pre settlement funding

Pre-settlement funding is a form of legal funding that provides cash to a plaintiff involved in a personal injury lawsuit or a wrongful death lawsuit. It’s like an advance on money the plaintiff expects to receive in the settlement.

Personal injury lawsuits and wrongful death lawsuits often take months to resolve. And this usually results in financial stress placed upon the plaintiff. This is especially true if the plaintiff has injuries that prevent them from working.

If you’re involved in a personal injury case or wrongful death case, pre-settlement funding might help. Here’s some helpful information about this type of funding.

How Does the Pre-Settlement Funding Process Work?

You can apply for funding if you’re involved in a personal injury case and have already hired an attorney. You can also apply if you’re involved in a wrongful death lawsuit on someone else’s behalf.

Funding is based on the expected outcome of your lawsuit. Your credit score and income history have no bearing on this type of funding. It’s based solely on how much you’re expected to receive from the settlement.

You’ll need to provide contact information for yourself and your lawyer. The pre-settlement funding company like Settle4Cash and Oasis Financial will then contact your lawyer for details of your case.

The funding you receive depends on how much you expect from the settlement. The company offering the funding will deny your request if they think you’ll lose your lawsuit. Your state can also have an impact on your ability to get pre-settlement funds.

For example, Arkansas places a 17% annual interest rate cap on pre-settlement funding. The cap on interest rates prevents some pre-settlement funding companies from considering Arkansas plaintiffs.

If your state allows funding, the following things will determine how much you can receive:

– The pain and suffering caused by the injury or wrongful death.

– The severity of your injuries – such as loss of a limb or being paralyzed.

– Lost wages from an inability to work.

– Current and future medical expenses caused by the injury.

– Property damage.

Keep in mind not all cases are the same. And companies that provide pre-settlement funding have their guidelines.

In general, companies that provide this funding will look at cases similar to yours. They’ll compare your situation to other cases to see how the settlements or jury awards turned out. They’ll then use this information to determine how much they can offer you.

The company will then present you and your attorney with an offer. You’ll receive the funds only if you and your attorney agree to the offer.

Repay the Funds if You Win the Lawsuit

You’ll have to repay the pre-settlement funds if you win the lawsuit. You also may or may not have to pay interest – it depends on the company that provided the funds.

Some companies charge compound interest or variable interest on the funds. This can result in a large bill if your case takes months or years to settle.

Other companies don’t charge interest. Instead, they might charge a one-time, flat-rate fee based on the amount of money you receive. And when you win the lawsuit, you repay the same amount of funding you received.

Your lawyer will repay the company on your behalf out of the settlement funds. The lawyer will also deduct their fees from the settlement. You’ll then receive the remainder of the settlement.

Losing the Lawsuit

You don’t have to repay the funds if you lose the lawsuit. The settlement amount acts as collateral for the funds you receive. If you lose the case, that means the collateral is gone.

Is Pre-Settlement Funding Right for You?

Are you having financial problems because of a personal injury? Are you struggling to pay bills associated with a wrongful death lawsuit? If so, pre-settlement funds can help.

Discuss this matter with your attorney to determine if you’re a candidate for these funds.