the money advanced from your payout, you’re never obligated to pay the “lost” cash back.
I Need Money Now; How Long Does Pre-settlement Funding Usually Take?
Approval for pre-settlement funding will always depend on the professional funding company you’re dealing with. They know, however, that “time is of the essence” and you need money rapidly and usually will move as quickly as possible.
Commonly, a reputable, diligent, and experienced pre-settlement funding company has a simple application process.
They will thoroughly analyze your case and collaborate on the details with your lawyer. In many cases, you could have a check in days or a week or two.
You must remember that 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.
Also important to note is that pre-settlement funding never requires 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” loan! 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.
How Much Can I Usually Get By Using Pre-Settlement Funding?
You must know that your professional and experienced pre-settlement funding company will provide you with advanced funding that ultimately depends on the strength of your case and its inherent value. Simply put, your funding company will use all the evidence and facts about your case to determine your chances of winning and the expected settlement dollar amount.
Their experience in determining these things helps to protect both you and them. They want to award you the money but also want a reasonable chance of receiving the advance back.
So, each case is unique and is treated as such. Usually, however, you may obtain between 20% to 35% of the final dollar value the company puts on your case.
This percentage depends entirely on the pre-settlement companies’ evaluation of your lawsuit but also considers other things, such as the costs of the case, court fees, and the fees that your lawyer receives.
In most cases, you usually receive the money you need to stay well on your financial “feet” until you receive your final payout.
Also, it’s imperative to note that if it’s taking longer than expected to finalize your case, you may need additional financial assistance even after you receive an initial pre-settlement amount. The good news is that there is no limit to the number of times you can apply for a pre-settlement loan.
By working with a dynamic and experienced pre-settlement funding company, they will re-evaluate your case to determine the potential value of your final settlement.
So, you may take a portion of that “re-evaluated” amount regardless of whether you take it in one advance or multiple advances.
I Need To Obtain Pre-Settlement Funding; How Should I Proceed?
When you’re injured and can’t work, the bills that mount up can be enormous. These financial pressures will be added to your already stressful situation.
Also, your personal injury lawyer will explain that any lawsuit, including personal injury lawsuits, never is a rapid process. The insurance companies will use time against you, knowing you need funds now. So, they push you to settle quickly, which is almost always detrimental to you and your family as you’ll accept far too little compensation.
Get the professional financial help you need, and discuss your case with a settlement loan for a personal injury claims firm that has your best interests in mind. Get the facts and money you and your family need to survive and thrive in the future.+