A driver who drives carelessly jeopardizes the safety of everyone around them. Speeding, road rage, texting, and drinking can lead to collisions that injure and even destroy the lives of other innocent motorists. In addition, costly medical bills and lost time at work can create a crushing financial burden for the injured.
As you likely know, waiting for compensation for your car accident injuries can take months or years. However, Ohio car accident legal funding from High Rise Financial can provide the cash you need while waiting for your settlement.
In This Article
Your Ohio Traffic Accident May Qualify for Legal Financing
Thousands of traffic accidents occur in Ohio each year, leading to severe injury or death to motorists, pedestrians, motorcyclists, and cyclists. According to Ohio State Patrol statistics, 1,154 fatal crashes occurred throughout the state in 2020 alone.
Not every accident qualifies for legal financing, but yours might if you:
- Have filed a lawsuit against the person who caused the crash.
- Have an attorney working on your behalf who agrees with your decision to seek financing.
- Have a reasonable expectation of victory in your lawsuit because of unmistakable liability and documented losses like medical bills and lost wages.
Even though this legal funding is sometimes referred to as a lawsuit loan, it differs significantly from bank loans. Eligibility does not depend on your ability to repay, so you can qualify for lawsuit funding even if you have little to no income, subprime credit, and no assets.
Advantages of Pre-Settlement Funding Over a Traditional Loan
Some people turn to their bank or credit union when they need money to pay their bills. However, it can be challenging to qualify for a loan or line of credit if your income and savings account balances have taken a hit because of an accident-related injury.
Lack of scrutiny into your personal finances is only one advantage Ohio car accident pre-settlement funding has over a bank loan. When you apply with us, you’ll also enjoy:
- Fast approval and funding: Once we get all the required information from you and your attorney, we can approve you within hours and have the money in your account by the next business day. Bank loans can take weeks to fund due to their extensive underwriting process.
- No credit checks: Your credit score drops temporarily every time a lender runs a hard inquiry on your report. This can set you back if you’re trying to build up your anemic credit history. However, we don’t need to see your credit profile, and you don’t have to worry about your legal funding application hurting your score.
- No monthly payments: We won’t collect your repayment in monthly installments, further stretching your already thin budget the way traditional lenders do. Instead, we only receive our reimbursement from your settlement once your case concludes.
- Non-recourse benefits: If you take out a loan, you’ll be obligated to pay back the entire amount borrowed plus interest regardless of the outcome of your lawsuit. Legal funding is 100% non-recourse, which means you can keep the money even if you lose your case.
Car Accident Lawsuit Funding Regulations in Ohio
While some U.S. states prohibit lawsuit funding, others, including Ohio, allow it with strict rules that protect consumers. You can find the following legal funding regulations in Ohio Code § 1349.55.
Litigation financing contracts in Ohio must include:
- A clear statement of the funding amount and related costs
- The total dollar amount that will be repaid from your settlement, including fees and interest
- A contingency that allows you five days after signing to cancel the contract without any penalties or additional obligation
- A statement proclaiming that you and your attorney are responsible for the direction of your lawsuit, and the funding company will not have decision-making powers
- A statement regarding your rights before and after the contract is signed (this includes time to read the contract, the opportunity to consult with your attorney, and a copy of the fully executed agreement)
How Modified Comparative Fault Can Impact Your Case’s Value
Lawsuit funding companies can only advance up to 20% of your case’s value, primarily based on the sum you expect from the defendant in compensation. This figure will be higher with more significant losses, which will allow you to obtain more upfront funding.
However, Ohio’s modified comparative fault law, found in Ohio Code § 2315.33, may reduce your lawsuit’s value. This would then effectively limit how much legal funding you can access.
Under this law, you are barred from filing a personal injury lawsuit if you are 51% or more at fault for your accident. However, if you were 50% or less to blame, the state would reduce your compensation by a percentage equal to your degree of liability.
For example, suppose you sustained $100,000 in damages in an Ohio traffic accident.
- If the accident was mostly your fault, you have no case for compensation, and you wouldn’t qualify for legal funding.
- If you were blameless in the crash, you could get $100,000 in compensation. While waiting for your settlement, you could access as much as $20,000 right away in legal funding.
- If you were 20% responsible for the collision, you could only get 80% of your potential settlement, or $80,000. Therefore, the legal funding amount you can expect to receive in this situation is $16,000 ($80,000 x 20%).
Get the Cash You Need From Your Ohio Car Accident Settlement
If you were injured in an auto accident caused by another driver, you shouldn’t have to wait months or years for justice. We can give you money against your lawsuit to pay your bills now and give you the leverage you need to hold out for a reasonable settlement offer.
Contact us now by calling or reaching out online. Our team at High Rise Financial can help you learn more about car accident loans in Ohio and determine whether legal funding is right for you.