If you’ve been hurt in a motor vehicle accident, injuries, medical expenses, bills and other family responsibilities may be weighing on you. That stress can get worse when medical bills begin to pile up.
Panic and uncertainty about missed days at work, costly medications and physical therapy, and all of the other aspects of dealing with recovery, can become overwhelming. That can sometimes result in a person involved in an accident to avoid hiring a personal injury attorney. However, a lawyer can often be the most important decision you make to receive the compensation you deserve from the insurance companies on your personal injury claim.
This is where pre-settlement funding can help you get the money you need while your lawsuit is being filed and processed. Not every law firm offers support for pre-settlement funding, so if this is important to you, make sure your search for a car accident attorney includes this service.
What is Pre-Settlement Funding?
Sometimes referred to as a lawsuit cash advance, specialty lenders can offer funds to help injured victims pay for medical and living expenses during the legal process. Personal injury lawsuits can take time to reach a final settlement or judgment. In the meantime, a pre-settlement advance can help you with your expenses until then.
This funding is usually available when substantial evidence that you sustained severe injuries is found. A car accident attorney may recommend pre-settlement funding to help while the case moves toward a settlement or an awarded amount. If the case does not settle in your favor, typically you will not owe anything on the pre-settlement funding. If you win or settle your case favorably, the company that provided you with pre-settlement funding will require re-payment and interest on the advanced amounts.
What Can Pre-Settlement Funding Be Used For?
While some expenses may be related to the accident itself, the accident may also affect your ability to make regular bill payments. It’s easy to fall behind on your payments when you sustain a serious injury, are hit in a car accident, or suffer from a dog attack. You can use pre-settlement funding to pay your bills and expenses just as you would your normal paycheck. You can use that money for your medical bills, mortgage or rent, or even your groceries.
The main idea behind the lawsuit cash advance is to help provide financial support in your time of need so you can continue to live your life while the lawsuit against the insurance company is in progress.
Benefits of Settlement Loans
There are key benefits to submitting your application for these loans. First, you don’t need to worry about having a good credit score to receive the loan since the primary eligibility criteria is based on the strength of your claim. Secondly, you’ll be able to pay for your living expenses so that you don’t fall behind on your bills.
In addition, you can usually get this loan quickly, giving you more time to investigate the full extent of your damages and negotiate your insurance claim. Sadly, insurance companies delay settlement in order to tempt you to take an offer that does not fully compensate you. When you have funds in place to help you during this period, you are in a better position to make an informed decision about a settlement that fairly compensates you for your damages.
Eligibility Requirements for Pre-Settlement Funding
Pre-settlement funding is one of several options available to accident victims. Third-party consumer litigation financing, non-recourse loans, structured settlement loans, and alternative litigation financing are all ways that you can get financial assistance.
It’s important to know the pros and cons associated with each type of loan before making a final decision. Your personal injury lawyer may recommend a pre-settlement funding company to best suit your needs.
The company providing the pre-settlement funding will have eligibility requirements. For most claims to qualify for funding, the claim needs to fall under the umbrella of one of the following types of lawsuits: wrongful death, personal injury, product liability, premises liability, or medical malpractice.
Typically, the company will look at the merits of your case, weigh the chances that you’ll win the case, and estimate how much you might be able to receive based on your claim. Those details are used to qualify you for a lawsuit cash advance. Keep in mind that these companies do charge interest and fees in addition to the loan amount with the expectations that the loan will be paid back when you receive a final settlement, or win your case.
How to Get Pre-Settlement Funding
Not all pre-settlement funding offers are created equal. If you qualify for a lawsuit cash advance from more than one company, it can be beneficial to compare the different offers to select the one that works best for you.
Dunnion Law has worked with several companies and can advise you on how pre-settlement funding works. We work hard to help get you the help you need. If pre-settlement funding or a lawsuit loan is needed after your accident injury, we know this service can be key to helping you recover from a life-changing accident and getting the help you need to while your case is in progress.
In the meantime, if your doctor approves it, go back to work to stay ahead of your bills, and keep up with your lawsuit. It’s easy to become overwhelmed with everything. Trusting your case to the right personal injury lawyer can have a big impact on all these details. Dunnion Law will handle the legal aspects of preparing and filing your case, but we can also assist you with other resources as necessary, such as pre-settlement funding recommendations.
If you have a personal injury or car accident case, please call today to learn more about our legal services from our experienced attorneys.