If you’re filing a personal injury case, you may be counting on the compensation you receive to cover your expenses. The damages you have incurred have no doubt put more financial strain on you and your family.
However, lawsuits take a long time to resolve, which means that it may be a while before you see a penny from your compensation. It could take months or even years to get the money you deserve. All the while, your daily expenses, the expenses from your injuries, and a lack of income from being unable to work will take their toll.
This is precisely why many injury victims turn to pre-settlement legal funding to get money when they need it most.
What Is Pre-Settlement Legal Funding and How Does It Work?
Pre-settlement legal funding, also known as personal injury loans, is a method for plaintiffs to get money before they get the funding from their settlement. It is different from a traditional loan, which would require good credit. Take a look at how this funding process works to better understand it.
No Risk Funding
One of the key benefits of pre-settlement legal funding is that it is a non-recourse type of loan. In other words, you do not have to pay the loan back if you do not win your case. Ultimately, companies that provide this type of funding will analyze the strength of your case first. If they do not think it is a strong one, they will likely not make a loan contract. This may require them to speak with your attorney first, though you do not need your attorney’s approval to get this funding if it is offered.
Higher Interest Rates
One thing that will be immediately noticeable is the higher interest rates associated with a non-recourse loan. You don’t have to pay anything or qualify for credit before getting your money. This is, of course, a risk to the lender, which is why you can expect to pay somewhere around 44% interest.
The good news is that pre-settlement legal funding lending companies generally do not offer you the full amount up front. This means you’ll still have a lot left over when the settlement comes through, even after paying your lawyer and paying off the loan and its interest.
Learn Your Options
The process will typically begin with an assessment based on your needs. The more severe your injuries are, the more you will likely be offered. Each case is reviewed based on its own terms, and then the borrower will be presented with loan options to choose from.
Estimation of Your Needs
Many factors will be considered when you’re first getting into the funding process. The lender will consider factors such as if you are temporarily or permanently disabled. They will also consider if you are unable to work for the short-term or long-term.
Providing Protection from Debt
This type of funding is available to personal injury victims to help balance their financial situation. It’s not fair that someone else’s negligent actions caused you to become injured and strain on your finances. This is why pre-settlement funding exists; it allows you to pay your regular monthly bills and the expenses from your accident.
How Do You Start the Process for Pre-Settlement Legal Funding?
If you want to be approved for this funding process, you must have an active lawsuit where you will be likely to win the case. This factor, along with the ones mentioned below, will be considered before you can be considered for approval of pre-settlement legal funding.
Get a Personal Injury Attorney
Most people who sustain serious injuries from a personal injury seek the assistance of an attorney. It’s a smart move that can create better results. Attorneys know how to negotiate and can calculate your damages to determine the compensation you deserve. If you want to get a pre-settlement loan, you will need to work with an attorney.
Many injury victims worry about having to pay their lawyer, but this is why most personal injury attorneys work on contingency. This means they don’t get paid unless they win the case for you. With your settlement reward, you can pay your attorney, the loan, and the fees while still getting the bulk of the money.
You Must Have a Personal Injury
To be eligible for this type of funding, you must have been injured by someone else’s negligent actions. If you have a valid personal injury claim, you should receive a settlement. Without a personal injury, you will not be able to get approved.
The Case Must Be Strong
Your personal injury case should have strong evidence that the other party was negligent and liable for your injuries. If there is a lack of evidence or too much doubt that the other party was liable, then you may not be approved.
Your Claim Must Be Underway
Personal injury lawsuit loans are only for plaintiffs with a personal injury case. Even if you have a case, you have to be at the right point. Before you can apply for pre-settlement funding, you need to work with an attorney who has helped you file a lawsuit and started the investigation process. In other words, you can’t apply for this funding before your attorney has filed any of the paperwork on your behalf.
What to Do Next for Funding?
If you meet the qualifications, you can apply for a lawsuit loan. Follow the application process provided by a trusted personal injury lawsuit loan company and submit it as required.
Once you have submitted a completed application, you’ll need to wait to be approved. Generally, this will take a day or two at the most. At that point, you’ll find out how much you have been approved for and will be able to get your loan. You can visit pinnaclelegalfunding.com to learn more about the process.