If you’re pursuing a lawsuit against a company or individual because of an injury they caused, you may be currently having problems paying for your medical bills and living expenses. If you’re unable to work following the accident, then you may be facing many financial problems at the moment. When such difficulties arise, it may be time to consider pre-settlement funding.
Overview
A pre-settlement funding is a type of financing that puts money in your pocket while your case is still on-going. You can approach a litigation finance company and if approved, you will be given a lump sum that you can use to cover your medical expenses and household bills. This loan is sort of like a cash advance against the money you will receive in your settlement.
A lender will only approve your loan if there’s a significant chance that you will win your case or get a settlement. Also, the amount that will be approved will depend on the estimated settlement proceeds you will receive. The lender will first speak with your lawyer and assess your case to determine whether they should approve your request for funding, and if so, how much they should approve you for.
Benefits of Pre-Settlement Funding
Many people who have availed of this kind of financing know just how beneficial it can be to them and their loved ones. First of all, this is a non-recourse loan which means if you don’t get a settlement or if you lose your case, you are under no obligation to pay back the loan.
Secondly, you can use the money you receive from your loan to cover your medical bills. You can also use it to pay for expenses like rent, mortgage, food, gas, and so on. Having the funding you need as you wait for the outcome of your lawsuit will help you avoid bankruptcy and prevent you from losing your home.
Finally, you don’t have to be compelled to accept out of court settlements. Some people are forced to accept small settlements because they have no other choice. They have bills to pay and mouths to feed, and without money, they really cannot afford to fight it out in court.
Many insurance providers offer out of court settlements that are way below the value of their cases. If you have a solid case, do not settle. If you’re running out of money, then consider this kind of financing so that you will have the opportunity to get the settlement that you deserve.
Speak with your lawyer about the matter so they can discuss with you the pros and cons of pre-settlement funding. This option is not for everyone but if your case has a high possibility of getting a huge financial judgment, it’s something you really should consider. In spite of the high fees, if you can get a huge settlement with the help of this kind of financing, it may be worth it in the end.
