Before you borrow money, it is always a smart idea to ask questions about how you will pay the lender back. In the case of High Rise Financial, we are sometimes asked what percentage of your settlement is used to repay a non-recourse loan (in the form of legal funding).
The answer is, it depends. There is no hard and fast rule for what percentage of your expected settlement we will loan you. We have had personal injury plaintiffs who end up receiving authorization for additional funding.
Non-Recourse Loans are Handled on a Case-by-Case Basis
To qualify for a non-recourse loan (legal funding), you must have filed a personal injury claim, and you must have a lawyer representing you. Those are the two things that are the same in every pre-settlement legal funding case we handle.
How much legal funding we can provide you depends on your specific case, as well as other factors, including:
- If yours is a wrongful death case
- If you lost a limb
- Whether you will fully recover from your injuries
- Lost wages
- Your medical bills
- Property damage
- Whether you might receive punitive damages
- What state you live in
Once we have calculated what your eventual settlement might be and when your case might settle, we will come up with a dollar figure that should help you make ends meet while your lawyer negotiates a settlement. Your non-recourse loan will be only a small portion of your expected settlement.
Types of Cases We Fund
Every case we fund involves a personal injury suffered due to the negligence of another. In general, the more severe your injuries, the higher your eventual settlement will be. As a result, the more severe your loss, the more we can potentially provide you with a non-recourse loan.
You are also likely to get a larger settlement or jury award if the negligence was especially egregious. This is known as gross negligence and can lead to punitive damages in addition to compensatory damages.
A common example of gross negligence in personal injury cases is when serious injuries result from a drunk driving accident. Another example would be where a landlord or property failed to replace a smoke detector, and people then suffered an injury or were even killed in a resulting fire.
In both situations, the negligent party demonstrated a reckless disregard for the safety of others.
Typical cases we fund include:
- Traffic Accidents
- Pedestrian Accidents
- Wrongful Death
- Medical Malpractice
- Nursing Home Negligence
- Faulty or Defective Medical Devices
- Dog Bites/Attacks
- Product Liability
- Premises Liability
- Workplace Injury
For a free legal consultation, call (877) 735-0016
What and How You Repay Us
The amount you will repay us out of your settlement is equal to the full amount of your legal funding plus our one-time, flat fee. Neither of those is an exact percentage of your eventual settlement. And since we don’t charge interest, the amount you owe will never change regardless of how long it takes for your case to resolve.
Pre-settlement legal funding repayment is contingent on your settlement. So if you win your case you pay us back, and if you lose your case, you don’t pay us a penny. Most of our clients do go on to win their cases.
When you win, your lawyer will receive funds from the other party—either the full amount of the settlement or a portion of it, if you have agreed to a structured settlement. The law firm then pays High Rise Financial out of those funds. This is not a set percentage of your settlement.
You Do Pay Your Lawyer a Percentage of Your Settlement
Your personal injury lawyer is most likely working on a contingency-fee-basis. That’s why they work so hard to get you the best settlement possible. When you hired your lawyer, they probably said their legal fees would take up a certain percentage of your settlement. The vast majority of personal injury lawyers take a fee of 33.3%, or one-third of your settlement.
Your actual legal fees may be higher than that based on your individual case and your lawyer’s fees. This agreement is between you and them.
Apply for Non-Recourse Legal Funding Today
If you’ve exhausted all your savings and need financial help paying your bills, a non-recourse loan in the form of legal funding could be a solution. Applying is free and easy. Just fill out the form on the Apply Now page, and we’ll get in touch with you and your lawyer quickly.
And of course, if you need assistance or have questions about the process, give us a call at (866) 407-6404. We’re always happy to help.