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Pre Settlement Funding | 10 MIN READ

Pre Settlement Funding Loan: Is It For You?

Technically speaking, Pre settlement Funds aren't loans. They are cash advances on future settlement money and are designed to provide you with must-have cash when you need it most.

Do you have an important lawsuit pending? Do you need to pay your lawyer or living expenses while you wait? Are you curious about pre-settlement funding loans?

Pre-settlement funding is designed to provide you with must-have cash when you need it most.

Here’s what you need to know about pending lawsuit loans.

What Are Pre Settlement Funding Loans?

Filing a lawsuit can be time-consuming and expensive. Pre-settlement loans allow you to take out the money you need to cover costly legal expenses before matters are finally settled.

Pre-settlement funding happens when a court grants plaintiffs advanced money before a final decision is made. The company you’re borrowing money from will probably require documentation. This could include medical records and information about your attorney. 

Should you win your case, the amount you borrowed will return to the lender. You’ll also owe them any charges and fees you agreed to. This type of arrangement involves lenders investing in lawsuits in order to secure a portion of the settlement. So technically, they are not loans, but cash advances on future settlement money.

Getting the Money You Need When You Need It

Lawsuits are time-consuming and expensive. You need to think about all of the funds you’ll need just to meet your own needs right now.

You’ll need to pay the rent, pay your lawyer, and take care of your medical bills. In addition, you may have utilities or college tuition to keep in mind. 

With a pre-settlement loan, you can receive your money in a lump sum, or you can get monthly payments to meet your expenses. This will be clearly outlined in your paperwork. And any money you desperately need will be provided to help you make ends meet.

You Won’t Need to Pay Back If You Lose

If you aren’t awarded a judgement or settlement at the end of your case, you won’t need to pay back a pre-settlement loan amount. This is why many folks prefer them when they’re going through a lawsuit, as opposed to a bank loan or credit card. You will only need to pay back the pre-settlement amount if you win.

This is the biggest risk your lender is taking when they agree to grant you the loan. It’s also why they will be careful about who they’ll lend money to.

You’ll Need to Get Approved

In order to get approved for pre-settlement funding, you’ll need to prove that your case is on solid footing. The lending company will investigate your case and make an assessment of its value and your likelihood of being awarded a judgement or settlement. They’ll also want to estimate its timeline.

If it doesn’t seem likely that your case will win, or that you’ll be awarded much, it will be difficult to secure pre-settlement funding. You’ll need to look into other means for temporary cash. Some plaintiffs find they need to apply to several different lending companies before they find someone who will grant them a loan. 

You Could Increase the Value of Your Case

A pre-settlement loan can give you the cash you need to meet your immediate needs. This means you will be in no rush to push your case to settle more quickly so you can get an early payout.

You may be able to secure a higher settlement amount if you’re willing to hold out longer. A pre-settlement loan could put you in a financially advantageous position. If you don’t feel that your settlement is fair, a pre-settlement loan could also provide you with the means necessary to wait while the case goes to trial.

Pre-Settlement Loans Aren’t Regulated

There are only a few states where pre-settlement loans are actually regulated. These include Maine, Nebraska, and Ohio. 

Without regulations, companies can charge any interest rate they like for your loan, and you won’t be able to complain to a regulator if something goes wrong.

This is why it’s important to shop around for a good interest rate and low fees when it comes to your lender. Various companies, however, may have different loan criteria and discloser policies.

It’s quite important that you understand the terms of any loan you agree to. In some cases, you may need legal assistance to make sure you’re clear.

You Won’t Need To Pay Back Until Your Case Settles

One of the best parts of pre-settlement loans is that you won’t need to pay your lender until your case settles and you win. This means you won’t have to worry about paying back the money you borrowed until you’re positive you have it available.

Fund Away

Pre-settlement funding loans can be a great way to get the cash you need while you wait for an important case to settle. Before applying for one, however, you’ll need to carefully weigh the pros and cons. You’ll also need to shop around for a reputable lender who can best meet your needs.

Don’t stop learning about pre-settlement loans now. For quality pre-settlement funding, you can count on, contact us today. 

 

 

Pending Lawsuit Loans

A pending lawsuit loan is a cash advance granted while a case that a plaintiff has already filed awaits a final court judgment. It can be any civil case, such as a personal injury lawsuit like medical malpractice or car accidents.

In 2019, the annual average consumer expenses in the US amounted to $63,036. That translates to a daily expenditure of $173. 

As a personal injury victim wronged by another, you’re likely low on funds and can’t cover these costs. What’s more, you likely incurred medical and hospital bills. Your health also suffered so much that you have to stay at home to recuperate.

You may be receiving benefits, but keep in mind that there’s a limit to such aid. Your bills will just continue to pile and grow.

