Pre-settlement funding can be a massive difference-maker in your life when taking on a personal injury lawsuit. Read here to learn more about this funding.
Finances are often the trickiest part of pursuing a lawsuit after a personal injury you weren’t responsible for. When you hear how much attorneys and court fees cost, you may want to focus your budget exclusively on getting healthy. However, the system works this way to prevent people from taking legal action.
Pre-settlement funding exists to put the choice back in your hands. Read on to learn what you need to know about pre-settlement funding.
Pre-Settlement Funding: Explained
You can think of pre-settlement funding as an advance on your prospective settlement. Once you and your lawyer have begun the lawsuit process, you can apply to have a company issue you funds from your eventual settlement account. It’s a little like pulling money from the future.
Is Pre-Settlement Funding a Loan?
If pre-settlement funding were a loan, that would mean you’d need to repay the funding company whether you won or lost the case. That could entail you paying a company tens of thousands of dollars you don’t have if you lost—which is why pre-settlement loans are non-recourse. That’s a fancy way of saying, “You don’t pay if you don’t win.”
You read that correctly. You have to repay the pre-settlement company only if you win your settlement!
How Do You Apply?
There are a few things to consider before applying for litigation funding, but the most important factor is having a strong case. It’s easy enough to find a reputable lawsuit funding company, but you should set aside time to review your case with your lawyer. The stronger your case, the more likely they are to approve you.
Now that you understand what you need to know about pre-settlement funding, talk with your attorney to discuss whether it’s right for you. However, you don’t need your attorney’s permission to pursue pre-settlement funding even if they don’t think you need it. If your lawyer tells you not to pursue pre-settlement funding, make sure they have a good reason that they can succinctly explain.