When you are in the midst of a lawsuit, you are caught between two desires: the need for a quick resolution to compensate your bills and injuries, and the desire to hold out for the best possible settlement.
In many cases, the opposing party and their insurance company will purposely stall negotiations. They do so because they know that your injury might limit your income while increasing your expenses, leading you to settle for less than you deserve just to get some cash in your bank account.
There are several ways to combat this tactic, but among the most popular are lawsuit loans and pre-settlement legal funding. Both methods give you cash now, but the pre-settlement legal funding provided by authorized lenders like High Rise Financial is far superior to ordinary lawsuit loans. This is because pre-settlement legal funding does not function like a typical loan and (unlike lawsuit loans that the New York Times calls “largely unregulated”) greatly reduces the amount of risk assumed by you, the borrower.
Lowering Your Risk
Getting funds from any lending institution amounts to taking on a debt, or an agreement to repay the money that you receive. According to the Internal Revenue Service, all debt can be divided into two categories: recourse and non-recourse.
Lawsuit loans, as well as other loans, can be recourse in nature. Essentially, this means that the lender can pursue you for the full value of what you owe even after taking the collateral associated with your loan. For example, consider home loans.
- You take out a recourse loan from a bank to purchase your home.
- After many missed payments, you default on your loan.
- The bank takes the home as collateral for the debt you owe, but your home’s value does not cover your total debt.
- The bank begins to pursue the rest of the money you owe, including taking the money directly out of your wages each week.
There is very little protection for the borrower in this circumstance, and a recourse loan can mean that you are on the hook for repayment for many years. This form of debt can leave you worse off than you were before you took out the loan!
Pre-settlement legal funding from High Rise Financial, however, is a form of non-recourse debt. This type of funding sets a clear limit for the amount that the lender can pursue in the event of a default. Consider a home loan again, but this time with a non-recourse version.
- You take out a non-recourse loan to purchase a house.
- The house serves as collateral for the loan.
- You end up defaulting on your loan.
- The bank takes your house.
- Even if your house’s value does not cover your total debt, the bank cannot pursue additional payment from you.
- This is the end of the matter.
Additional Protections Provided Through Pre-Settlement Legal Funding
In addition to being a form of the more protective non-recourse debt, pre-settlement legal funding from High Rise Financial also provides a much better option than lawsuit loans for a variety of other reasons.
Repayment Comes From Your Settlement
Instead of being based on your income, or being tied down to monthly payments, the repayment of your pre-settlement legal funding comes directly from the reward you receive at the end of your case. This can be a settlement or a jury award. Once your lawyer receives the check from the at-fault party, they will send the agreed-upon repayment amount to High Rise Financial, take their lawyer fees, and send the remainder to you. Thus, no monthly payments, no hassle, and no worries over repayment hanging over your head for years.
Protection Against Losing Your Lawsuit
In some cases, lawsuit loans can bind you into a repayment plan that goes into effect even if you lose your lawsuit. Even the most seemingly airtight case can go awry in court, and sometimes injured people are left with no compensation. If that happens and your lawsuit loan has no protection for you, you might have to spend months or years repaying the loan even though you did not get any recovery.
On the other hand, pre-settlement legal funding from High Rise Financial protects you against this possibility. If you do not recover a settlement or jury award, you do not owe us anything. You read that right. If you lose your lawsuit, you keep the funds we provided and owe nothing back. This should remove any lingering doubt as to the superiority of pre-settlement legal funding over risky lawsuit loans.
The application process for pre-settlement legal funding is quick and simple. All you have to do is fill out the Apply Now form, giving us information on the facts of your case. You don’t have to undergo a credit check, and we do not look into your employment status or income levels. In some cases, our underwriters approve up to $250,000 that can show up in your bank account within 24 hours of applying.
Fill out the form on our Apply Now page to get your money now! If you have any questions or concerns, get in touch with our team at (877) 823-4377. We’re standing by to take your call and help you feel comfortable with your financial choices.