Legal funding for personal injury lawsuits can help accident victims remain financially solvent as they await their settlement. After an accident, you can face pressure to accept a lower insurance company settlement in the face of mounting bills and a loss of income. Pre-settlement funding can give you the necessary cash to pursue the maximum amount of compensation.
It can take months or even years to litigate your personal injury case, during which time your expenses could weigh heavily. Legal funding from High Rise Financial can offer you peace of mind and the financial resources necessary to pursue the justice you deserve. There’s also no risk, meaning if you lose your case, you won’t have to pay back any of your legal funding.
In This Article
What Is Legal Funding?
Legal funding is a great opportunity for those dealing with civil matters to access the compensation they need at a time when they need it the most. Although people who have been injured or suffered damages as a result of someone else’s negligence or misconduct. Although you may be entitled to financial compensation from the liable party, it takes time to go through the claims process.
In some instances, victims may be able to recover the compensation they are entitled to through an insurance settlement alone. Others will need to deal with the insurance company and bring their case to court if they hope to get the most out of their claim. Depending on the specific details of your case, it could be weeks, months, or even years before you are able to access the compensation that is rightfully yours.
That all changes when you are approved for legal funding for your personal injury claim. Personal injury legal funding provides injury victims with a portion of their injury settlement in advance. You can then use these funds to cover your costs and start to move forward with your life without winding up in further debt or struggling to cover your day-to-day living expenses.
How does Pre-Settlement Funding Work?
In order to obtain pre-settlement funding, you first need to apply with a funding company. Typically, the approval process has few requirements, and many who apply are already pre-approved for it. Once you’re approved for a pre-settlement loan, we can deliver funds into your bank account 24 hours after your application.
Pre-settlement funding is simply a payment made to you now based on the expected future value of your settlement. Funding companies offer these payments to accident victims, typically with minor fees, but don’t require repayment until a case is settled.
The IRS classifies pre-settlement funding as a non-recourse debt, meaning you don’t have to repay it. Instead, the funding company that gave you the payment will be repaid from your settlement. That means if you lose your case, you don’t have to pay anything back.
How Can Pre-Settlement Legal Funding Help You?
An accident can cause lifelong damage, making it vital to get the most for your loss. Your settlement is the only opportunity for you to do this. Unfortunately, you will face intense pressure to accept a lower settlement than you deserve after your accident due to mounting expenses such as rent, medical bills, car payments, and child care.
For this reason, personal injury cases are notoriously lopsided in favor of the defendant. They can simply wait for your financial pressures to force you to accept a lower settlement. Insurance companies also often resort to unfair claims practices to intimidate plaintiffs.
With pre-settlement funding, you can continue paying your bills even if you’ve suffered a loss of income. This can help you resist the pressure to settle for a lower amount than what you’re truly owed. And if you don’t win your case, you won’t have to pay us back.
Are Personal Injury Lawsuit Loans the Same as Traditional Loans?
Personal injury lawsuit loans are much different from traditional loans. When you are applying for a traditional loan, there are several requirements you will need to meet, including:
- Having a strong credit score
- Proof of income
- Credit references
Financial institutions, including banks and credit unions, will require applicants to have a regular source of income and good credit to approve their loan applications. However, personal injury loans are significantly different. Your credit score has no impact on whether your legal funding application is approved.
You will not be expected to pay back your lawsuit loan with your regular wages, and you might be temporarily really out of work due to the extent of your injuries. For this reason, it is not a requirement to be employed to get your lawsuit loan application approved. Additionally, traditional loans need to be paid back with interest.
The same is not true for personal injury lawsuit loans. Your attorney will pay back your lawsuit loan once your injury settlement comes in. You will never be expected to pay compound interest on your personal injury legal funding through High Rise Financial.
Steps in the Cash Advance Process
Getting legal funding for your personal injury lawsuit may seem intimidating, but the process can be very simple. We want injury victims to get their advances as fast as possible, and we want to make the task as easy as possible for them.
Because of that, there are just four steps in the cash advance process:
- You send your application in for us to review.
- We either accept or deny your application. This can happen in under an hour.
- You get your funding. This will be based on your prospective settlement.
