When you’re involved in a personal injury lawsuit, the financial strain resulting from things like medical bills, lost wages, and other expenses can be overwhelming.
The good news is that you have options! Pre-settlement funding, for example, is great for helping to alleviate financial burdens during the legal process. However, the process can sometimes be complicated and you’ll need some help from your lawyer. Even though you need help from your lawyer, they can’t deny you from getting a pre-settlement loan, that is your choice! Let’s take a look at what pre-settlement funding is and what you need from your lawyer in the process.
What is pre-settlement funding?
Pre-settlement funding is essentially a cash advance provided to plaintiffs involved in ongoing legal proceedings. It helps to cover immediate financial needs while the plaintiff is awaiting compensation from the resolution of their case.
It differs from a traditional loan in that you are selling the right to a portion of your anticipated compensation to the funding provider, in exchange for money now. When the case is resolved, a portion of the funds will go to the funding provider and you will receive the rest.
Since this is not a traditional loan, there is no need for credit checks or a good score. However, whether or not you get funding, or the amount of funding you get, depends on how strong your case is.
What you need from your lawyer
It is important to understand that your lawyer will have to help you in the process of getting pre-settlement funding. This means that in order to qualify, you will have to have legal representation. This is also a safeguard for the pre-settlement funders as a case where the plaintiff has legal representation is a lot less risky than one where the plaintiff is unrepresented.
Since your access to funding is dependant on the strength of your case, pre-settlement funders will likely chat to your lawyer to help them with this evaluation. They will run through things like the facts of the case, your attorney’s argument and mitigating factors on the defendants side to help them decide.
Pre-settlement funding isn’t right for every situation, your lawyer will be able to give you advice on whether or not it is a good option for you.
FAQs
No, your lawyer can’t deny you a pre-settlement loan. While, they can advise you on whether or not it is a good option for you, it is ultimately your decision. You do, however, need to have a lawyer in order to qualify.
Here is one answer to that question! In short, yes you can get multiple pre-settlement fundings on your case. Your case needs to be able to support both or all of them though.
Yes! Being denied funding initially doesn’t mean you wont get it at all. Legal cases are dynamic and the strength of your case may increase as time goes on.