Pending lawsuit loans can cover all these expenses for you. If you’ve made a valid legal claim against another, you can get the funds you need now.

What exactly is a pending lawsuit loan, though? How does it work, and can you apply for one?

We’ll answer all these questions in this comprehensive guide, so be sure to read on.

What Does “Pending Lawsuit” Mean?

A pending lawsuit is a case that a plaintiff has already filed but is still awaiting a final court judgment. It can be any civil case, such as a personal injury lawsuit like medical malpractice or car accidents. So long as the legal action remains “on-going,” then it classifies as a “pending lawsuit.”

Let’s say that you underwent surgery, and the surgical team committed a medical error. The grievous mistake they made has caused your health to worsen further. Instead of getting better, their blunder has resulted in more medical bills on your part.

In the above situation, it’s your every right to file a medical malpractice lawsuit. Know that these are common cases, so much so that about one-third of physicians have faced one.

In any case, as soon as your lawsuit is in a court docket, it’s already a “pending lawsuit.” It remains that way until the court issues its final judgment.

What Then Is a Pending Lawsuit Loan?

A pending lawsuit loan, also known as “litigation funding,” is more of a cash advance on a lawsuit than an actual loan. The plaintiff (the party who filed a claim or a lawsuit) advances against a pending settlement. The advance can be a portion of or an amount equivalent to the total settlement amount, minus lender fees.

You may have also heard of pending lawsuit loans called “pre-settlement funding.” That’s because a “borrower” receives funding even before the court finalizes the settlement. This means that you can acquire access to a portion of your expected settlement.

So, even if your lawsuit is still pending, you may be eligible for a cash advance so long as your case has strong merits.

You can use the proceeds of your cash advance to pay for all your bills and needs. You can use it for your house or rent, buy groceries, refill your prescription, or pay your utilities.

How Does a Cash Advance on a Pending Lawsuit Work?

A pending lawsuit loan is a purchased interest on a legal case’s expected proceeds. The litigation financing company then pays the claimant directly for the purchased interest. Once the court concludes the case, the lender then gets paid out of the settlement amount.

Suppose you already have a pending lawsuit, and your attorney expects you to get a $20,000 settlement. However, the court is still deliberating a verdict, which can take a few weeks to several months. Many personal injury cases conclude in about a year (or less), but some have even taken a decade to finalize.

Either way, you have to wait for your settlement, but your bills and needs won’t. At this point, you should consider applying for a pending lawsuit loan. Once approved by the pre-settlement funding company, you can get the funds in as little as 24 hours.

It’s only upon the conclusion and receipt of your settlement that you pay back the lender. If you don’t win the case, you are under no obligation to repay the pre-settlement funding company.

What Are the Requirements for Pending Lawsuit Loans?

The primary requirement for pre-settlement funding is a valid, pending lawsuit. This means that you’ve already sued another person or entity, and your case is already in a court docket.

Another chief requirement is that you’ve already retained a state-licensed attorney. Your lawyer, in turn, should be working on a contingency basis. Meaning, your attorney agreed that you only pay them for their services if they win your case.

Your case should also have strong merits. This means that your lawsuit has a high possibility of a successful conclusion. Remember: you don’t pay back a lawsuit loan if you don’t win, so the lender assumes a lot of risks.

So long as you meet these three requirements, you’re likely to get approved for a pending lawsuit loan.

Why Not Take Out a Traditional Loan Instead?

Pending lawsuit loans differ from traditional loans in terms of requirements. As you might have noticed, the requirements listed above don’t include credit scores. That’s because pre-settlement funding companies don’t need to know this, unlike banks.

Keep in mind that as many as 76% of personal loans, such as those from banks, get denied. One of the chief reasons is that the borrower has a low or poor credit score.

Moreover, pending lawsuit loans don’t require monthly repayments, unlike a personal loan. You might not even have to pay back the lender at all if your case doesn’t win. If it does, then that’s the only time you need to pay back the pre-settlement funding company.

Tap Your Expected Settlement With a Pending Lawsuit Loan Now

As you can see, pending lawsuit loans offer a welcome reprieve to personal injury victims. So long as you have a valid, meritable lawsuit and an attorney, you can qualify for a lawsuit cash advance. The pre-settlement funds you receive can help you get through as you await your case’s verdict.

If you or a loved one has an active personal injury lawsuit, please know that our team here at USClaims can help. Apply for pre-settlement funding now so that you can get access to funds as soon as possible.

Don't wait for your money!

Obtain funds while your case settles.

Should You Apply for a Pre-Settlement Fund?

Pre-Settlement Fuds are a great option if you're struggling to make ends meet and need quick cash. Best of all, you can pay back the loan when you get your settlement.