- Once your case resolves, you repay the funding company if you received your settlement. You don’t have to do anything during this step.
Each phase of the non-recourse advance process can go very quickly. That’s because we do not need any credit checks, any proof of employment, or any tax returns. You don’t even have to pay an application fee.
How to Get High-Quality Pre-Settlement Funding
The “best” cash advance for you doesn’t necessarily mean the one that gives you the most money upfront (although we understand that more cash is usually better). Instead, you want the best deal on your pre-settlement funding.
To make sure you’re getting everything you need and avoiding predatory practices, you should make sure to:
- Calculate the full scope of your damages to give us the best idea of your prospective settlement and don’t accidentally miss an expense that you’re owed.
- Hire an honest personal injury attorney who is open to pre-settlement legal funding.
- Watch out for extra fees that might come around later down the road.
- Choose a trustworthy funding company that doesn’t give out recourse loans. If you don’t get your settlement, some companies could take money out of your pocket and even certain possessions.
Because our legal funding is not technically a loan, you don’t owe anything if your settlement doesn’t work out. Plus, we have some of the fairest rates in the industry, which means our clients can have cash left over from their settlement to pay the rest of their expenses.
Types of Personal Injury Lawsuits We Cover
Just about any type of personal injury lawsuit can qualify for legal funding. However, some of the most common types of loans we provide cover personal injury cases include:
Vehicular accidents can include a variety of types of collisions, such as car accidents, truck accidents, bicycle accidents, pedestrian accidents, motorcycle accidents, taxi accidents, bus accidents, and any other type of accident involving a vehicle.
These are often caused by negligent driving, dangerous roads, and defective motor vehicle parts.
Workplace accidents can occur within any industry. However, there are some types of injuries known for producing work entries more frequently than others. These include harbor workers, longshoremen, oilfield workers, positions that require the employee to drive a vehicle, factories, office jobs, and construction work.
Construction accidents can take many forms. If you were involved in an explosion, ground collapse, electrocution, scaffold accident, bulldozer accident, forklift accident, crane accident, or any other type of accident involving defective machinery or equipment, you may be entitled to compensation if someone else’s negligence caused your injuries.
Consumers should be able to use products they purchase as intended without the fear of injury, Illness, or death. There are some types of products that are known for causing devastating injuries more frequently than others.
Some of these products include motor vehicle parts, firearms, Medical devices, children’s toys, construction machinery and equipment, and over-the-counter and prescription medications.
Slips and Falls
Slip-and-fall cases can occur in a variety of ways. Some of the more common causes of slip-and-fall accidents include ladder accidents, stare accidents, wet floors, snow and ice accidents, debris in the walkway, loose floorboards, unsecured carpeting, defective conditions on the premises, lack of security, failure to make necessary repairs, and other types of property owner negligence.
When a healthcare provider makes a mistake or error that breaches their duty of care, they can be held accountable for medical malpractice. Some examples of medical malpractice cases include:
- Birth injuries
- Failure to diagnose
- Failure to treat
- Failure to provide follow-up care
- Anesthesia errors
- Surgical mistakes
The family members or personal representatives of those who have passed away due to someone else’s misconduct or negligent actions may have the right to compensation through a wrongful death lawsuit. Wrongful death cases give these parties an opportunity to hold the liable party accountable civilly while recovering compensation for the decedent’s medical expenses, funeral and burial expenses, the survivor’s emotional trauma, the decedent’s physical pain and suffering, and the loss of the decedent’s financial contributions, among others.
Even if you don’t see your injury listed above, you can still apply for funding for your personal injury case.
Why Should You Apply for Legal Funding?
Here are some of the main benefits of applying for legal funding for your personal injury case:
- Easy qualification – Almost anyone who is injured because of the gross negligence of another party and hires an attorney automatically qualifies for pre-settlement payments. The specific facts of each case determine eligibility.
- Quick application process – The application process can be completed quickly and does not require any paperwork. People who have poor credit or unverifiable incomes may still apply.
- Risk-free funding – We never ask for up-front fees to be paid.
- Greater financial freedom – The legal financing we provide makes it possible to make car payments, pay rent and take care of other financial responsibilities with greater financial freedom.
