Pre-settlement funding is a process in which a plaintiff who has been injured and is involved in a personal injury lawsuit may qualify to get an advance (usually about 10%) against a pending or expected settlement. Personal injury cases are widely known for taking months to settle; in the meantime, those who are the victims often suffer financially due to medical costs, the inability to work, and the fact that their lives have been turned upside down.
Litigation financing companies make it possible for individuals who qualify to get a portion of their expected settlement almost immediately. To qualify for pre-settlement funding, you must have a strong lawsuit. That is basically the only requirement, as it makes no difference if you have bad credit or are not currently employed. In order to learn if you qualify, your lawyer will provide the litigation funding company with information regarding the accident or situation that left you injured, and medical reports and other information regarding the seriousness of the injuries you sustained.
With pre-settlement funding you can have an advance on your pending claim usually within 24 hours if you qualify. This money may be used to pay medical and household bills, to buy groceries, even to pay attorney fees. Essentially, you can live without financial stress and pay the bills while waiting for your lawsuit to settle. This money can also help your attorney have the financial resources he or she needs to build a strong, effective case on your behalf.
Do you repay the litigation funding company, and how does it work? Yes, you will repay the funding company, but only when your case has been won and you have access to your money. There are no monthly payments or upfront costs to put you further in debt. You only repay the money when you actually have it. Mayfields’ Pre-settlement funding is a process that is no-recourse, which simply means that if you lose your lawsuit, you do not repay the advance or any associated fees and/or interest.
Your attorney can help determine if pre-settlement funding may be a good option for you. Personal injury lawyers are very familiar with litigation funding and how it works, so you may want to discuss the process with your attorney. There is also plenty of information available online to help you better understand how it works. This type of loan can help you avoid financial distress, and possibly even bankruptcy by giving you the money you need immediately.