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There are many situations where a person may need to borrow money through pre-settlement funding to make ends meet while they wait for their personal injury case to be settled. However, these loans are very different from what you can expect from a traditional loan, requiring you to begin making payments right away. Do you make payments on these loans, and what happens if you miss a payment on legal funding for personal injury lawsuits at High Rise Financial?
How Pre-Settlement Funding Works
Pre-settlement funding allows you to obtain a loan to access the funds from your expected lawsuit now instead of waiting for the case to be settled first. Since that process can sometimes take months or even a year or more to happen, having access to your money now can be invaluable. Pre-settlement funding gives you that access, but it is much unlike a traditional loan.
Instead of making monthly payments to the lender of the settlement loan, you will gain access to the money and then repay the loan in full when the settlement comes to you. Your attorney will send the money owed to the pre-settlement lender directly from the settlement payment, meaning you do not make any payments to them. The loan is then settled in full at the time of that payment.
If, for any reason, you do not win your case, you do not have to repay your loan, and that means you do not make any payments towards the debt. In this case, the lender has no recourse and cannot collect on the loan, allowing you to move forward with your life. For many people, this provides peace of mind.
Do You Make Payments During the Waiting Period for a Pre-Settlement Loan?
Typically, you do not have to make payments on the pre-settlement loan during the period between receiving the funds and the case being settled. However, it is critical that you read the terms and understand the requirements of your loan, including all applicable fees that may apply to you. Most often, you do not have to worry about repayment.
To apply for free, call (877) 735-0016
How Is a Pre-Settlement Loan Paid Off?
In a pre-settlement loan, you do not have to make payment on your borrowed funds for some time, typically the length of time between being accepted for the loan through the final settlement from the lawsuit. So, what happens once you win your case and the settlement occurs? Here is what you can expect.
- The at-fault party or insurance company makes payment based on the settlement required by the court.
- Typically, these funds are sent to your attorney as a first step, as the attorney is paid for their services out of the settlement first.
- The attorney is then able to submit payment to the pre-settlement funding lender for any amount of money you have borrowed.
- The remaining balance goes to you to use as you would like.
When the attorney sends the funds to the pre-settlement funding company, the loan is paid off in full, and that typically includes the amount you borrowed and the amount of any interest or fees applicable. You should have a good understanding of these costs before you actually agree to the loan terms, and that is something we will tell you when you reach out to us to apply. The process can be easier than you think to pay off the funds owed to the lender, and there is no debt lingering over your head for years to come.
What Are the Benefits of Pre-Settlement Funding?
The use of pre-settlement funding is often a necessity due to the long delays that can accompany the process of obtaining the money owed to you after an accident or other lawsuit. Though each situation is very different, if you need money now to help you with any need and cannot wait months for the settlement to come in, now is the time to consider these loans. Here are some of the benefits of using this type of funding:
- Get money fast in as little as 24 hours after approval.
- It is a no-risk loan – if you do not receive funding from your loan, you do not have to repay this debt.
- You do not need to have employment or have any income verification as a part of the process to obtain this loan.
- No credit check is done – it does not matter if you have good or bad credit here.
- You do not have to submit any financial documents outside of the bank information to fund your loan.
Keep in mind that pre-settlement funding through High Rise Financial is not a traditional loan or a cash advance. Rather, this is a way to get money into your hands now to meet your needs but not have to worry about actually repaying those funds in any way. That is all taken care of for you when the lawsuit is settled and you receive payment for those losses.
Make Sure You Understand There Is a Cost to Borrowing These Funds
While a pre-settlement funding opportunity like this can be a necessity and very much worthwhile, it is important to know there are costs involved in the process. You will know all of the costs and fees associated with the pre-settlement funding when you apply – we will always be transparent to you about all information regarding the loan. If you have any questions about this type of funding or the costs involved, our team is always available to help you answer them.
Contact Us Now to Get a Free Quote for Pre-Settlement Funding
So, what happens if you miss a payment on pre-settlement funding like this – you will not have to worry at all. Our team at High Rise Financial is ready to help you obtain the funds you need right now so you can pay your bills and move forward with your life with no obligation to repay the loan if you do not win your case. It all starts when you apply with us now.
Call or text (877) 735-0016 or fill out our form to apply today for free.