Is Pre-Settlement Legal Funding Considered a Loan in Nevada?

If you’re injured because of someone else’s negligence, filing a personal injury lawsuit can help you recover compensation and get back on your feet. However, these cases can drag on for months or years in Nevada. This can be stressful, especially if you have medical bills or need to take time off work. Even if you have a strong case and expect to receive a settlement eventually, you may need money now for your current expenses.

In Nevada, pre-settlement legal funding is a valuable financial tool for plaintiffs who are waiting for their case to settle. Yet despite that, many still believe that legal funding works the same as a loan. In this article, we’ll look at how pre-settlement legal funding differs from a loan.

What Is Legal Funding?

Also known as pre-settlement funding or lawsuit funding, legal funding is a financial arrangement that allows a plaintiff to access money before their case is resolved. A funding company, like High Rise Financial, provides you with upfront cash that can tide you over until your lawsuit is settled.

Legal funding is often referred to as a loan. However, presettlement funding is distinct from other financial services such as loans, each with a unique set of characteristics.

The Key Differences Between Pre-Settlement Funding and Traditional Loans in Nevada

Here are some of the fundamental differences between legal funding and standard loans:

Repayment obligation

• Pre-settlement funding: Legal funding is non-recourse, meaning you do not have to repay the money if you lose your case. In other words, repayment is required only if you receive a settlement. Pre-settlement funding carries minimal financial risk for the plaintiff, as there are no out-of-pocket payments.
• Standard loan: Traditional loans are recourse, meaning you’re personally liable for repayment. Plaintiffs who choose this option will need to repay the money regardless of the case outcome or personal circumstances. Failing to repay a loan can lead to damage to your credit score, asset seizure, wage garnishment, and other collection efforts.

Repayment schedule 

• Pre-settlement funding: After your lawsuit is settled, your attorney repays your legal funding from your compensation package. They also take out their attorney fees before handing over the rest of the settlement funds to you. Plaintiffs in Nevada are not required to repay pre-settlement funding while their case is in progress.
• Standard loan: Traditional loans generally require monthly payments. After you receive your loan, you’ll be required to start repaying it through monthly installments, even if your case is yet to settle. This can lead to financial pressure, especially for plaintiffs with a reduced income.

Approval requirements

• Pre-settlement funding: Legal funding approval is entirely based on the strength of your case. Since the funds are repaid from your settlement, your funding provider needs to establish that your case has merit and a high likelihood of success. Your credit score, income, and employment status do not impact approval.
• Standard loan: Before offering you a loan, traditional lenders need to ensure that you’re able to repay it. For this reason, they’ll check your credit score, income, and employment status. If your financial history is not appealing, your loan application is likely to be denied.

Collateral

• Pre-settlement funding: Legal funding is solely tied to your expected settlement. This is the only source of funds that can be used to repay your funding. If you do not obtain a settlement, we don’t pursue your assets. In such situations, we take the loss, and you walk away without owing anything.
• Standard loan: Many traditional loans are secured by valuable assets such as a home, car, or savings account. If you do not repay the loan, the lender can seize the assets as a form of repayment.

Is Pre-Settlement Legal Funding Considered a Loan?

No, lawsuit funding is not a loan in the traditional sense. Applying for legal funding in Nevada means:

• You’re not obligated to repay the funding if you lose your case
• There are no ongoing monthly payments
• There are no credit score or income requirements
• You do not need to put up collateral
• You can expect timely funding that allows you to pay for urgent expenses

Many plaintiffs in Nevada prefer pre-settlement funding over traditional loans because of the simpler qualification requirements and favorable repayment terms.

How Pre-Settlement Funding Can Be Used

Legal funding in Nevada does not come with spending restrictions. Once you receive the money, it’s yours to use as you need. Common expenses plaintiffs choose to cover include:

• Rent or mortgage payments
• Vehicle repairs
• Car payments
• Medical costs
• Groceries
• Education-related expenses
• Childcare
• Credit card payments
• Utilities
• Replacement for lost income

Regardless of the types of bills you’re facing, you can use lawsuit funding to ease financial strain and cover your costs while your attorney fights for fair compensation.

What Kinds of Cases Qualify for Legal Funding?

At High Rise Financial, we offer pre-settlement funding for a wide range of cases to support plaintiffs like yourself while they wait for compensation. Below are some of the most common case types we encounter:

• Auto accidents
• Medical malpractice claims
• Slip and fall accidents
• Premises liability
• Defective drug lawsuits
• Defective medical device cases
• Product liability
• Workplace accidents
• Wrongful death lawsuits
• Wrongful termination lawsuits
• Sexual abuse cases
• Animal attacks
• Nursing home negligence

If someone’s actions have caused you injuries or damages and you have an ongoing case, we may be able to offer you lawsuit funding. Once you submit a free online application, our team will assess your case and let you know if you qualify.

Get Pre-Settlement Legal Funding from Us

If you’re struggling to manage your bills and expenses while your case is still pending, pre-settlement funding can be a valuable resource. It provides timely access to the money you need, without requiring credit checks, income verifications, or monthly payments. Best of all, you’ll only repay the money if and when you receive a settlement.

At High Rise Financial, we offer legal funding for almost any type of personal injury lawsuit in Nevada. Contact us today to learn more about how we can support you during litigation.