Pre-settlement funding is simply a process in which an injured victim who qualifies may get an advance on a pending personal injury lawsuit settlement. If you qualify for litigation financing, the money you receive can be used to pay household bills, medical costs, to buy groceries, for attorney fees and more.
Personal injury plaintiffs often face a very difficult situation financially; between medical costs and lost wages, it can become nearly impossible to pay the bills and meet financial obligations. This is where an advance comes in handy, and can possibly prevent foreclosure or bankruptcy.
How much of an advance can you get if you qualify for pre-settlement funding? In most cases, about 10% of what you expect to win in your lawsuit. For instance, if your attorney filed a lawsuit for $375,000, you can expect an advance of about $37,500 if approved for an advance.
What does it take to get approved? Your lawyer will submit the necessary information to the litigation financing company regarding the lawsuit, how your injuries occurred, and the seriousness of those injuries. Most applicants who have strong cases which are likely to be won do qualify. Frivolous or “weak” cases are not accepted. In addition, it makes no difference if you have bad credit or no credit. Litigation funding companies are interested only in the validity of your claim, not your background record or employment status.
How do you repay the advance? Pre-settlement funding is a process which is no recourse, which means that you only repay the advance and applicable fees and/or interest if you do win your lawsuit. If you do not, you owe nothing. You will only repay the funding company at the time your lawsuit is won and you have your money in hand, so there are no monthly payments to worry about.
There are no up-front costs or out-of-pocket expenses with pre-settlement funding, and you can get the money you need almost immediately if you qualify. In essence, you are simply “borrowing” against your own money. Once you repay the litigation financing company the amount that was advanced to you plus fees and interest, what remains is yours.
Pre-settlement funding makes it possible to live comfortably and keep creditors from hounding you while you wait for your lawsuit to reach completion. Your attorney knows all about this process, so discuss the benefits and whether it would be a good option for you today. You could have the money you need by tomorrow!