- No need to accept low insurance offers – Insurance companies are known to offer plaintiffs as little money as possible when trying to reach settlements. With the money we provide, you and your loved ones do not have to accept low offers and have more bargaining power.
Things to Consider Before Applying for Legal Funding
While legal funding can be a lifesaver for many personal injury plaintiffs, it is not for everyone. Even if you do think you could benefit from legal funding, there are some factors that may impact your qualifications or just how much you’ll want to borrow.
Before applying, it is important to examine the following factors:
Does Your Lawyer Accept Legal Funding?
Anyone who wishes to apply for legal funding should check to see if their lawyer is willing to work with a financing company. If the lawyer refuses, we cannot grant funds to the client.
How Much Legal Funding Do You Need?
It’s important to apply only for the amount of money that is absolutely needed. If you apply for too much, you might not be approved, which could prevent you from getting your money when you need it most.
Can You Identify the Responsible Party, and Do They Have Insurance?
You can only receive legal funding if you can identify the party who is responsible for your injury. Additionally, a funding company will only work with you if the responsible party has insurance of some kind. This provides a measure of security, as the funding company knows the insurance company will be able to actually pay for the settlement.
What Factors Impact the Amount of Legal Funding You Qualify for?
Once you identify a responsible actor for your personal injury accident, several factors will impact the amount of legal funding for which you may qualify.
- The extent of your injuries: You may be left with severe injuries after an accident that require extensive surgeries and physical therapy to recover from. The severity of your injuries will affect how much compensation you can obtain.
- The size of the responsible party’s insurance policy: The maximum amount of legal funding you qualify for is determined by the responsible party’s insurance policy.
- The number of other victims: Other victims may make claims against the responsible party and their insurance policy, which can reduce the total amount you may claim.
How Much Should My Pain and Suffering Settlement Be?
Your settlement may include an award for your pain and suffering from the accident. While each case is different, most pain and suffering awards are worth several thousand dollars, with few exceeding $15,000. Several factors impact this amount, including the following:
- The severity of your injuries
- The type of medical care you received
- How long it takes you to recover
- Potential long-term damage
These factors, along with potentially dozens of others depending on the insurance company, are taken into consideration when determining your award for pain and suffering. The award for pain and suffering can be estimated by assigning to it a number between 1.5 to 5, based on severity, and then multiplying this by the amount of financial damages you suffered.
Alternatively, your personal injury lawyer may take a per diem approach, where a flat rate is charged for each day that it took you to recover.
How Long do You Have to File Your Personal Injury Claim?
It is important to get your personal injury claim filed before the statute of limitations expires. Every state has its own statute of limitations in place that sets the amount of time an injury victim has to file their claim. If your claim is not filed before this deadline, you will lose your right to have your case heard within the civil court system.
You can reach out to your personal injury lawyer to find out how much longer you have to pursue your injury claim.
How Much does Legal Funding Cost?
The legal funding industry is largely unregulated, which allows each legal funding firm to set its own pricing structure. Unfortunately, this means that some companies take advantage of this to charge their clients exorbitant fees and interest rates. These rates can leave clients with little to nothing left over after they get their settlement.
It can be hard to imagine right now, but your case can take months or even years to resolve. Many legal funding companies charge monthly compounding interest rates of several percent or more. What seems like a reasonable fee at first can quickly snowball into a 30-70% interest charge on your principal balance by the time your case settles.
At High Rise Financial, we strive to be a true partner to all of our clients. While we can’t disclose our rates in a blog, we do offer some of the fairest in the industry with no compound interest. As a national company, we have the financial resources to offer you a fair deal for your pre-settlement funding.
Choose Our Legal Funding for Your Personal Injury Case
Anyone interested in receiving money while awaiting their settlement funding from their personal injury lawsuit is encouraged to apply now with High Rise Financial. Our hassle-free application requires no paperwork, up-front fees, credit checks, or employment verifications.
Since the specifics of each personal injury case are all that matter, no personal financial information is taken into account while an approval decision is pending. Get in touch with us today through our quick contact form or by phone to get the assistance you need with your case.