People often turn to others for help when money is tight and need a cash infusion to cover expenses. Unfortunately, third-party funding is not always easy to come by. Traditional lenders usually require proof that you can repay the money you borrow so that a low income could limit your access to some types of funding.
However, this is not the case with legal funding. For example, if you have a pending personal injury lawsuit with a good chance of success, you can receive a portion of your potential settlement upfront. And you can receive these funds regardless of your income or credit history.
In This Article
Why Would You Need Legal Funding?
Many people don’t have emergency savings to fall back on when the unexpected happens. For example, CNBC reported that as of December 2020, 63% of Americans reported living paycheck to paycheck.
Without the safety net of a savings account, an injury-causing accident that leaves you with excessive medical bills and a decreased income can be especially devastating. In addition, if your income is too low to get a new line of credit or bank loan, you may end up unable to pay your bills, falling deeper and deeper into debt.
You could receive compensation for damages if someone else’s negligence caused your accident, but this can take months or sometimes years to accomplish. This delay is incredibly taxing on lower-income individuals who don’t have many financing options.
Thankfully, legal funding might be able to help fill the gap.
To apply for free, call (877) 735-0016
How Does Legal Funding Work?
To qualify for legal financing or pre-settlement funding, you must:
- Pursue compensation for damages caused by someone else’s negligence. Typically, this will mean filing a personal injury lawsuit in civil court against the at-fault party.
- Hire an attorney to represent you in your lawsuit. Since they will be working closely with the financing company throughout the process, your attorney must also be willing to cooperate with a legal funding agreement.
- Have a reasonable expectation of receiving a settlement or cash award at the end of your lawsuit. In addition, you should have strong evidence that the defendant caused your injuries and is financially able to compensate you for your losses.
Unlike standard loans or advances, legal funding is a non-recourse agreement, so the financing company has no recourse to pursue the funds if you lose your case. In other words, you’re not liable and won’t have to pay the money back if you don’t receive a settlement.
Since you are not personally liable to repay the funds, your income and financial history are not even part of the equation. Therefore, the financing company will evaluate your application based on the criteria above, and they will not ask for bank statements, proof of income, or credit scores.
What Happens If I Can’t Afford a Lawyer?
Some people choose to represent themselves “pro se” or “pro per” in court, especially if they think they won’t be able to afford to hire an attorney. This means they would prepare their arguments and negotiate with the other side independently. However, this is not always the best decision for several reasons:
- Having a lawyer leads to better odds of success in your lawsuit because they know how to navigate the system and prepare the best strategy.
- A lawyer will also have more experience in negotiations, so they may be able to help you achieve a higher settlement than you would get on your own.
- Without a lawyer, you would not qualify for pre-settlement funding to help you cover your expenses during litigation.
Thankfully, you don’t need to be wealthy to afford a lawyer since most attorneys represent plaintiffs in personal injury claims on contingency. This means you would not have to give them a retainer or any upfront fees, and they will collect their payment from the settlement if they win your case.
Additionally, lower-income individuals are more likely to qualify for legal aid to help cover their litigation costs, including:
- Pro bono representation from attorneys who volunteer their time for the sake of justice
- Grants and donations from community-based organizations and nonprofits.
Get Legal Funding Regardless of Your Income
Don’t let cash flow problems stop you from seeking justice or applying for lawsuit financing. You could be eligible for legal funding that will give you a piece of your anticipated settlement now, with no waiting or income verification.
With litigation financing from High Rise Financial, you can have the money in your account within one business day, and you only pay it back when and if you receive a settlement.
We make it easy and risk-free for anyone to gain financial freedom during a pending lawsuit. Contact us right away to find out if you qualify.