The main reason that you need pre-settlement funding during your pending lawsuit is to pay your bills. One massive advantage of pre-settlement funding is that it allows you to manage your legal fees, medical bills, personal bills, and more while you wait out what could be a lengthy court process.
You and your lawyer may anticipate a favorable judgment, but it may take months to settle your case. During that time, your and your family’s finances may suffer dramatically.
As with most things, there are “pros” and “cons” to pre-settlement funding, but in most cases, it’s a very feasible and sound financial move to make.
In this stressful time, the last thing you want to do is add to your debt. Let’s say you have a pending lawsuit and need cash before your case settles, so you may be researching a “bank loan.”
Most pre-settlement firms, although they do usually charge interest, aren’t like a bank loan at all and are usually a much better option to obtain your much-needed cash.
The main reason is that pre-settlement funding offers much lower risk than a bank loan because you do not have to pay the money back if your lawsuit fails. No monthly payments, interest fees, or new debt would be incurred!
Reliable and sound funding companies will offer you an interest rate low enough to win your business while earning them and their investors a profit at the same time. Yes, they make money, but only if you win your case and obtain your financial settlement.
According to recent 2022 legal pre-settlement funding financing, the average interest cost of a pre-settlement cash advance ranges from 24% a year for attorneys to 35% for you as the plaintiff.
You must note that pre-settlement funding is not a loan; no credit approval is needed to qualify, so no collateral is required, etc., as it would be with a bank. Any funding you do is based entirely on the merits of your lawsuit and nothing else.
When you discuss your case with a qualified Pennsylvania pre-settlement funding firm, they will give you and your lawyer all the pertinent information you need (including any interest charges) before you move forward.
Can Pre-Settlement Funding Help Me Ease My Financial Burden?
The simple answer is yes, it can.
Pre-settlement funding can be a wise and viable way to get at least some, if not all, of the money you have coming to you without all the unnecessary wait time.
These are some everyday financial situations that could be remedied by taking a pre-settlement advance from your lawsuit:
- Pay off your legal fees.
- Make sure your mortgage or rent doesn’t lapse.
- Home improvements you may need to make due to your injury.
- Pay for medical expenses that you need.
- Keep your credit cards, utilities, car payments, etc., current.
- Pay college tuition.
- Pay for needed business expenses, vacations, and much more.
If you have a pending lawsuit, you don’t need the stress from outstanding bills, and pre-settlement funding could be the right choice for you and your family.
Also, insurance companies want to pay you the lowest amount possible and in the quickest amount of time. You might be pressured to accept a “lowball” offer if you have outstanding bills and financial hardship. Even if you realize you should be getting more significant amounts if you waited for your trial.
Working with a Pennsylvania pre-settlement funding firm will allow you to “hold out” until your case is settled and get the compensation you deserve.
A considerably larger payout will also help to offset any interest or loan fees you may incur from your pre-settlement funding.
If I Can’t Work, How Could Pre-Settlement Funding Help Me?
Suppose you had a car accident and have been disabled in some manner. If this occurs, there’s a good chance you won’t be able to work.
Also, insurance companies know this fact and have been known to extend litigation for months or years, so you must settle. Without your income, how will you and your family survive? Pre-settlement funding is a viable financial tool that will allow you to keep up with your bills and maintain your accustomed lifestyle.
You might need to find a new job. You could have been injured and can work but not at your former job. Regardless, you no longer have a weekly paycheck. Pre-settlement funding is a way to obtain cash until your lawsuit finalizes or you find a new job.
What Kind of Lawsuits Might Qualify for Pre-Settlement Funding?
We all are aware that our legal system only sometimes works quickly. This can be especially true when litigating personal injury cases, civil lawsuits, workplace negligence cases, and more. When looking for compensation, it usually doesn’t work in your favor to always come to an immediate and rapid end to your lawsuit. Usually, your law team must fight long and hard for the total compensation you rightfully deserve.
So, the more common types of lawsuits that can usually obtain pre-settlement funding are:
- Auto accidents and other types of traffic injuries.
- Passenger and pedestrian injuries.
- Workers’ comp and workplace negligence cases.
- Premises negligence cases, such as slip & fall incidents, etc.
- Wrongful death cases, and many more.
However, you must always be aware that a reliable and empathetic pre-settlement funding firm takes a significant risk when they provide you with pre-settlement funding; therefore, they usually try to fund the most substantial cases.
If you need cash, though, it’s always prudent and wise to consult with a local Exton, Pennsylvania, pre-settlement funding firm and determine precisely how much financial help you can obtain.
I Have an Active Lawsuit and Need Cash; How Should I Proceed?
Most pre-settlement funding firms advance funds on many types of personal injury, civil cases, and more. They commonly charge no out-of-pocket or up-front costs, and if you don’t win your case, you never have to pay the advanced funds back. Usually, their application can be made online, and the entire process is relatively simple for you and your family.
Also, going through a lawsuit is stressful enough, and you certainly don’t need an enormous financial burden causing more heartache.
Consult with a local Exton, Pennsylvania, pre-settlement funding firm as soon as possible; you could have much to gain and literally nothing to lose.