Lawsuits, especially personal injury cases can take time to settle. During the course of the claim and while in treatment , you will experience loss of income while you encounter countless expenses that will eventually affect your finances. In situations where you are already dealing with a legal issue, it is even more difficult if financial responsibilities also add up.
One solution to help alleviate the pressure of coping up with your expenses is to take a lawsuit loan. This blog post will explain what a lawsuit cash advance is and how it can help people dealing with personal injury loans.
What is a Lawsuit Cash Advance?
A lawsuit cash advance, also known as a pre-settlement funding, is an option taken by plaintiffs who are waiting for the resolution of their case. Typically, it functions as an advance on a potential settlement or award. Generally, this funding is helpful for individuals involved in ongoing claims which may lead to litigation who anticipate a financial payout but require immediate funds to continue pursuing their case.
You can only take a loan once you’ve filed a claim. Most people apply for this when they have to file a case because of injury inflicted on them – vehicular accidents such as car accidents including rideshare like Uber or Lyft, motorcycle and bicycle accidents, premises liability or slip and fall accidents, and dog bites or attacks.
A cash advance for a lawsuit differs from a traditional loan because it is classified as a non-recourse loan. Therefore, lawsuit funding companies who offer pre-settlement cash advances take the risk that the plaintiff may not win the case and acknowledge that they may not get paid back.
The Process of Securing a Lawsuit Cash Advance
Check the eligibility requirements
Every pre-settlement funding company has their own requirements. Do your research and check before heading to their office. One important thing to consider is the merit of your case, then, you can choose a funder that has the eligibility requirements closest to yours.
Work with your attorney and avoid other third party facilitators
Your attorney should be your primary ally when considering a pre-settlement cash advance. Ideally, your law firm is already aware of your financial needs and can provide you with specific, trusted options. Relying on brokers or other third-party facilitators can complicate the process and increase the risk of sharing sensitive case information with multiple lenders. Your attorney, who knows the full details of your case, can help you avoid these risks and streamline your application process.
Moreover, with your law firm’s support, you can secure the necessary financial boost to sustain yourself throughout a lengthy legal process, ensuring that you and your attorney can see the case through to a successful conclusion.
Understand the funder’s process and interest rates
Before signing any dotted lines on the application form, ask all the questions you have about the legal funder’s process – from pre-qualification to approval. Another important thing to discuss with them is their interest rates or usage fee. In addition, ask for the full computation and a complete disclosure of any extra charges they have – processing, penalties, and other service charges.
Notify your lawyer before sending a full application
Your lawyer will be the one responding to any questions that the company may have about your case. It can expedite the approval of your loan if your legal counsel can prepare the answers to pertinent questions and explain your case properly.
Pre-Settlement Funding in California
Pre-settlement funding in California can be a lifeline for plaintiffs waiting for their personal injury cases to resolve, especially considering the state’s statute of limitations and its delayed discovery rule.
The California Code of Civil Procedure 335.1 states that a personal injury lawsuit must typically be filed within two years of the accident. However, some injuries, such as those affecting the neck, back, or head, may not manifest immediately. California’s delayed discovery rule allows plaintiffs to file a lawsuit within one year of discovering an injury, providing some flexibility for those who experience delayed symptoms.
California’s ‘at-fault’ laws and the ‘pure comparative negligence’ statute significantly influences the legal landscape. This statute is particularly important when considering pre-settlement funding, as it allows accident victims to seek compensation even if they bear most of the responsibility for the incident.
For instance, if a plaintiff is 40% at fault in an accident with $50,000 in damages, they would be entitled to recover $20,000. Understanding this comparative fault principle is crucial, as it directly impacts the potential compensation amount and funding eligibility.
Common Myths About Lawsuit Cash Advances
You will owe a huge amount of money if you lose
Unlike traditional loans, where the principal amount increases due to the accrued interest, pre-settlement cash advances do not have interest and do not require repayment if you do not win the case.
It might be unbelievable, but this is due to the careful research and decision-making that the lending company does before approving cash advance applications.
A high credit score is needed
When it comes to lawsuit funding, you don’t need a high credit score. The legal funding company does not check your credit rating because the payment will not come from your personal finances but rather from the proceedings of your case.
Your whole settlement check will just be enough to pay the cash advance
This is not the case if you choose a lender that is transparent about their calculations. When deciding what funding company to file a cash advance application with, choose the one who is willing to explain the process and their fees. Transparency is very important when it comes to obtaining cash advance for a lawsuit.
Lawsuit funding companies get involved with your case
A lawsuit funding company helps the plaintiff through a cash advance. They do not get involved in any decision-making about your case. Apart from granting you access funds, they have no other participation. Everything else remains confidential between you and your lawyer.
Final Thoughts
Dealing with a personal injury lawsuit can be financially and emotionally challenging, especially when waiting for a settlement that could take months or even years. A lawsuit cash advance can be a valuable resource during this time, providing you with the funds you need to cover expenses without adding to your financial burden.
However, it’s crucial to approach this option with a clear understanding of the terms, risks, and implications for your case. Working closely with your attorney and choosing a reputable funding company, can guide you to making informed decisions that align with your best interests. Remember, this financial tool should support you, not complicate your situation, so take the time to explore your options and choose wisely.
Fund Capital America: Lawsuit Cash Advance Services
At Fund Capital America, we understand the challenges you face in the aftermath of accidents. Whether it’s an automobile collision, pedestrian knockdown, motorcycle or bicycle accident, burn injury, nursing home negligence, or even police brutality, we’re here to provide the financial support you need.
If you’re involved in legal issues that are not your fault, let us help you get the justice you deserve. Contact us today to discover how our pre-settlement funding can ease your financial burden and support your legal fight.
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