California Legal Funding

If you were injured in an accident caused by another person’s negligence, you might be eligible for fair financial compensation. However, there are several legal battles that you may need to go through before you can recover damages. In addition, while waiting for a settlement, you may find yourself under financial pressure. 

Legal funding is an option you should consider for covering your medical bills, loss of wages, and more. High Rise Financial offers pre-settlement legal funding in California to personal injury victims and their families throughout the state. During this difficult period, our pre-settlement funding can help you meet your basic needs, such as food, insurance bills, and rent.

Requirements for Pre-Settlement Funding in California

Our legal funding allows accident victims with pending personal injury lawsuits to get cash advances before their injury settlement. Pre-settlement legal funding eliminates the need to apply for a lawsuit loan and fall into debt. Instead, you can receive a portion of your settlement without worrying about paying high-interest rates.

To apply for legal funding in California, you must have a personal injury claim. Also, you must have sustained your injuries from a traffic collision. You are likewise required to be a California resident or have a pending lawsuit in the state.

Your attorney must also agree to receive third-party funding. If they refuse, we won’t be able to fund your case. However, if they agree to third-party funding, you could receive cash in your account in as little as 24 hours.

California Personal Injury Statute of Limitations

According to the California Code of Civil Procedure (CCP) § 335.1, an action for personal injury must be filed within two years from the date of the accident. Plaintiffs who file a case after the statute of limitations has expired have little chance of winning their case, even if they have suffered injuries through no fault of their own.

But when injuries don’t show up right after the crash, it can be a different story. Injuries that may take a while to present themselves include neck, back, and head pain. 

For these instances, California has the delayed discovery rule within its statute of limitations law. So, if you are unaware of an injury and suddenly discover it, you will have one year from the day you discover the injury to file the lawsuit. 

Let’s say you got into a car accident on June 12th of, 2020 but didn’t sustain any injuries until a few months later, on August 5th. From the day you discovered your injury, August 5th, you would have had until August 5th of 2021 to file your lawsuit. Your lawyer can discuss this with you and determine if the delayed discovery rule applies to your case.

Fault Laws in California

California is an “at-fault” state, which means that the driver who causes the accident is responsible for paying for the other driver’s damages. In addition, California also has a “pure comparative negligence” statute. Under the system, the court allows accident victims to recover compensation for their injuries, even if they are 99% at fault for the incident. 

However, the total compensation you may recover will be reduced by their percentage of fault. For example, to illustrate the statute, if you were in a car accident and your damages equaled $25,000, but you were 30% responsible for it, you would only be able to recover $17,500 as your settlement. 

So, keep in mind that the degree to which you’re potentially at fault in your accident will be considered when you apply for legal funding.

Why Should You Use Legal Funding?

Legal funding can help you cover your living expenses as you wait for your settlement. In many personal injury cases where a plaintiff has a strong claim, the defendant will try to drag out the settlement process. This can force the plaintiff to settle for less than they deserve simply due to the financial pressures they can face as they wait for money from the settlement.

With pre-settlement legal funding, you can get cash for your settlement now without having to wait. Legal funding can help you pay for any expenses you might have after your accident, such as groceries or personal expenses. With pre-settlement legal funding, you can better resist pressure tactics from the defense to fight for the full value of your settlement. 

With our risk-free settlement loans, you can get the legal funding you need without applying for a traditional lawsuit loan in California. Unlike other loans, you won’t need to repay the pre-settlement funding if you lose your lawsuit. 

How to Spend Your Pre-Settlement Funding

Once you receive your pre-settlement funding, it’s yours to spend however you see fit. There are no restrictions on how you may use it. You can use our pre-settlement funding to do any of the following and more:

• Pay bills, rent, and debts
• Settle monthly expenses and utilities
• Buy food and groceries
• Pay for healthcare
• Make car payments

Do Lawsuit Loans in California Charge Interest?

Unlike traditional lawsuit loans, we do not charge interest of any kind on pre-settlement funds. Instead, we charge a one-time, flat-rate fee that does not change over time. When you file your paperwork with your lawyer, you’ll be able to see the fee amount up-front, so you won’t be surprised if you have to repay after you win your lawsuit.

Interest rates are why people often tend to shy away from getting a personal loan or a traditional lawsuit loan. But with California legal funding, you don’t have to worry about compounded interest piling up year by year. We take pride in being able to offer a settlement advance to help people stay afloat without overwhelming them financially.

Are Lawsuit Loans Taxable in California?

Your pre-settlement funds are not taxable if you use them for the items mentioned above. Your legal funding money isn’t taxed because it’s an estimated advance on your settlement if you win your case. Since the money isn’t considered a form of income or wages, it’s non-taxable.

However, if you choose to use your legal funding to make investments, you will, according to the California capital gains tax law. Keep in mind that California law does not have different tax rates for short-term and long-term capital gains, so they are taxed the same. 

Making cash investments with your pre-settlement funds is an option, but you will be subject to paying taxes when your financial situation is less than optimal.

How does Legal Funding Compare to a Lawsuit Loan?

Legal funding offers many advantages over a traditional lawsuit loan and has a few downsides. A conventional lawsuit loan is a type of personal loan and has all the drawbacks of one, including the following:

• A required credit check
• The application can be long
• Getting the money can take time
• The loan will show up on your credit report
• Your personal assets will need to be verified
• You’ll have to repay the loan with interest even if you lose your case

On the other hand, legal funding offers several advantages over a traditional loan:

• No credit check is necessary
• Applying is easy and takes just a few minutes
• You can have money in your account within 24 hours
• Your legal funding won’t show up on a credit report
• There’s no need to verify your personal assets
• You won’t have to repay anything if you lose your case

The IRS classifies a lawsuit loan as a recourse debt, meaning your personal assets could be at stake when it comes time for repayment. On the other hand, legal funding is considered a form of non-recourse debt, meaning you have no obligation to repay it. Your settlement will be used as collateral for the legal funding, which means if you lose your case, you don’t have to repay it.

How Pre-Settlement Legal Funding Works

Through our legal funding in California, you can get a cash advance in four easy steps:

• Notify us about your interest in getting a settlement loan
• Our settlement loan experts will discuss your case with your attorney
• You and your attorney will sign an agreement
• Receive your cash advance once we approve your application for a pre-settlement loan

Applying for our pre-settlement loans is quick and stress-free with our process. There are no credit checks or income checks, and there is no obligation to repay if you lose your case. Read our frequently asked questions to learn more about legal funding.

Turn to High Rise Financial for Your Settlement Loans in California

If you or a loved one is searching for settlement funding in California, contact High Rise Financial to schedule a consultation. We can offer you risk-free legal funding or pre-settlement funding for your personal injury claims without applying for traditional lawsuit loans.

Our trusted lawsuit funding experts will be available to speak with you and help you understand your pre-settlement legal funding options. In addition, we will work together with your legal counsel to determine your prospects of winning the injury lawsuit and how much compensation you’re likely to receive. You have nothing to lose and everything to gain by applying now.