When you get any type of loan, you eventually have to pay it back. The industry standard is that you make monthly payments, which include both principal and interest. With recourse loans, you are personally liable for the full repayment of the loan if you default. For instance, let’s say you bought a fancy new car and got a recourse loan (standard in the industry). But then you lost your job and stopped making car payments. The lender could:
- Seize or repossess your car
- Sell the car for less than the loan amount
- Pursue legal action where the court could order repayment of the remainder of the loan by:
- Garnishing your wages
- Forcing you to sell other assets to pay the loan
With a non-recourse loan, you are not personally liable for the totality of the loan. The only thing the lender can do if you default on the loan is to seize the collateral you put up in order to get the loan in the first place. A classic example of this is a non-recourse mortgage loan. If you have good credit, and a low debt-to-income ratio, you can get a non-recourse mortgage loan. The house you buy is the collateral for the loan. If you default, the bank forecloses, evicts you, and sells the home, potentially for less than what you still owe on the loan.
But that’s where it stops. With a non-recourse loan, the bank does not pursue you in court for the remainder of the loan.
Pre-Settlement Legal Funding Is a Non-Recourse Loan
Pre-settlement legal funding is a non-recourse loan, with a couple of big differences. To apply for and receive pre-settlement legal funding, you have to be in the middle of a valid personal injury claim or lawsuit. The repayment process is a lot different as well.
If you have filed a personal injury lawsuit and you’re financially struggling while you wait for an insurance settlement or the case to go in front of a jury, you may be looking to take out a loan. Before you go to a bank or apply for a risky lawsuit loan, talk to High Rise Financial. We offer pre-settlement legal funding for people in your situation. Fill out the form on our Apply Now page to get started! Depending on the specifics of your case, you may be eligible for up to a $250,000 advance on your settlement.
How Pre-Settlement Funding Is Different from a Standard Loan
If you are involved in a personal injury lawsuit and have a lawyer representing you, you are eligible to apply for pre-settlement legal funding. It is not the same as applying for a regular loan. It’s much easier.
The Application Process
When you apply, we will ask you a few simple questions, including your name and contact information, your lawyer’s name and contact information, the specifics of your injuries and your case, and the amount of your claim/expected settlement.
Armed with that information, our underwriters will determine how much legal funding we can give you. The amount will be higher based on the severity of your injuries, the strength of your case, and whether there are potential punitive damages involved. You will have a decision the same day you apply, sometimes within just a few hours.
We said the application process is different. Because this non-recourse loan is based on your personal injury case rather than your finances, this means:
- NO Credit check
- NO Requirement to see your tax return
- NO proof of employment needed
- NO fee to apply
The Repayment Process
The repayment process for pre-settlement legal funding is also quite different than a standard non-recourse loan. With a standard loan, you make monthly payments for a specific amount of time, until the loan is paid off.
With legal funding, you don’t make any monthly payments. You don’t pay interest. The way it works is different because you repay us directly out of your eventual insurance settlement or jury award. We charge a flat, one-time fee for our services, which is included in what you repay. This is all laid out in the agreement you and your lawyer will sign.
What this means is that the pre-settlement legal funding we deposit in your account is yours to use. All of it. Most of our clients use it to pay for things such as:
- Medical bills
- Home renovations to accommodate your injuries
- Mortgage or rent payments
When your case eventually settles or you win a jury award, your lawyer will get a check from the opposing party. They will pay High Rise Financial back the agreed-upon amount, pay your legal fees and any other bills associated with your case, and then the remainder is yours!
Pre-settlement legal funding is easy to apply for and easy to repay. It can be a great solution for your financial troubles during a personal injury case.
Applying for Non-Recourse Legal Funding is Simple and Quick
By applying for pre-settlement legal funding with High Rise Financial, you can help decrease your stress level, as well as pay some bills. Your personal injury case may take months or even years to settle. But non-recourse legal funding allows you to focus on building a strong case to increase the amount of your eventual settlement or jury award.
The process is simple and transparent from start to finish. Once you’re approved, the terms of your non-recourse loan repayment process will be clearly laid out in writing. Once you and your lawyer sign, we can have funds in your account within 24-48 hours. Use our Apply Now form to get the process started. For more information, call our office at (866) 407-6404.