When the legal and financial worlds meet, you can expect a lot of jargon you’ve never heard before. Or if you’ve heard the phrase, you don’t yet have a clear idea of what it means. Before we get into how non-recourse loans work, we need to go over what a non-recourse loan is.
Here at High Rise Financial, we try to ensure our clients understand their options, and what everything means. We specialize in providing personal injury claimants with non-recourse loans, or pre-settlement legal funding. But what does that mean? Keep reading to learn more.
Lenders classify all loans as either recourse or non-recourse. It’s very important to know the difference between the two. A non-recourse loan is designed to protect you, the borrower. With a non-recourse loan, you are NOT personally responsible for not paying back the loan. By law, the most the lender can do is try to get some form of repayment by seizing the collateral for the loan.
For example, in some cases, a home mortgage is a non-recourse loan. If you default on the loan, the bank can go after what you used for collateral to get the loan. In this instance, that means the bank can foreclose on your home. But if you live in a non-recourse state, the bank cannot garnish your paycheck or take you to court to pursue further payment even if your home’s resale value does not cover your debt.
This is the exact opposite of a recourse loan. With a recourse loan, the lender can garnish your wages and sue you for repayment. If you can’t pay the loan back, you could lose not only your home, but your car, and anything else of value needed to repay the loan in full.
To apply for free, call (877) 735-0016
Pre-Settlement Legal Funding Is a Non-Recourse Loan
Here at High Rise Financial, we specialize in helping personal injury claimants make ends meet while you wait for your case to settle or go to trial. We do this by offering non-recourse pre-settlement legal funding. Legal funding is a type of non-recourse loan. But it is NOT a typical loan. You don’t have to make monthly payments. You don’t have to worry about high compound interest rates tripling the money you eventually owe. If you win your case, we get paid out of the settlement amount. You don’t pay us a penny if you lose your case.
You May Be Eligible for Pre-Settlement Legal Funding
If you have a pending personal injury lawsuit, you are likely eligible to receive pre-settlement legal funding to help you pay your bills while you wait for your case to move forward. We determine your eligibility for an advance on your settlement based on the facts of your case. You must:
- Have filed a valid personal injury claim
- Have a personal injury lawyer or law firm representing you
When you fill out our application, we’ll ask you to provide information such as your name and number, the state where you live, the name and number of your lawyer, the value of the damages you are claiming, as well as a ballpark estimate of the compensation amount you expect to receive. We may contact you or your lawyer for further information if needed. Our underwriters use this information to determine whether we can offer you pre-settlement legal funding and, if so, what amount.
Depending on the specifics of your case, we may be able to provide up to $250,000 and can deposit it in your bank account within 24-48 hours.
Since pre-settlement legal funding is a non-recourse loan, but also not a typical loan, your personal financial situation does not figure into our decision. High Rise Financial gets repaid out of the compensation you receive when you win your case. Since your personal finances are not involved, you will not have to undergo a credit check, or provide:
- Bank statements
- Proof of employment
- Tax records
How Repayment of Your Non-Recourse Legal Funding Works
Non-recourse legal funding is not a typical loan where you send us monthly payments. You should also know that we don’t charge interest on your settlement advance. That means you won’t have to pay back two to three times what you borrowed, which can happen with some lawsuit loan companies. Instead of charging interest, we add a flat fee to the amount of your legal funding.
This will all be spelled out in your legal funding agreement. You don’t sign it until you and your lawyer fully understand how much money you will get from High Rise Financial, and how much you will have to repay when you win your case. Remember, if you lose your case, you don’t have to pay us back.
Here is how the typical repayment process works:
- You win your case at trial, or the other side offers a settlement.
- Your lawyer receives a check from the opposing party’s representatives for the full amount of the compensation package.
- Your lawyer writes High Rise Financial a check for the agreed-upon repayment amount.
- The lawyer/law firm takes out their attorneys’ fees.
- You receive the rest of the money!
We understand that personal injury cases can drag out for a long time, and because of medical bills and loss of work, you may be struggling financially. We would like to help you.
Complete a Free Application form now
Applying for Pre-Settlement Legal Funding Is Easy
Stop worrying about making ends meet while you wait for your personal injury case to settle. Apply today for pre-settlement legal funding, also known as a non-recourse loan. High Rise Financial will work to provide you with an advance on your settlement that will help you meet your financial obligations. Applying is free, and most applicants who are approved receive their cash within 24 to 48 hours after approval. While we are based in Los Angeles, we serve personal injury clients in all 50 states.
Just fill out the form on our Apply Now page, or call us at (866) 407-6404, with questions or help with starting your application.