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Getting hurt in a negligent car accident can be a devastating experience. Such a life-altering incident can result in physical injuries, emotional trauma, and financial hardship. Essentially, you may be eligible to file a personal injury claim or lawsuit to seek financial compensation for your injuries, damages, and losses. However, settling a car accident lawsuit can take an extended period.
Thankfully, car accident victims and plaintiffs may be eligible to apply for a risk-free lawsuit loan while their car is ongoing. The legal funding can provide you with the immediate funds you need to pay medical bills, settle debts, and achieve financial relief before your case settles. In this article, we’ll explore the various aspects of car accident lawsuit funding, including how it works, what you can use it for, and the factors that affect the amount of funding you can receive.
Understanding Lawsuit Funding: What are Car Accident Lawsuit Loans?
Car accident lawsuit funding, also known as pre-settlement funding or lawsuit loans, is a financial tool that provides plaintiffs with a cash advance against their expected settlement. Generally, car accident lawsuit funding is not a loan. Rather, it is a non-recourse cash advance that you are only required to repay the funding company upon winning your case. The process typically involves applying for funding, having your case evaluated by the funding company, and receiving the funds if approved.
What Can You Use Your Car Accident Lawsuit Loan For?
You can use car accident lawsuit funding for various purposes, including:
- To pay medical bills and ongoing treatment costs.
- To buy food and groceries.
- To cover living expenses, including rent or mortgage payments.
- For repair or replacement of damaged car.
- To cover your lost wages during recovery.
- To pay legal fees and court costs.
- For debt repayment to avoid financial strain during the lawsuit
- To cover emergency expenses that arise during the litigation process.
- To cover your basic needs and other day-to-day necessities.
- To go on vacation.
Rather than waiting for your car accident case to settle, applying for a lawsuit loan can provide you with immediate funds that you need to achieve financial relief and get your life back on track.
Factors That Affect the Amount of Funding You Can Receive
Several factors influence the amount of funding you can secure against your car accident lawsuit. These include:
Strength of Your Case
The strength or merits of your legal claim is a crucial factor that affects how much legal funding you may get. The lawsuit funding company will evaluate the merits of your car accident lawsuit and the likelihood of a successful verdict based on evidence, police reports, witness statements, and your attorney’s assessment. A stronger case typically qualifies for higher funding amounts.
Estimated Settlement Amount
Furthermore, the potential value of your settlement plays a significant role in the amount of lawsuit loan you may be approved for. The legal funding company may offer you a cash advance ranging from 10% to 20% of your estimated settlement amount. For instance, if your case is valued at $100,000, you might qualify for between $10,000 and $20,000 in funding. Though, you may still be able to get more funds based on the surrounding circumstances of your unique situation.
Severity of Injuries
In addition, the extent and severity of your injuries can affect both the merits of your case and the potential settlement value. If you suffered severe injuries, you will be eligible to seek claims for higher medical bills and greater pain and suffering compensation. This can potentially increase your eligibility for a lawsuit loan and the amount you can receive. Likewise, significant damages to your motor vehicle or other belongings in the accident may lead to more legal funding for you.
Liability Clarity
In most car accident cases, liability is often established to determine who was at fault for the traffic collision. If the defendant or other party was clearly at fault for the car accident, you will have a very strong case. This automatically improves your chances of getting lawsuit funding. Likewise, if the fault is well-documented, the legal funding provider may be more willing to offer larger cash advances.
Stage of Litigation
Also, the progress of your lawsuit or how long it may take your case to settle affects your chances of getting approved for a lawsuit loan and how much you can receive. If your car accident case is closer to reaching a settlement or trial, you may qualify for higher funding. At this point, the outcome of your case will be more predictable.
Insurance Coverage
Another factor that can affect the amount of funding you can receive for your ongoing car accident lawsuit is your insurance coverage. Essentially, the at-fault party’s insurance policy limits can influence your potential settlement and, consequently, your funding amount. If it is comprehensive coverage or the insurance policy has higher limits, you may be able to receive larger settlements and more significant funding.
Your Financial Needs
Finally, your immediate financial needs may also influence the amount you can get. The lawsuit funding company will want to provide enough cash advance to cover your essential living expenses without approving you for too much funds against your potential settlement.
Are There Any Limitations or Caps on Funding Amounts?
While there’s no universal cap on the amount of car accident lawsuit loan you can get, the funding amount is typically limited to a percentage of your expected settlement. Most legal funding providers have internal limits based on their risk assessment and available capital. Usually, funding rarely exceeds 20% of the estimated settlement value. This is to ensure that you can retain the majority of your financial compensation. Also, some states may have certain regulations that limit the amount of funding you can get.
Conclusion
Car accident lawsuit funding can provide much-needed financial support while your case is ongoing. However, the amount you can receive depends on various factors, including the strength of your case, the estimated settlement value, and more. By carefully considering your options and needs, you can get the right funding to cover your essential expenses and focus on your recovery.
Do You Need Car Accident Lawsuit Loans? Call Us Today!
Contact us at High Rise Financial today to apply for a risk-free lawsuit loan. Our trusted team can enlighten you about your available lawsuit loan options and walk you through the application process. Call our toll-free at (866) 407-6404 today to apply.