Since lawsuits sometimes last for months or years, injured claimants often turn to outside sources for financial assistance. After all, your rent payments, mortgages, and bills don’t wait for you to get the compensation you deserve. There are plenty of dangerous lenders out there and harmful options that you should try to avoid, like lawsuit loans that are decried by organizations like the Center for Public Integrity.
The better option, and one that is available at NO RISK to you, is pre-settlement legal funding from an authorized lender like High Rise Financial.
Below, we will unpack what it means for our pre-settlement legal funding to be no-risk. The bottom line is that if you have a personal injury lawsuit on the books and need cash to hold you over while your attorney fights for just compensation, get pre-settlement legal funding as soon as possible. Fill out our online application on the Apply Now page or call our team at (866) 407-6404 to learn more.
How Pre-Settlement Legal Funding Is No-Risk
To understand how pre-settlement legal funding presents you with no risk, it’s best to look at riskier lawsuit lending types so that you can see the difference. For a lawsuit loan, you might get roped into a deal that has you paying back monthly payments, with compounded interest, even if you lose your lawsuit. Thus, you and your family become actually worse off than before you got help!
Pre-settlement legal funding is different. With High Rise Financial, you don’t have to pay us back if you lose your lawsuit. But that’s not the only way that legal funding is better than a lawsuit loan.
Pre-settlement legal funding from High Rise Financial is non-recourse. This is one of the two categories of debt into which the Internal Revenue Service classifies all debt. The other type (like most lawsuit loans) is recourse debt. With recourse debt, you are held personally liable for the amount you owe. Non-recourse debt, on the other hand, limits the ability of the lender to pursue payment. Let’s look at an example.
- You take out a recourse loan from the bank to finance your home purchase.
- The home is used as collateral for that loan.
- After a series of difficult life circumstances, you default on your home loan.
- Since the home was used as collateral, the bank takes it to repay your debt.
- Unfortunately, the value of the home does not meet the amount that you owe.
- Since the loan was recourse in nature, the bank can still pursue more payment from you, including taking money directly out of your paycheck each month.
With a non-recourse loan, the most the bank could do would be to take the collateral. Since legal funding comes directly from your compensation in your lawsuit, the most a lender can take in repayment for non-recourse pre-settlement legal funds would be the agreed upon amount of compensation.
Translation: you owe us nothing if you lose your case, and we cannot legally pursue extra payment from you even if we wanted to!
No Risk of Default
Have you ever missed a payment on an auto loan because you simply forgot to add it to your calendar? With pre-settlement legal funding from High Rise Financial, you don’t have to worry about that kind of mistake. We get repaid directly out of the settlement check or jury award that is sent to your attorney. In fact, your attorney simply writes us a check for the agreed-upon repayment amount and sends it to us before sending you the rest of your compensation.
- NO monthly payments
- NO compound interest
- NO risk of defaulting because you keep forgetting payments
- NO hassle
Getting the Money You Need Today
If you are in the middle of a lengthy lawsuit negotiation process, or in the midst of a courtroom battle, you might need cash to cover your expenses. Pre-settlement legal funding can be used for anything you need, such as:
- Rent or mortgages
- Groceries for your family
- Gas money
- Utility bills
- Investments (though these are taxed like other investments)
- Car repairs
Our underwriters have approved up to $250,000 for people with qualifying cases. Even better, we can have the money in your bank account in as little as 24 hours after you apply. To get your money, and take the sting out of the opposing side’s stall tactics, simply fill out the easy-to-use form on our Apply Now page.
If you have any questions about pre-settlement legal funding, eligibility, the repayment process, or other topics, call (866) 407-6404 to speak with a member of our team.