Are There Any Regulations on Pre-Settlement Funding Companies in Nevada?

A personal injury in Nevada can impact you physically, emotionally, and even financially. Suing the negligent party can be beneficial, but you may have to wait months or years for your settlement. During this waiting period, many plaintiffs sink deeper into debt and financial hardships.

At High Rise Financial, we believe that you deserve stability while pursuing justice. Our lawsuit funding provides access to cash before your case is resolved.

As a plaintiff, it’s important to know what your state says about pre-settlement funding before applying. In this guide, we’ll break down how legal funding is handled in Nevada to help you make an informed decision.

What Is Pre-Settlement Funding?

Pre-settlement funding, or lawsuit funding, is a form of financial assistance available to plaintiffs with ongoing cases. If you have an active lawsuit against an at-fault party in Nevada, you may be eligible for upfront funding.

Lawsuit funding is not a traditional loan. It is provided on a non-recourse basis, meaning you’ll repay it only if your case is successful. If you lose and do not receive compensation, you’re not required to repay the money. In Nevada, you can use pre-settlement funding to cover your expenses while waiting for your compensation.

Understanding Lawsuit Funding Regulations in Nevada 

Nevada has created clear, consumer-friendly guidelines that aim to keep pre-settlement funding fair and transparent.

• Litigation funding is considered a non-recourse loan. Nevada law classifies pre-settlement funding as a non-recourse transaction rather than a loan. Simply put, you do not have to repay if there is no recovery. Generally, legal funding repayment is only required if you receive compensation through a settlement.
• Pre-settlement funding limits. The amount of lawsuit funding you can obtain in Nevada should not exceed the $500,000 limit.
• Funding repayment limits. Nevada law also regulates the repayment amount and structure: 
  • The funding company must specify the exact amount owed at different time intervals after funding. This way, the plaintiff knows how much they’ll repay if their lawsuit is resolved within 6 months, a year, 2 years, etc.
  • The funding company cannot charge more than 40% of the funded amount per year. For example, if you receive $10,000 in lawsuit funding, the maximum repayment after a year would be $14,000.
  • The repayment cannot be structured as a percentage of the settlement. This ensures that the amount repaid is proportionate to the amount funded, not to the size of the plaintiff’s compensation.
• Written contract and disclosures. Nevada requires a written litigation funding contract in clear, understandable language to the average person. The contract must also provide prominent disclosures on material terms, including:
  • The funded amount
  • The amount of any fees or charges
  • The repayment schedule and how the amount owed changes over time
  • The maximum amount the plaintiff may be required to repay
  • That the funding is non-recourse
  • The right to cancellation
• Lawsuit funding companies must be licensed. A pre-settlement funding company cannot operate in Nevada without first obtaining a license from the state.

Do I Need a Good Credit Score to Qualify for Pre-Settlement Funding in Nevada?

No, your credit score does not influence lawsuit funding approval. As noted, litigation funding is a non-recourse loan that is repaid from your settlement, only if your case is successful. As such, funding companies assess the likelihood of your case winning rather than your financial status.

To qualify for Nevada pre-settlement funding from High Rise Financial, you need:

• An active lawsuit: To secure litigation funding, you must be the plaintiff in an ongoing lawsuit. Common case types that we fund in Nevada include auto accidents, workplace injuries, medical malpractice, product liability, wrongful death, and premises liability.

• Attorney representing your case: Your lawyer will be needed to verify your case details and provide supporting documents during the legal funding process.

• Strong case: There needs to be evidence that supports the other party’s fault. Also, your damages from the incident need to be documented.

How Does the Litigation Funding Process Work?

To apply for lawsuit funding at High Rise Financial in Nevada, you need to submit basic case details and your attorney’s information. We will then get in touch with your lawyer to verify your case and ask for supporting documents. Wait for a funding decision as we determine whether you qualify and the appropriate funding amount.

If approved, you’ll receive a funding offer that clearly outlines the loan amount, fees, and the repayment amount. We use plain language to ensure you easily understand the terms. Further, your attorney helps you review the offer.

If you agree to the terms, you and your attorney will sign the contract. We’ll then provide you with the agreed-upon funds.

Nevada Lawsuit Funding Can Help You Counter Defense Tactics

In some cases, the defense and their lawyers may use delay tactics to drag out the case as much as possible. They know that a financially desperate plaintiff is more likely to accept far less than their case is worth.

When you secure pre-settlement funding in Nevada, you eliminate financial pressure. When you can afford to pay your rent and cover essentials, you remove the desperation that the defense relies on.

With cash on hand, you don’t have to accept a lowball settlement offer just to put food on the table. Instead, you can wait while your attorney builds a strong case and pursues fair compensation on your behalf.

Secure the Funds You Need Today

Navigating a lawsuit can be challenging, especially when you’re dealing with financial strain before your case is resolved.

Nevada’s regulations help ensure that pre-settlement funding remains a transparent option for plaintiffs who need financial support. Access to responsible litigation funding can provide crucial financial flexibility during this difficult period.

At High Rise Financial, we are committed to supporting Nevada plaintiffs during legal battles. Apply for pre-settlement funding now or call us today to learn more.