Are you trying to figure out what to do to get the money you need before a settlement? Read this article to learn more about pre-settlement funding.
Approximately 95% of lawsuits never go to trial and instead, end in a settlement.
While this a great statistic for those with pending lawsuits, it can years to settle your case and more than 6 weeks to receive your settlement check. Depending on the loss you have suffered from the incident causing the lawsuit, the time in between filing and settling can cause a strain on your finances.
Fortunately, you can receive your settlement faster with pre-settlement funding. If you have settled out of court or are anticipating a settlement, here is how to get your money before a settlement.
What Is Pre-Settlement Funding?
Pre-settlement funding is a type of advance you can receive on a settlement from a pending lawsuit.
These loans on settlements give you access to your funds without having to wait for the paperwork and processing to be completed.
The term pre-settlement funding covered many financial products, including structured settlements, lawsuits advances, and non-recourse loans.
Pros of Pre-Settlement Funding
There are several benefits to receiving pre-settlement funding.
If you need money right away, receiving the funds early can give you some financial relief. This type of funding is not dependent on your credit score or credit history, making it easier to come by. By getting a settlement advance, you also give yourself time to negotiate a larger settlement.
Cons of Pre-Settlement Funding
While there are many benefits to a lawsuit advance, there are also a few disadvantages.
When you receive your settlement, you will pay back the amount you received with added interest fees and funding fees. The interest can be up to 60%, which can be expensive depending on how long it takes to settle your case. These advances are also not regulated by the federal or state governments, making them risky and controversial.
Am I Eligible for Pre-Settlement Lawsuit Funding?
There are a few requirements you need to meet to be eligible for pre-settlement funding.
You must have a pending lawsuit and have hired an attorney on contingency. Your attorney must also approve your proposal for pre-settlement funding. Finally, your application will be approved or denied depending on the likelihood of you winning your case.
What If I Lose My Case?
You may be wondering what happens if you lose your case and do not receive a settlement.
Lawsuit advances are not a loan and you do not have to repay the amount you received. With this type of non-recourse funding, you are not liable for the debt.
Pre-Settlement Funding: Everything You Need to Know
Pre-settlement funding is a viable option for those who need funds from a settlement immediately.
It’s important to know the process of getting this type of loan, as well as the pros and cons. If you are eligible for a pre-settlement loan and it is a good fit, finding a lender is as easy as getting a recommendation or performing a quick Google search. Taking advantage of a settlement advance is a great solution if you need immediate financial help.
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