Can you apply for pre-settlement funding more than once? If you’re running out of your first round of legal funding, you’re probably wondering this. Accidents are expensive, and it’s easy to misjudge how much money you’ll need after one..
The good news is that yes, you may be able to obtain another round of legal funding. However, whether or not you can will depend on the specifics of your case and how much funding you’ve already obtained. Find out what it will take to get more of the money you’ll need to fight for your maximum settlement.
Can You Get More Than One Pre-Settlement Loan?
You can get more than one pre-settlement loan, but there is a significant catch. You can only receive around 15-20% of your total expected settlement ahead of your case as legal funding. This is meant to protect both plaintiffs and legal funding companies from taking on too much risk.
You’ll want to speak with your legal funding company to find out what proportion of your settlement they can offer you as pre-settlement legal funding. If you’re at or near your lending limit, you may not be able to obtain additional legal funding.
Qualifications for Obtaining Pre-Settlement Legal Funding
In many cases, if you’ve already been approved for a previous payment from your legal funding company, you will also qualify for another. However, you’ll still need to fulfill some basic qualifications. Depending on the specifics of your case, there is a chance you won’t qualify for additional funding.
You Must Have a Pending Lawsuit
In order to qualify for pre-settlement legal funding, you must have filed a personal injury lawsuit in court. Your lawsuit must still be in court and cannot have already been resolved in some way. Some cases of clients we have helped in the past include:
- Medical device injuries (such as transvaginal mesh or hip implant lawsuits)
- Nursing home negligence
- Slip and fall cases
- Car accidents
- Truck accidents
- Dog bites or animal attacks
You can obtain legal funding for your case even if it’s already in progress before you apply. You can also qualify for additional funding if your case is already in progress so long as you meet the basic qualifications.
You Must Be Represented by an Attorney
To be eligible for pre-settlement legal funding, you must have a law firm or lawyer on your case. Third-party legal funding companies work directly with attorneys to structure your cash funding and repayment. Since your attorney will be repaid at least in part by your legal funding company, they need to first agree to this payment structure for you to receive your funding.
The Amount of Pre-Settlement Legal Funding You Can Receive
The amount of pre-settlement legal funding you can receive depends on several factors, including:
- How and in what state your accident happened
- Who you have filed a claim against (individual, company, government agency)
- The severity of your injuries
- Your current and future medical bills
- Your chances of a full recovery
- The amount of lost income now and in the future
- Property damage
- If you can seek punitive damages
- If yours is a wrongful death case
- In general, the more severe your injuries and expenses, the higher your eventual settlement should be. And punitive damages can be a wild card that could increase the amount of your award if you go to trial.
Our underwriters take all of these factors into consideration to determine your predicted settlement or jury award, then tell us the amount of pre-settlement legal funding we can offer you.
Range of Funding Available
The exact pre-settlement legal funding that you can apply for and receive is tied directly to your predicted settlement. That said, we have offered previous personal injury plaintiffs anywhere from $500 to $250,000.
Higher amounts of up to $1 million are typically reserved for the most severely injured clients, as well as wrongful death claims.
A Percentage of Your Predicted Settlement
In general, in the legal funding industry, you can expect to receive between 10-20% of your expected settlement in the form of an advance. This is to ensure that you are able to pay your lawyer, your legal funding company, and any other mandated payments and still have some money left over to pay your medical expenses.
Repaying Your Pre-Settlement Legal Funding
With a traditional lawsuit loan, you could face high compound interest rates and mandatory repayment regardless of whether you even win your lawsuit. That arrangement has left many unfortunate personal injury claimants in a financially ruinous position. According to the Center for Public Integrity, some borrowers have to pay two to three times the value of the non recourse lawsuit loan they originally borrowed.
However, a reputable legal funding company won’t saddle you with these terms. Using a non-recourse arrangement, they can provide you with no-risk funding at a flat fee rather than using compound interest. You also won’t have to pay anything back on your loan unless you win your settlement.
Payment Comes From Your Settlement
If you win your settlement, your attorney will receive a check from the at-fault party for the compensation amount. Then, they send High Rise Financial a check for the agreed-upon repayment amount directly out of that compensation package. That way, the repayment process is finished before you even have to worry about it!
If You Lose Your Lawsuit
You may decide to take your case to court because the other side won’t agree to a fair settlement, only for a jury to declare in their favor. If this happens, you’ll be left without compensation. If you lose your lawsuit, don’t panic: you won’t owe us anything back.
Legal Funding Is Not Really a Loan at All
The reason why you won’t owe anything on your lawsuit loan if you lose your case is because legal funding isn’t really a loan at all. Your ability to receive funding depends solely on you being involved in a pending settlement case. As long as you’re represented by a lawyer, you can apply and likely be approved for legal funding.
Approval then depends on the strength of your case and the severity of your injuries, rather than what your credit report says. And rather than make monthly payments as you would with a bank loan, you pay us back in full when you win your case.
The repayment amount would include all rounds of legal funding plus our fees. We do not charge interest, so you will always know what you owe. Contrast that with a lawsuit loan, which can have interest rates of up to 40%!
I Was Rejected for More Pre-Settlement Legal Funding. What is a Buyout?
If your application for more money has been rejected by your legal funding company, you still have options. Depending on the quality of your settlement, you may still be able to obtain more pre-settlement legal funding through what is known as a buyout. In a buyout, another legal funding company will buy your settlement from the company you originally worked with.
How Does a Settlement Buyout Work?
The process for a settlement buyout is quite simple. Your new legal funding company will contact your old one and discuss the details around your case. The new company will pay off what is owed on your current round of legal funding and can offer you more based on their purchase of your settlement.
Apply Now to Get Your Money
If you are feeling the pressure of the opposing side’s insurance company’s stall tactics, ease your worries by getting no-risk pre-settlement legal funding from High Rise Financial. If you wind up needing more due to life’s unpredictability, you can always apply again or contact our underwriters to help you restructure your cash funding.
Applying is quick, simple, and transparent. We don’t require credit checks, proof of employment, tax returns, or other financial paperwork not related to your lawsuit.
To apply today, just fill out the form on our Apply Now page, and our underwriters will take over from there. Depending on your case, you may have up to $250,000 in your account in as little as 24 hours.
If You Received Your Initial Pre-Settlement Loan from Us
If you have already received a pre-settlement loan from High Rise financial, applying for additional funding is relatively straightforward. What you would do is contact your case manager. They are most familiar with your case. You do not need to start the application process from scratch.
After an updated review of your claim and where it stands, as well as your financial needs, we will determine if we can provide you with another pre-settlement loan. Industry best practices are for us to fund 5-10% of the estimated value of your case. This helps ensure that you receive a meaningful amount of money from your settlement, even after you pay legal fees and court costs.
We have provided clients with anywhere from $500-$250,000 in legal funding. According to the Alliance for Responsible Consumer Legal Funding (ARC), the average funding amount for our industry is $2,000. But again, how much you receive depends on the specifics of your case, and how many times you apply for funds.
If You Received a Pre-Settlement Loan Elsewhere
If you received a pre-settlement loan from another legal funding company and they have rejected you for more money, you can still apply with High Rise Financial. If our underwriters believe your case has room for additional funding, we just need to pay off the initial funding amount to the first company.
This helps reduce the risk of your case being “overfunded” when it actually settles. We want you to be able to pay off everything you owe and still have plenty of money left to handle your medical expenses.