Even after you reach a lawsuit resolution, your settlement award can take time to arrive in your hands. Bridging the financial gap while you await your settlement, post-settlement funding can support your cash flow and cover medical bills, lost income, legal fees, or any other everyday needs. Whether you were hurt in a car accident, involved in a class action, or have another legal claim, Fund Capital America in California can help.
What is Post-Settlement Funding?
Post-settlement funding, also known as settlement loans or advances, are a type of funding available to plaintiffs whose claims or lawsuits settle favorably. Following lawsuit settlements, administrative processes or legal procedures can delay the plaintiff’s access to their award. To help them cover living expenses, medical bills, or other financial obligations, post-settlement funding provides interim financial support with liquid cash based on the settlement amount.
Although often referred to as a loan, post-settlement funding functions as a non-recourse cash advance — plaintiffs can access funding risk-free. Since the settlement is already determined, the application process involves less scrutiny, and applicants can access post-settlement funding within a few days. Repayment terms vary, but plaintiffs typically pay the funds they’ve used, plus fees and interest, to the lender when they receive their settlement.
Types of Lawsuits That Qualify for Post-Settlement Funding
Post-settlement funding is available to eligible applicants for many types of lawsuits.
Personal injury
Personal injury lawsuits refer to accidents or incidents where plaintiffs suffer harm or damages due to the negligence or misconduct of others. These cases span many circumstances, such as wrongful death, slips and falls, workplace accidents, and assault, and they may necessitate personal injury lawsuit funding.
Medical malpractice
Medical lawsuits can involve a range of medical errors or negligence that result in harm to a patient, with liable parties being physicians, surgeons, nurses, hospitals, or healthcare organizations. Often incurring significant damages from lasting health effects, these cases may require medical malpractice lawsuit funding.
Automotive accidents
Automotive-related accidents are one of the most common types of lawsuits, especially in Los Angeles, which has one of the highest rates of car accidents. Most of these incidents involve negligent driving behavior resulting in injury to other motorists, cyclists, and pedestrians.
In some cases, commercial trucking companies are responsible for accidents involving large transport vehicles. Automotive companies or manufacturers may also be liable for automotive accidents and injuries if they occurred as a result of a defective vehicle component.
Product liability
Plaintiffs can claim product liability settlements from manufacturers, distributions, designers, sellers, and other parties representing stages of the supply chain. Damages in these cases can stem from a variety of circumstances, such as faulty or unsafe design, insufficient disclosure, or product malfunctions.
Class action
Class action lawsuits often involve significant settlement amounts and extended legal proceedings. Members of class action lawsuits may wait years for their settlement award and opt in for class action lawsuit funding as they wait.
Lawsuit Funding Requirements: Who is Eligible?
Post-settlement lawsuit funding comes with specific eligibility requirements. Only plaintiffs and civil claims can access post-settlement funding — defendants aren’t eligible.
These cash advances are only available to plaintiffs who’ve reached a settlement agreement but haven’t received their funds. For example, if your insurance company has approved your claim and issued a settlement offer, you may be able to access post-settlement funding.
How to Get Post-Settlement Lawsuit Funding
Securing post-settlement funding involves several steps to verify eligibility. The process for getting post-settlement funding typically includes:
- Settlement offer documentation: Before anything else, you must have a finalized settlement agreement for your lawsuit. This agreement should detail the settlement’s amount, the payment schedule, and other relevant payment terms.
- Contacting a lender: Contact a reputable post-settlement funding provider with a history of transparent and fair cash advance practices. Discuss your case with them and get their insight on specific information or documentation required for their application process.
- Submitting an application: Applications vary, but they generally require settlement agreement details and terms, your financial needs, and contact information for your attorney.
- Evaluation: The post-settlement funding company will evaluate your application and determine the appropriate cash advance amount based on your expected settlement amount and financial need.
- Offer and agreement: The company will present you with a post-settlement funding offer detailing the amount they’re willing to lend, fees, interest rates, and repayment terms. Go over these details with your attorney to ensure it’s the right option for you.
- Disbursement: Once you agree to the post-settlement funding, your provider will disburse the amount to you within a few days. You won’t have to repay the funds until your settlement arrives.
Post-Settlement Funding vs. Other Legal Funding Options
With high rates of approval and quick delivery for eligible applicants, post-settlement funding is an appealing option for plaintiffs who need liquid cash to cover medical bills, lost income, or other expenses. Since it’s a risk-free and non-recourse loan, you won’t be responsible for repaying the loan should the defendant fail to pay the settlement amount. Depending on the applicable fees or interest rates, however, post-settlement funding can reduce your finalized settlement amount after deductions.
Plaintiffs in need of funds may also access other litigation funding options, such as pre-settlement funding. Like post-settlement funding, pre-settlement funding provides a cash advance to plaintiffs, but before the lawsuit resolution instead of after. This type of funding may be less accessible and come with higher fees as it’s based on the strength of the case and the expected settlement amount, but it also carries the same risk-free non-resource terms. Lawsuit loans also don’t require payment before you receive settlement, but they also evaluate your credit and may set higher interest rates than other options.
Get Financial Support From Fund Capital America
With our experts on-hand at Fund Capital America in Los Angeles, you can receive your post-settlement funding in as little as 24 hours. Rely on us to help ease financial burdens with risk-free post-settlement funding. Contact us to learn more or apply online today.
Frequently Asked Questions
What are the most common malpractice claims?
Most malpractice lawsuits are based on misdiagnosis or delayed diagnosis, prescription drug errors, or failure or errors in treatment.
How much are personal injury settlements?
Personal injury settlement awards can vary greatly, with some as low as $5,000 and other cases with severe harm or damages totaling millions of dollars.
How long does settlement disbursement take?
Settlement disbursement can vary depending on administrative and legal processes. Most are about a month or more, while others may take years.
