Pre-settlement funding is a way to get money before you receive a settlement from a lawsuit. The money will help cover your expenses until you settle, and then you pay it back out of your settlement. It’s not a lawsuit loan, so there is typically no credit check or income or job verification. Most re-settlement funding companies will insist on talking to your lawyer, so you must have representation. Your attorney is the best person to determine if you will get a settlement and what amount you are likely to receive.
Why Do People Need Pre-Settlement Funding?
If you are in an accident and can’t work, your bills don’t stop. Your rent or mortgage is still due and so are your utilities. If you’re injured, the last thing you need is additional stress worrying about your bills. You need to concentrate on your health, which is hard if you’re worrying about your electric being shut off. In cases of severe injuries, a spouse may have to take off work temporarily to provide care in the home.
Can Pre-Settlement Funding Help Me Get a Better Settlement?
Indirectly, yes. If you’re worried about not being able to pay your mortgage and you’re afraid you’ll lose your home, you’ll want to settle quickly. It’s only natural. Unfortunately, the attorneys for the party you are suing will know this and offer you less than you deserve. Desperation can push you into accepting a low offer. With a pre settlement loan, you can afford to wait for your attorney to get you the settlement you deserve.
What Does Pre-Settlement Funding Cost?
It varies among the different companies. Some charge a flat fee while others charge interest. There may also be an application fee. It’s important that a person understand the total cost before accepting any funding. Many, but not all, companies offering pre-settlement funding will not ask the borrower to repay the advance if there is no settlement. They don’t advance money unless without reviewing the case with the attorney for the injured party first to ensure a settlement is highly probable.
Can Pre-Settlement Funding Pay for Medical Care?
Yes, there are no restrictions regarding using the funds to pay for surgeries, rehabilitation or necessary adaptive medical equipment. Even if the injured party has medical insurance, they may have substantial out-of-pocket costs. It’s essential to document these expenses, as the attorney will add them to the settlement amount requested.
What Can a Person Use Pre-Settlement Funding For?
Besides medical care, the plaintiff can use the funding for all daily living expenses. This includes housing costs, utilities, food and other common household costs. A person could also use it to replace their vehicle if it was damaged in an accident and there is no insurance to cover the cost. The money is meant to cover lost income and make a person whole again, not to take an unplanned vacation to Disney Land. This reckless spending could ultimately hurt a person’s case.
What Types of Cases Qualify for Pre-Settlement Funding?
The most common types of cases pre-settlement companies work with are personal injury lawsuits. These can include:
- Transportation accidents
- Pedestrian accidents
- Wrongful deaths
- Medical malpractice
- Asbestos exposure claims
- Police brutality claims
There are also other types of lawsuits that can result in a settlement.
If you’re interested in pre-settlement funding, your attorney is an excellent source of information. Have them review the terms of companies you are considering. Choose one that offers the most reasonable fees with no hidden costs. It’s a decision that can make your waiting for your case to run through the courts as comfortable as possible.