Lawsuits are lengthy processes, sometimes dragging on for months or years. Often, the long wait plunges victims seeking compensation into financial hardship, especially if they must deal with high medical costs or lost wages caused by the wrongdoing. Lawsuit loans help bridge these financial gaps by providing immediate financial relief to the plaintiffs as they wait for settlement or judgment.
If you anticipate receiving a settlement from an ongoing lawsuit and you are financially hard-pressed, we can help. At High Rise Financial, we provide risk-free pre-settlement funding to help plaintiffs take care of their bills as they wait for their case to conclude. Once we establish the viability of your case, you can receive your law firm funding lawsuit loan funds within 24–48 hours.
Definition of a Lawsuit Settlement Loan
A lawsuit settlement loan is funding or money advanced to a plaintiff against their anticipated compensation. Lawsuits can take a long time to resolve, leaving victims struggling financially. Acquiring a lawsuit settlement loan helps plaintiffs meet immediate financial needs, such as paying for medical costs, repairing damaged property, or covering daily living expenses.
A lawsuit settlement advance is not a loan per se, as it is a risk-free venture. This means that the plaintiff is under no obligation to repay the loan if they do not win their case. But, once they receive their settlement, the plaintiff is expected to repay the principal amount plus the interest, which is agreed upon beforehand.
As the funding company consults with your attorney to determine the viability of your case and the amount you are likely to receive, they only provide pre-settlement funding to clients whose cases are likely to settle. Once approved, you can receive between $500 and $100,000, depending on the value of your claim.
Types of Cases Funded
Law firm funding lawsuit loans are most common in personal injury cases. However, funding can be extended to various lawsuits, such as civil rights discrimination and employment suits. Heirs can also apply for lawsuit cash advances as they wait to receive their estate share.
Common personal injury cases funded include damages from motorcycle accidents, car accidents, truck accidents, bicycle accidents, pedestrian accidents, premises liability claims (slip-and-fall accidents), medical malpractice, nursing home negligence, and animal bites.
Benefits of Acquiring Legal Funding
Beyond providing immediate financial relief, lawsuit loans offer many other benefits, as discussed below.
If you opt for an ordinary loan, you’ll have to repay it whether you lose or win a settlement. However, lawsuit loans are risk-free loans—if you don’t win, you don’t have to pay.
Not Affected by Credit Score
Another benefit of lawsuit funding is that your credit score does not affect your eligibility. As the lender relies on the settlement to recover their funds, they don’t have to worry about a plaintiff’s ability to repay. Hence, they are unconcerned with your credit score.
Ordinary loans must be repaid as agreed, which can be monthly or according to the agreement. However, lawsuit loans are more flexible, as you do not have to repay the loan until after settlement, giving you greater peace of mind.
More Time to Negotiate for a Better Settlement
This is one of the key benefits of lawsuit funding. When faced with medical bills piling up and a scarcity of resources to cover living expenses, you may not be able to hold out long enough for your attorney to negotiate for fair compensation. In such instances, the insurance company may take advantage of your desperation by offering a low-ball settlement.
However, when you apply for pre-settlement funding, you can take care of your pressing needs and allow your attorney more time to negotiate with the defendant to maximize your settlement.
Lawsuit loans are designed to relieve victims facing financial distress while seeking justice. As such, they have easy terms for eligibility.
To qualify for the advance, all you need is to:
- Have a filed lawsuit.
- Be represented by an attorney.
- Ascertain the defendant is insured.
- Be at least 18 years old.
How does Lawsuit Lending Works?
To obtain funding, you must have an attorney representing you. While it is possible to represent yourself in a lawsuit, working with an attorney is preferred, as you can leverage their experience to develop your case and negotiate a fair settlement. Once the attorney evaluates your case and determines the possible compensation, you can then apply for funding.
After receiving your application, the funding company liaises with your attorney to gather more information about the case. They then evaluate the details to determine how much the case is worth. Once approved, the lender sends the money immediately, which you consent to pay back with set interest after settlement.
Following the settlement, the lawyer deducts their fees and administrative costs before paying the lender. The attorney then pays the lender the principal plus the interest accrued, and you receive the balance. If the balance after attorney fees and administrative is insufficient to cover the loan principal and interest, the lender only receives what remains, as you are under no obligation to repay the loan from off-settlement sources.
Ideally, lawsuit lending is a simple five-step process:
- You reach out to the lender and apply for the loan.
- The lender contacts your attorney to collect information.
- The lender reviews the case and approves the loan request.
- All parties sign the agreement.
- The lender sends you the cash immediately.
Cost of Lawsuit Funding
The cost of funding varies from one lender to another. However, on average, they charge between 2% and 4% in monthly interest.
Generally, the cost goes up the longer the case drags on. For this reason, it is essential to consider the entire costs of the loan so you know how much you will need to pay from the outset. Some providers charge application fees and have hidden costs, so it’s important to read the fine print before applying for a loan.
Apply for a Lawsuit Pre-Settlement Loan at High Rise Financial
If you have an ongoing lawsuit or are waiting for a pending settlement and are financially pressed, you can get funding to relieve your financial burden. At High Rise Financial, we provide risk-free pre-settlement law firm funding lawsuit loans to plaintiffs, allowing them to hold up in negotiations and avoid rushed, low-ball settlements.
Need the cash? Contact us, and let us evaluate your case.