If you are the plaintiff in a lawsuit, there is a good chance that you’re seeking monetary compensation. Yet even if you’re confident you will receive the settlement money you are going after, the time before your money arrives can stress your finances. In the meantime, you have bills to pay and a life to lead.
This is where lawsuit funding can be beneficial to you. No matter the type of personal injury you’ve experienced, if your case is strong enough, you can obtain pre-settlement financing. Nonetheless, there are red flags and other issues you need to know before applying for your legal funding.
Tips to Know Before You Apply for Pre-Settlement Funding
Applying for legal funding can be challenging if you don’t know what you’re doing. As a personal injury accident victim and lawsuit plaintiff, you have enough to worry about without needing to be concerned about predatory lenders charging you upwards of 200% compound interest.
That’s why High Rise Financial has put together tips you should know before filling out a legal funding application:
To apply for free, call (877) 735-0016
Ask What They Charge Upfront
Many companies are less forthright when explaining how much they charge or their legal funding. Because of this, you should always ask what their interest rate is. If they are hiding their interest rates or avoid talking about them, they are likely to be higher.
Therefore, when you call to find out about their services before you answer any of their questions ask what they charge. You may want to avoid that company if they dodge the question or fail to give you a straight answer.
Make Sure Your Attorney Knows You’re Applying for Funding
Make sure your attorney knows you’re applying for pre-settlement funding sooner rather than later. Your law firm will likely respond to your funding company faster if your lawyer knows they’ll be calling.
This will also give your attorney a heads up on specific documents your funding company may request. Keep in mind that the entire funding process happens between your lawyer’s office and the funding company. By keeping both parties synced up you’ll avoid snags and receive your money sooner.
Avoid Lawsuit Loan Brokers
Applying with a lawsuit loan broker is typically slow and expensive, plus it may irritate your attorney. This is because they usually send your lawsuit case information to several companies at once. These unnecessary calls often happen simultaneously unnecessarily drawing your attorney’s attention away from fighting for your case.
In addition, lawsuit loan brokers often tack on an additional 15 to 20% to the cost of receiving your lawsuit funds. That’s why you should only deal directly with a pre-settlement financing company.
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Make Sure You Find the Right Legal Funding Company for You
Ask your legal team if they regularly work with or have heard of a pre-settlement funding company.
Avoid the risk of signing on with a new funding company if your attorney has already established a professional working relationship with another one. Nevertheless, you should stay alert. Just because your law firm has a history with the funding company doesn’t mean it will be right for your situation.
Prepare Necessary Documents Ahead of Time
Your legal financing company will start processing your paperwork as soon as your documents are sent to their office. However, law firms are usually busy and may not get to your paperwork right away.
To obtain speedier service, prepare your case documents ahead of time and send them when requested. If you are hoping to get the process moving sooner, ensure you have the following information before you apply for pre-settlement funding:
- Your filed complaint
- Any vital medical reports
- Your police report
- Your demand letter
There may be others; however, these are often the documents a legal financing company might ask from your attorney. Having them ready to go in advance will let you bypass this step.
Know Your Case Inside and Out Before You Apply for Legal Funding
If you can answer most of the questions the legal funding company will ask about your case, the fewer questions they will have for your lawyer. That’s why before applying you should thoroughly know your claim like the back of your hand.
To expedite the process, look over your case’s general facts and be ready to answer anything the funding company asks. Every question you can answer is one less question your lawyer will have to answer when he could be fighting for your compensation.
Know the Estimated Value of Your Claim Before You Apply
The pre-settlement funding you will qualify for usually equals 10 to 20% of your lawsuit’s compensation value. Talk to your lawyer and find out how much your case is worth before you apply. This will give you a realistic figure when you apply for your pre-settlement financing.
Additionally, knowing this amount will also equip you to better manage your expenses as your case moves forward.
Apply Only for the Amount You Will Need
Once you locate a reputable legal funding company with reasonable rates, request an amount that will give you enough to pay the most crucial bills. Though you can use your money and spend it how you’d like, lawsuit financing can be expensive; therefore, we recommend that you use your money for living expenses and other essentials.
You can always apply for more pre-settlement financing if your compensation amount increases or you didn’t take out as much as you could have the first time you applied.
Is Legal Funding the Right Move for You?
Applying for legal funding should only be considered if you are injured and you truly can’t wait for your case to settle. If you are financially stable, you should patiently wait for your verdict or settlement.
Unlike other companies, High Rise Financial is completely transparent about our legal funding process. Because of this, we’ve been able to help hundreds of our clients secure pre-settlement financing to pay their bills. To find out if legal funding is right for you, contact our team today.