Many of the personal injury victims we work with come to us after they’ve used up all of their savings or other sources of income. Serious injuries prevent many personal injury plaintiffs from working at all or put them in a position where they don’t make enough money to pay the bills. If this sounds like you, applying for pre-settlement funding with High Rise Financial may be a good, risk-free option.
Your personal injury case may take longer than you thought to settle as the insurance company tries to drag it out. Or the legal team for the other side may keep delaying your trial. In these situations, the cash payment you can receive from High Rise Financial could be a lifesaver. But even though it’s cash you receive for personal use, pre-settlement funding is not considered income.
Similar to the way a personal loan or home mortgage loan is not considered income, neither is pre-settlement funding. Legal funding acts like a loan, but it doesn’t have all of the trappings that come with a traditional loan. You will be required to pay back your pre-settlement cash advance when you win your case. Since repayment is part of the written legal funding agreement, the Internal Revenue Service (IRS) does not consider the money you receive as income.
Interested? Fill out the form on the Apply Now page to get started.
In This Article
Pre-Settlement Funding Is Not Reportable or Taxable
Since the IRS does not count pre-settlement funding as income, you are not required to report your cash payout as income if you apply for a separate personal loan. And if you’re filling out the Free Application for Federal Student Aid (FAFSA) or a CSS Profile for your college student, your legal funding is not reportable parental income.
In addition, since pre-settlement funding is not considered income, the money you receive from High Rise Financial is not taxable. You do not need to report it on any tax return.
Parts of Your Actual Settlement or Jury Award May Be Considered Income
In their publication on settlements and taxability, the IRS does not tax a settlement you receive for personal injuries or pain and suffering. But settlement payments for lost wages or punitive damages will be taxable. It’s complicated, so we advise you to consult a tax professional.
However, if you owe back taxes, you can be sure the IRS or state will demand full payment out of your settlement; in fact, they may have filed a lien. And if you owe back child support, your child(ren)’s other parent may have also filed a lien. Your lawyer can help you meet your obligations.
To apply for free, call (877) 735-0016
Getting Pre-Settlement Funding and Paying It Back
As long as you are involved in a personal injury lawsuit and have a lawyer representing you, you are eligible to apply for pre-settlement funding with High Rise Financial. While you have to repay the money (along with our one-time flat fee) when you win your case, pre-settlement funding differs substantially from a standard loan.
Applying for Pre-Settlement Funding
Applying for pre-settlement funding is free, fast, and easy. All you need to do is fill out the application form with some basic information, like your name and contact information and the same for your lawyer. We then get information about the specifics of your case from your lawyer.
Since your legal funding amount is tied to your future settlement rather than your creditworthiness, this means:
- NO credit check
- NO proof of employment
- NO tax documents
We approve most people within a day. Once you’re approved and our underwriters determine how much pre-settlement funding we can offer you, we will send you a written offer. If you and your lawyer agree and sign the documents, we can generally deposit the funds into your bank account within 24 hours.
Repaying High Rise Financial
Pre-settlement funding is different from taking out a personal loan. Here, you have:
- NO monthly payments
- NO compound interest
The money is yours to take care of expenses as they come up. Then, when you win your case, you pay us back in one lump sum. Your lawyer will pay us straight out of your settlement funds. They then deduct their legal fees and any other necessary payments to comply with tax laws and any liens against your settlement. Then, the remainder of the money is yours.
If You Lose Your Case
Simply put, if you lose your case, you don’t have to pay us a penny. Since pre-settlement funding is a type of non-recourse loan, we cannot pursue you in court and force you to sell other assets or garnish your wages. In a non-recourse loan situation, the lender (High Rise Financial) is only allowed to take the collateral as payment if a borrower defaults. And since your settlement was the collateral for your legal funding, there is nothing for us to collect if you lose your case.
It truly is a risk-free proposition for you.
Apply for Pre-Settlement Funding Today
If you’ve exhausted your savings and other sources of income while you’re waiting on your personal injury case to resolve, non-recourse legal funding from High Rise Financial could help tide you over. Get started by filling out the form on the Apply Now page.
Once you’re approved (and we approve most applicants), we can have the funds in your account within 24 hours of you and your lawyer signing the agreement.
If you have questions or need help with the application, you can also call our offices at (866) 407-6404.