If you have been injured by negligence and you take legal action, you may be unable to work, and you may not know how you will pay your medical bills or other expenses while your claim is pending. Non-recourse lawsuit funding from a settlement funding company may be the answer.
Non-recourse lawsuit funding is not a conventional loan or traditional financing. A loan must be repaid. If you default for any reason, a lender has the right to garnish your wages, seize other assets, or even file a lawsuit against you.
How Does Non-Recourse Lawsuit Funding Work?
But with non-recourse lawsuit funding (also called pre-settlement funding), repayment to the settlement funding company is taken directly from your personal injury award. You can’t default, and no creditors will be harassing you.
Moreover, there is no credit check and no employment requirement for non-recourse lawsuit funding, and most importantly, if for any reason your lawsuit fails or you are not compensated, you keep the pre-settlement funding and pay the settlement funding company nothing.
If your personal injury claim is strong and likely to prevail, a settlement funding company is more likely to approve you for pre-settlement funding and make you an offer based on your expected compensation amount.
Pre-Settlement Funding Can Reduce Your Stress
Any lawsuit is going to be stressful. If you are recovering from a serious injury and pursuing a lawsuit at the same time, you do not need added financial stress. Non-recourse lawsuit funding can eliminate financial stress and “tide you over” financially until your claim is resolved.
Non-recourse lawsuit funding is sought primarily by injury victims who are waiting for their claims to move through the personal injury process. However, non-recourse lawsuit funding is also available to help personal injury victims even after their claims have been resolved.
Personal injury compensation is sometimes paid in a lump sum, but other personal injury victims choose to take their compensation payments over time, in installments.
Can You Sell Structured Settlement Payments?
If you choose to receive structured settlement payments as compensation for your personal injury claim, but subsequently, you need a lump sum for a personal emergency, a financial hardship, or for any other reason, you may be eligible to receive non-recourse post-settlement funding.
In most cases and in most states, the sale of a structured settlement – non-recourse post-settlement funding – must be approved by the court, although that is usually a formality.
After a structured settlement buyer determines your eligibility for post-settlement funding, you can decide how many payments you are selling, and the buyer will make an offer. If you accept that offer, you’ll sign the sales contract, and the buyer will petition the court to approve the sale.
What Will You Receive for Your Structured Settlement Payments?
A number of considerations must be taken into account when determining the final lump sum figure you will receive for your structured settlement payments. Make sure that the settlement buyer answers all of your questions and that you are entirely comfortable with the transaction.
For an estimate – or if you simply need to learn more about selling your structured settlement payments – speak promptly with the settlement funding professionals at Universal Funds. It is our privilege to serve you.