You’ve seen those sponsored commercials all over television during afternoon television. Been in an accident and need cash now? Well this is a bit different and more fiscally sophisticated so LawFuel readers can consider the nature of pre-settlement funding and what it can achieve for those facing personal injury lawsuits.
Pre-settlement funding is essentially a cash advance that can be accessed by someone who has a personal injury lawsuit pending. If you or your family were involved in a personal injury or wrongful death accident caused by another individual, negligence by a company, or a defective product and were injured than you most likely would qualify for a pre-settlement pay out.
If you are a plaintiff who is involved in litigation then there is the probability that a pre settlement loan will be available, including cases such as –
- Personal injury cases
- Medical malpractice lawsuits
- Employment or labor law disputes and litigation
Legal representation is required and will in any event be the best way forward for significant benefits arising from the litigation.
If you have legal representation and need cash right away, the right solution could be a pre-settlement funding advance. Companies like JG Wentworth & 500 Cash Out are the leaders in this industry behind other names you may see on television commercials such as Oasis Financial & Law Cash.
The majority of applicants need cash fast to take care daily living expenses, a car payment, a mortgage or rent payment or emergency needs resulting from the accident and as you can imagine especially here in the bay area cases take a very long time to settle with the courts being so backed up due to COVID-19 shutdowns.
Unfortunately, the legal process works slowly and on average, a civil lawsuit takes roughly 18 months to conclude in non-covid times. So add a few more months or years onto that time frame and the delays and hardship that any litigant may encounter can become extremely distressing and difficult.
The insurance company of the defendant may be liable to compensate for lost wages, your medical expenses and pain and suffering; however, they have no incentive to quickly pay you and every incentive to deny, delay and defend against your claim. The longer the company takes to compensate you, the more time their premiums have to collect investment income and the pressure placed on you to settle for less is increased. Pre-settlement funding can assist you in leveling the playing field against the company by proving the financial resources needed now so that you don’t have to settle early because you’re cash starved.
Weigh The True Cost of a Pre Settlement Loan
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- 2 Pre Settlement Loans are Not ‘Ordinary’ Loans
- 3 Pre Settlement Loan Considerations
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When making a crucial decision when you’re tight on cash is tough, it is vital for you to think about all the facts and weigh the pros and cons of settling a case because you need money versus waiting and getting more money.
The considerations necessary for a pre-settlement loan may arise from the time your lawyer requires to prepare your case and of course a defendant will frequently – and often strategically – attempt to drag out matters, refuse a prompt (or even any) settlement and ensure negotiations drag on seemingly endlessly. It places financial pressure upon you.
A loan in these circumstances becomes an important consideration.
After considering both sides, you can consider the benefits of obtaining a pre settlement loan from a pre settlement firm like 500 Cash Out or one of the other reputable pre-settlement loan providers who will provide an unbiased decision on whether accessing a pre-settlement advance makes financial sense for you.
Pre Settlement Loans are Not ‘Ordinary’ Loans
A lawsuit loan is not the same as your standard bank loan requiring monthly repayments and payment schedules. There is no requirement for repayment until after the lawsuit is won.k
And if your lawsuit is lost you do not need to repay it, which is why the lawsuit is looked at carefully by a lawyer to determine what the likely success chance are.
If the lawsuit is successful then once the settlement funds are paid then legal fees and the lawsuit loan repayment amount will be deducted from your settlement amount. Your lawyer will repay your lawsuit loan lender and provide you with the remainder of your settlement.
Pre Settlement Loan Considerations
There are a number of factors to think about when considering the taking of a pre settlement loan, including –
• The reason for the advance and if it is necessary, which will involve a consideration of your own requirements as well as the nature of the lawsuit you are dealing with.
• The amount of advance wanted as opposed to the amount really needed.
• How much will have to be repaid based on the duration of the case?
• Can the funds needed be obtained from another source at a lower rate? For example, can you get the funds by refinancing a home mortgage? From a bank loan? A loan from a family member?
• What is the current worth of the case and what will be its worth in a year or longer?
Process of Getting a Lawsuit Loan Is Easy But Your Settlement May Not Be
After you’ve retained a lawyer and gone through the long drawn out lawsuit process that can take years think about this. Getting a lawsuit loan is a fairly easy process but settling your case can take years if both sides are stubborn. Lawsuits can drag on for years and with appeals it can be a long time till you get your money. A good defense attorney will know this and drag the case on and hope that you don’t wizen up to take out a lawsuit loan which only hurts the defendant and makes the plaintiff stronger in litigation.