Lawsuits are designed to provide compensation for personal injuries and other wrongs. While filing a lawsuit can eventually result in the financial compensation you deserve, the process is often lengthy and can be quite costly. Expenses and medical bills can quickly pile up, but it could take well over a year before you finally receive your settlement. If you find yourself in this position, you may be wondering if you can take out a loan against your pending lawsuit proceeds to cover your current expenses
Fortunately, there are solutions available to help you cover these personal expenses. Legal funding companies, such as Apex Legal Funding, offer a number of options to help you through this challenging situation, such as pre-settlement funding or lawsuit loans, depending on the type of legal claim you have and your state of residence. Here’s what you need to know about this financial option.
Why File a Personal Injury Lawsuit?
In the United States, millions of people are injured in accidents each year. In some cases, the accidents are their fault. In other cases, someone else caused the accident
You can file a personal injury lawsuit if you were hurt in a car accident, a slip and fall accident, or any other type of accident where someone else was to blame. However, you must do so within the legal time limit, called a statute of limitations.
Evidence is critical in winning a personal injury case or reaching a favorable settlement. It must be proven that the other party had a legal obligation not to harm others, breached this duty through negligence or recklessness, that this behavior caused or contributed to the accident, and that your injuries resulted from the accident.
Once you have enough evidence to prove these elements, a judge or jury can order the defendant to compensate you for your injuries. Alternatively, your attorney can negotiate a fair settlement with the defendant’s insurance company
Suffering from serious injuries can have devastating financial and personal impacts. They can alter the course of your life and your family’s lives. Though a lawsuit cannot erase the traumatic event, a financial settlement can ease the burden. It can cover hospital bills, prescription medication costs, ongoing medical treatment, and rehabilitation expenses.
Many people with strong legal claims choose not to pursue them because they feel overwhelmed by the legal system. However, you shouldn’t let this deter you from seeking the compensation you deserve. If you believe you have a case, consult with a lawyer to evaluate the situation. Most lawyers offer a consultation before requiring you to commit to their services. Thoroughly document the injury to increase the chances of a successful case.
How Does Pre-Settlement Funding Work with Apex Legal Funding?
If you're in the middle of a lawsuit, pre-settlement funding can help you cover medical bills and other expenses while you wait for your case to settle. In some states, pre-settlement funding is considered a lawsuit loan or advance and provided by licensed lenders. However, in most states, pre-settlement funding companies like Apex Legal Funding are not regulated as lenders and offer to purchase a portion of the potential proceeds from your pending legal claim. Here's how it works:
Pre-settlement funding works differently from traditional loans provided by banks or credit unions. In a typical loan process, lenders evaluate an applicant's credit score and financial history to determine whether or not to approve the loan. This process can take time, and a poor credit score could prevent an applicant from obtaining the loan.
Applying for pre-settlement funding is much easier. You can apply online or over the phone if you are a plaintiff with a pending legal claim and have hired an attorney. The funding company will ask for basic information about you, your case, and your attorney's contact information
Unlike traditional lenders, pre-settlement funding companies like Apex Legal Funding base their approval on the strength of your case rather than your financial standing. The funding company will speak to your lawyer to learn more about your case's details and decide if you qualify for funding. If you do qualify, the funding company will determine how much money to provide based on the case's value and the chances of a successful outcome.
With approval, however, you can use that money to pay medical bills and almost any other expenses that have come up as a result of the injury. For example, many people who get seriously injured are unable to work, so you may use the cash as wage replacement for a period of time until you can start making money again. The only expense you cannot use the funding for are any legal costs and expenses related to your pending legal claim. The amount you can get for pre-settlement or legal funding varies based on your specific case.
Understanding Pre-Settlement Funding
Pre-Settlement Funding Explained Pre-settlement funding, also known as legal funding, is a type of funding designed to assist plaintiffs with routine expenses and medical bills while their case is pending. Unlike traditional loans, pre-settlement funding is based on the strength of the case rather than the financial standing of the plaintiff.
For Apex Legal Funding, the decision to issue pre-settlement funding is a matter of risk management. The company evaluates the strength of the case and the chances of a successful outcome before issuing any cash or pre-settlement funding. This means that funding companies only take on the strongest cases.
If approved for funding, plaintiffs can use the money to pay medical bills and other expenses that have resulted from the injury. The funding can also be used as wage replacement for a period of time until the plaintiff is able to return to work. However, the funding cannot be used for any legal costs or expenses related to the pending legal claim. The amount of funding available varies based on the specific case.
Is Pre-Settlement Funding Right for You?
While pre-settlement funding is a great solution for some plaintiffs in ongoing personal injury litigation, it may not be the right option for everyone. If you have access to other funding sources, such as personal loans, lines of credit, or home equity, approaching a traditional lender may be a more affordable option in the long run. It's also worth considering short-term financial assistance from family or friends.
If you are unsure about whether pre-settlement funding is the right option for you, it's worth discussing your situation with your personal injury lawyer. Your lawyer can help you evaluate your options and determine the best course of action for your particular case.
In Pre-Settlement funding can be a helpful financial tool for plaintiffs who are struggling with the costs of ongoing personal injury litigation. By understanding how pre-settlement funding works and whether it's the right option for you, you can make an informed decision about how to proceed with your case.
Experts recommend that accident victims involved in personal injury litigation explore other options before considering applying for pre-settlement funding, as the potential costs of legal funding or a lawsuit loan can be significant. If you receive pre-settlement funding, you are responsible not only for the amount you receive, but also for any applicable fees. As personal injury cases can take a long time to resolve, these fees can add up quickly.
Ultimately, the decision of whether or not to pursue pre-settlement funding is a matter of personal risk management. Is it worth receiving the money you need in the short term if it means a significant deduction from your eventual judgment or settlement? Your answer to this question will depend not only on your legal and financial situation, but also on the provisions outlined in your funding agreement.
Despite the potential drawbacks, there are situations where pre-settlement funding can be very helpful. If you have run out of money and need additional funding to support you during your lawsuit, it may be worth considering with the guidance of your lawyer. Pre-settlement funding could be the lifeline you need to get you through this difficult period.
Apex Legal Funding provides pre-settlement funding, also known as consumer litigation funding, to its customers through different products depending on their state of residence or cause of action. Many customers will be offered pre-settlement funding in the form of a purchase agreement, which assigns a portion of the pending proceeds from their legal claim. Other customers, such as those in CO, IL, MN, MO, SC, WI, and some OK residents, may be offered a pre-settlement loan, sometimes referred to as a lawsuit loan. It is important for consumers to carefully review and be aware of the type of transaction being offered to them by any funding company, as these transactions can have significant differences.