Are you in the middle of an insurance case? Perhaps you’re filing a lawsuit, and you’re short on funds. 

Regardless, a pre-settlement fund can help you. Pre-settlement funding will provide a lump sum based on the value of your case. An underwriter will evaluate your case and grant you an appropriate sum.

It’s a great option if you’re struggling to make ends meet and need quick cash. Best of all, you can pay back the loan when you get your settlement.

This article will help you determine if a pre-settlement cash advance is right for you. Let’s dive in. 

The Insurance Process

Insurance companies want to close cases as soon as possible. In some cases, carriers could prolong the process intentionally, and disputes may arise. When it comes to personal injuries, for example, insurance companies will scrutinize your injuries during an investigation.

They will also carefully assess severe injuries that require long-term care. Overall, it normally takes around three months to settle an insurance case. The process may take longer depending on a variety of factors, such as:

  • The nature of your injuries 
  • The extent of the property damage 
  • The insurance negotiation process

Insurance negotiations require the assistance of an attorney. That said, attorneys can be expensive, and they usually charge upfront. Plus, attorney-involved negotiations with insurance companies can last weeks or months. 

In some cases, insurance settlements can take longer than three months. This is where pre-settlement funding can help you.

The Importance of a Settlement Advance 

A cash advance can help you cover your immediate needs (utility bills and rent/mortgage) until you receive your settlement. Lenders don’t impose restrictions on how you can use the funds. In addition to living expenses, a settlement advance can help you pay for ongoing attorney fees or any other expense related to your insurance case. 

An advance will also keep you afloat if you’re holding out for a higher settlement. 

  • Example: If you’re tight on money, you may be tempted to accept the first offer from an insurance company. If you reject the first offer and take out a cash advance, an attorney can get you a higher settlement at a later date. 

As such, the short-term loan from a pre-settlement fund can get you more money in the long-run. In many cases, insurance companies offer low payouts, hoping victims are desperate enough to take the money.

With an advance, however, you can gain the upper hand. When you get a higher settlement, you’ll have enough money to pay off the loan, and you’ll have additional money for your living needs. 

Attorney Fees

Expect to pay a costly rate for an attorney. Be wary of attorneys who offer cheap rates, as they may not have the experience to handle your case properly.

If possible, hire a seasoned attorney who has handled cases similar to yours. With that, experienced attorneys are usually more expensive. Attorney rates break down as follows:

  • Hourly Rate: Attorneys usually charge between $75 to $1,000 an hour. 
  • Retainer Fee: A retainer fee is a certain amount of money paid to the attorney up front. The lawyer may add up the hourly rate and combine it in a lump sum. 

Expensive attorneys are more likely to wrap up a case quickly to spare the client from exorbitant fees. However, your case may drag on longer than you’d anticipated. 

The Legal Process

If an attorney fails to make headway during negotiations, they could recommend a civil lawsuit. The problem is that a civil lawsuit comes with various upfront costs.

The court expenses can vary by location, but a complaint filing fee can range from $40 to $300. Motion filing fees can stretch from $40 to $150. 

The depositions process can cost around $1,000 or $2,000. The deposition process entails interviewing witnesses.

Further, you must pay the cost of hiring a reporter to transcribe the proceedings. Plus, you may have to pay for any additional copies that you need from the defendant. Copies can cost around $200 to $300.

An attorney may also recommend professional witnesses, such as doctors, engineers, mental health professionals, or car accident reconstructionists. The cost of expert witnesses can range from $200 to $600. Finally, you may need to pay $700 if you lose the case and must appeal. 

Overall, a civil lawsuit can cost $10,000 or more, and the lawsuit cost doesn’t include attorney fees. Plus, a civil lawsuit may take up to a year to conclude, leaving plaintiffs with no income in the meantime.  

All too often, victims cannot afford to file a lawsuit due to the attorney and court fees. Further, many victims who cannot afford to work can lose everything.  

Don’t miss out on the compensation needed to heal your injuries and pay your living costs. A settlement advance can give you the breathing room you need as you go through the civil process.

A loan can help you pay attorney costs and court fees. If your case stretches further than expected, you can continue paying your attorney until the case ends.  

Additionally, an advance allows you to focus on your case so you don’t have to worry about your living situation. 

Is a Pre-Settlement Fund Right for Me?

A pre-settlement fund is the best choice for long-term insurance or court cases. Insurance cases can last for months, leaving victims strapped for cash, and civil trials can last longer.

An advance can support you until you receive your money. Funds can even help you obtain a higher settlement. 

Want to know more about increasing an auto accident claim? Click here to learn how to document an auto accident. 

Related Topics

How Do You Apply for a Pre-Settlement Funding Loan?

