If you’re involved in a personal injury case, it may seem like it’s taking forever for the other side to settle. Or you may be facing delays in going to trial. Insurance companies will fight to avoid paying you a penny more than they have to. They hope that by dragging your case out, you will be more willing to accept a lowball offer. Don’t do it.
If you’re having trouble paying the bills while you wait for your case to resolve, a non-recourse loan in the form of pre-settlement legal funding may be the risk-free solution to your problems. And in addition to all the other special circumstances surrounding legal funding, the cash you receive is not considered income.
In This Article
Non-Recourse Legal Funding, Explained
High Rise Financial works with personal injury victims and their lawyers to provide you with a non-recourse loan that is tied to your eventual settlement or jury award. While you are expected to pay the money back when you win your case, legal funding is not the same as a typical loan. The application process and the repayment process are both light years away from a standard loan.
Once you and your personal injury lawyer agree to pursue a non-recourse loan with High Rise Financial, you fill out the application form. All we need is information about your case. The amount of money we can provide you is linked to your settlement rather than your creditworthiness. This means:
- NO credit check
- NO proof of employment required
- NO tax documents needed
Once you fill out the form on the Apply Now page, High Rise Financial contacts your attorney to get the specifics of your case and the damages you are pursuing. Based on that information and the settlements paid out in similar cases, our underwriters tell us how much we can offer you in a non-recourse loan.
We then present you with an offer and include a one-time fee in the total amount to be paid back. If you and your lawyer sign the agreement, we can have the cash in your account within 24 hours or so.
Interested? Fill out the form on the Apply Now page to get started.
Contrary to a standard loan such as a car loan or home mortgage, with pre-settlement legal funding:
- There are NO monthly payments
- There is NO compound interest
- You pay us a lump sum when you win your case
Whatever amount of cash we are able to provide is yours to spend without worrying about monthly loan payments. When your case settles or you get a jury award, your lawyer will pay us directly out of those funds. Once they deduct their legal fees and any other necessary payments, the remainder of the money is yours.
To apply for free, call (877) 735-0016
If You Lose Your Case
Remember when we said that getting pre-settlement legal funding is risk-free? Well, here’s why. Since it is a non-recourse financial agreement, if you lose your case, you don’t have to pay us back. Your settlement was the collateral on which we based your cash advance. If there’s no settlement, then there is nothing for us to collect.
We take that risk so you don’t have to.
Pre-Settlement Legal Funding Is Also Not Reportable or Taxable
Since a non-recourse loan is not considered income, you don’t have to report it if you apply for a personal loan. You also don’t have to report it as income if you are filling out the Free Application for Federal Student Aid (FAFSA).
And since the IRS doesn’t consider legal funding as income, the cash you get from High Rise Financial is not taxable at the Federal, state, or local level.
Your Eventual Settlement May Be Considered Income
As laid out in their publication on settlements and taxability, the IRS does not generally tax a settlement you receive in a personal injury case. But there are many exceptions, so you will want to consult a tax professional. In addition, if you are awarded punitive damages, those will be taxable.
If you owe back taxes or back child support, the various government agencies must be paid — they may have already placed a lien on your settlement. Your lawyer can help take care of that.
But you can worry about all of that when the time comes. For now, focus on paying your living expenses with your non-recourse loan. Taking some of your financial worries off the table will allow you to help your lawyer negotiate a strong compensation package.
Apply for Non-Recourse Legal 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.