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 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.
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.
Types of Personal Injury Lawsuits We Cover
Just about any type of personal injury can qualify for legal funding. However, some of the most common types of personal injury lawsuits that we cover include:
- Workplace accidents
- Construction accidents
- Product liability
- Dog bites
- Slip and fall accidents
- Medical malpractice
- Wrongful death
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’s 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 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. On the other hand, you could walk away with scarce visible injuries but extensive emotional trauma. 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 took 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 to 5, based on severity, and then multiplying this by the amount of financial damages you suffered.
Alternatively, your lawyer may take a per diem approach, where a flat rate is charged for each day that it took you to recover.
How Much Does Legal Funding Cost?
The legal funding industry is largely unregulated, which allows each legal funding firm to set their 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. 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 case is encouraged to apply 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 to get the assistance you need with your case.