Are you pursuing a lawsuit against an individual or a corporation that caused you an injury? If so, you may be drowning in the high costs of medical bills and legal expenses, not to mention the regular household expenses that go unpaid if you're unable to work. What can you do to make this process less expensive for you and your family? Is there any way to find funding that can help you through this time? One avenue to consider is pre-settlement funding. This financing option can be a lifesaver during the litigation process.
What is Pre-Settlement Funding?
When you apply for pre-settlement funding from a litigation finance company, you may be eligible to receive a lump sum payment that you can use to pay for your household bills and your medical costs. Before you can get the funding, though, the finance company will examine your case and certain paperwork from your attorney. If the company judges that your case has the potential to win a judgment from the court, you can receive your money in a few days.
Benefits of Using Pre-Settlement Funding
Pre-settlement funding offers several advantages. First of all, you don't have to pay any fees to get the money. Instead, most litigation finance companies operate on a "No Cost Unless You Win" basis, which means that you won't have to pay anything back if you don't win your case.
Another benefit of getting pre-settlement funding is that you can use your lump sum for any of your pressing expenses such as rent/mortgage, food, and bills. If your injury prevents you from working, you may be falling behind on these necessities, which could make pre-settlement funding an ideal provision for you.
A note of warning: Many insurance companies try to pressure litigants into accepting an out-of-court settlement that is far below the value of their actual cases. Since you may be in need of money at the time, you could be tempted to accept the offer without weighing it against the possible value of your case. Instead of accepting the offer blindly, it's wise to consult with your lawyer about the pros and cons of taking the insurance company up on its settlement.
So, should you consider pre-settlement funding? The answer depends largely on the financial situation you're in and the possibility that your case will result in a financial judgment. If your case has merit, you will likely benefit from pre-settlement funding.