Pre-Settlement Lawsuit Loan: Cash Advances for Plaintiffs
A pre settlement lawsuit loan—also known as legal funding—allows injured parties awaiting an anticipated personal injury jury award or settlement to cover bills, medical expenses or lost wages. Personal injury lawsuits can be lengthy, and while your case is pending you may be in need of funds to help bridge the gap from now until you receive damages from the person or entity responsible for your injuries.
A pre settlement lawsuit loan helps injured plaintiffs get by while cases are pending
While this type of legal funding is often referred to as a “loan,” it is not a loan in the traditional sense, since you will only repay the money if you receive compensation through a jury award or a settlement. A pre settlement lawsuit loan keeps injured parties from having to rely on credit cards or bank loans for cash advances—money that has to be repaid regardless of the outcome of the pending case.
The reason legal funding organizations are willing to assume the risk associated with financing a pre settlement lawsuit loan mirrors the rationale of personal injury lawyers who provide legal services on a contingency fee basis. Most personal injury lawyers will not accept a case unless he or she feels extremely confident that the client will recover fair and adequate compensation for the injuries incurred. Legal funding services rely on the expertise of these personal injury lawyers by requiring loan clients to have retained an attorney who works on a contingency basis.
How do you qualify for pre-settlement lawsuit loan?
After clients who seek legal funding demonstrate that a personal injury attorney has accepted their case on a contingency basis, pre-settlement lenders will likely contact that lawyer to make sure he or she is willing to repay the lender out of any compensation check received, before the client is paid the remainder. The lender will also want to find out whether the defendant in your case is financially solvent enough to pay a negotiated settlement or jury verdict award, and whether your personal injury is easily proven. There are certain types of personal injuries for which lenders more readily agree to issue legal funding, including birth injuries, commercial litigation, wrongful deaths, medical malpractice, wrongful terminations, construction accidents, defective drugs, products liability, car accidents, negligence, slip and fall accidents, and others.
Benefits of legal funding loans
There are numerous advantages to receiving a pre settlement lawsuit loan, as opposed to other funding sources. First, the application process is simple and quick, with no credit checks, co-signers or employment verification needed, and there are no upfront costs associated with applying. There are also no restrictions on how you can spend your cash advance, and the amount of money you can receive depends on the facts of your individual personal injury case, not on your ability to repay the loan if you do not win your case.
Ultimately, legal funding arrangements are most beneficial to an injured party because alleviating immediate financial stresses removes the incentive to accept a quick but inadequate or unfair settlement. When you are not in danger of losing your home or car, suffering ruined credit, or not being able to receive necessary medical treatment, it will be easier to work with your attorney in negotiating a settlement with the responsible party that takes into account all of your damages. In addition to current and future economic losses, such as lost wages and medical bills, damages may include noneconomic losses, like pain and suffering and loss of enjoyment in life.
If the responsible party is unwilling to negotiate a fair settlement, a pre settlement lawsuit loan can enable you to take your case through a lengthy trial process – and pay your bills in the meantime – so that an impartial jury can consider your claim and award fair compensation.
Contact LawStreet Capital to see if a pre settlement lawsuit loan is right for you
To find out whether you could benefit from our no-risk legal funding, call LawStreet Capital today, toll-free, at 800-345-8500. We offer a free and no-obligation application, and our cash advances always have the industry’s lowest interest rates and no hidden fees. We will do all we can to make sure your application is approved within 24 hours, and can overnight your funds as soon as the approval process is complete.