What Is Pre-Settlement Funding? A Brief Guide
Lawsuits are time-consuming, expensive, and often frustrating. Getting your day in court can take several months, years, or more.
If you have experienced a loss or injury, you may not have time to wait. You need funds immediately to cover medical bills, utilities, mortgage payments, and more.
For those in this situation, it may be a good idea to look into pre-settlement funding. Keep reading to learn more about this and why it may be a smart and viable option.
Pre-Settlement Funding Explained
Pre-settlement funding occurs when a company offers you money upfront. The cost is a certain percentage of the settlement you eventually receive.
Once your case is settled, regardless of if it is a personal injury case or a case that involves environmental and toxic tort litigation, the company receives its payment upfront.
If you have an injury that makes it impossible for you to work, you won’t have a consistent paycheck to cover your bills. This may make it impossible to keep things current, resulting in serious losses and other issues.
Pre-settlement funding will help you avoid having to go into serious debt.
How Much Will You Receive?
The amount you are eligible to receive is dependent on the total estimated value of your case. It is a good idea to find a company that is well known and has a reputation for providing this funding as needed.
What if You Need More Cash Later?
Based on the details of the lawsuit, it may be possible to get more than one advance. This is all dependent on your situation, your case, and the company you use for the pre-settlement funding.
How Soon Can You Receive the Funds?
If you need to pay for groceries, rent, and other bills, each day counts. Most of the lending companies understand this, which is why they offer to fund quickly.
In some cases, you can receive the funds in as little as 48 hours, but this is different for each person.
If you decide to accept the offer made, your lawyer may have to provide more information for the company to help finance the advance you are given. Once final approval is given, you will likely get your money in no more than three business days.
While each claim is unique, the company will be working to help you get the funding needed as quickly as possible.
Getting the Money You Need for Your Lawsuit
Understanding how pre-settlement funding works will help you decide if this is something that you should consider. Keep in mind, though, that you need to find a reputable company for assistance if you choose this.
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