Pre-Settlement Fuds are a great option if you're struggling to make ends meet and need quick cash. Best of all, you can pay back the loan when you get your settlement.

In June 2020 alone, US courts received and processed 58,664 new civil filings. That’s a staggering 80.5% jump from the cases filed in the same month of 2019. What’s more, it represents a 99% increase from June 2015!

A pre-settlement funding loan, in such cases, can act as a financial bridge for plaintiffs. They let personal injury victims tap their expected settlement much earlier. Plaintiffs can access their case’s proceeds even before the court issues the award.

The big question now is, how exactly do you apply for pre-settlement funding?

These are some of the steps when applying for a Pre Settlement Funding: 

  • Consult With an Attorney
  • Retain an Attorney on a Contingency Fee Basis
  • Apply for a Pre-settlement cash advance online
  • Wait for your Pre-settlement Funds
  • Pay the Pre-Settlement Funding Company

 

Consult With an Attorney First

It is your every right to sue another person or entity who wronged or injured you. This way, you can recover damages and losses that their actions and behaviors caused. Depending on your case, you can pursue them for compensatory and punitive damages.

With that said, one of the chief requirements of pre-settlement funding is to have a valid lawsuit.

However, your chances of winning the lawsuit depend heavily on an attorney. For starters, self-represented plaintiffs have at least 200 “discrete tasks” to carry out. Filing with the right court, interpreting laws, and getting evidence are just to name a few.

So, imagine how confusing and lengthy the process can be if you represent yourself in court.

What’s more, a single mistake can result in your case getting dismissed. A perfect example is a Fair Housing lawsuit. If you go at it alone, meaning you don’t have an attorney, you’re at a high risk of losing your home.

As a previous study has shown, almost four in 10 unrepresented tenants lose their cases. Whereas 96% of tenants who lawyered up won or settled their cases.

That’s why it’s essential that you speak to an attorney as soon as you get wronged by another. This way, they can look into your case and determine if it has a high potential for success. If it does, then they’re likely to take on your case and represent you in court.

Your attorney will then carry out the bulk of the legal tasks you would’ve otherwise done on your own. You, in turn, can concentrate on your health and recovery. 

Retain an Attorney on a Contingency Fee Basis

A contingency fee is a payment for legal services paid only to an attorney who wins a case. So, if the lawsuit isn’t successful, the plaintiff doesn’t have to pay the attorney. If the case does win, then that’s the only time the plaintiff pays the attorney fees.

An attorney retained on a contingency fee basis is a pre-settlement funding requirement. One reason is that it’s a form of assurance that plaintiffs can pay back their pending lawsuit loans. After all, attorneys are unlikely to agree on a contingency fee if they don’t think the case will win.

Apply for a Pre-Settlement Funding Loan Online

Once your attorney has filed the lawsuit, your case now classifies as a “pending lawsuit.” This means that you can already apply for pre-settlement funding. Best of all, you can begin the application for a lawsuit loan online.

The initial online application itself can take as little as 60 seconds to complete. You just have to provide your complete name, e-mail address, contact info, and case type. You can provide additional information about your case, too.

Once you complete the online form, you only have to wait for the lender to review your case. One of the lender’s representatives will also call you to discuss your lawsuit. So, be sure that you keep your lines open to take their call. 

After this, the lender will then notify you about the approval of your application. If you’re eligible for a cash advance, you’ll get a purchase agreement from them.

You should speak to your attorney and review the offer with your legal counsel. If your lawyer finds it agreeable, then you only have to respond to the lender’s offer.

Wait for Your Pre-Settlement Funds

After you agree to the purchase offer, the lender will begin to process the fund transfer. This can take as little as 24 hours. So, you can expect to receive your pre-settlement funds as early as the following day.

You can then use your pre-settlement funds for virtually anything you need. If you have pending mortgage or rental payments, you can use the funds to cover them. You can also use the cash to pay for your hospital, medical, or utility bills, as well as your groceries.

Pay the Pre-Settlement Funding Company

One of the primary advantages of lawsuit loans is that they’re non-recourse. This means you don’t have to pay back the loan if you end up not winning your case. The lender, having assumed the risk, won’t pursue you for repayment.

It’s also because of this agreement that you don’t have to worry about monthly payments. You only have to pay the pre-settlement funding company once, and that’s only after you win your case.

Get Back on Your Feet With a Pre-Settlement Cash Advance

There you have it, your ultimate guide on how to apply for a pre-settlement funding loan. As you can see, it’s pretty straightforward, not to mention very convenient. So long as you have an attorney on a contingency fee and a valid, meritorious case, then you can apply for a lawsuit loan.

If you need access to funds now, we here at USClaims are more than happy to help. Complete this short online form now so that we can get started on reviewing your case.

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