A personal injury can have physically and financially devastating ramifications, both of which may render you unable to work and, therefore, unable to afford your quickly mounting medical expenses. Without proper medical care, your injury is at risk of growing worse, which can substantially set back your recovery date. The longer it takes you to recover, the longer you must live on a reduced or no income – a situation that can drive you into insurmountable debt.
The good news is that the law entitles you to collect compensation for your damages from the at-fault party via a personal injury claim. The bad news is that personal injury claims and lawsuits can take years to settle. Defendants drag out personal injury lawsuits in the hopes that plaintiffs will settle for far less than what their cases are worth — which, sadly, is just what many desperate injured persons and their families do. With lawsuit funding, however, you do not have to decide between recouping the maximum amount of compensation or living in comfort while you recover. You can have the best of both worlds, at no risk to your current or future financial standing, through lawsuit loan companies.
Lawsuit funding — otherwise known as plaintiff funding, legal funding, personal injury funding, and pre-settlement funding — is a type of financing that can help you bridge the gap between your accident and the finalization of your case. With a pre-settlement cash advance, you borrow against the award or settlement you anticipate winning rather than against your existing assets or funds. Moreover, legal funding companies, including our team at NY Legal Funding, do not qualify you based on your finances or credit score. Instead, they assess the merits of your case and determine its value. If a lender determines your case has a strong likelihood of success, it may allow you to borrow up to a certain percentage of the award.
Pre-settlement funding offers several benefits over traditional types of funding from banks and other conventional lenders. In addition to not requiring credit verification or proof of employment, pre-settlement funding comes with a few enticing benefits:
The biggest benefit of a pre-settlement loan, however, is that it provides you with the cash you need to keep fighting for just compensation. With a cash advance, you do not have to worry about how you will continue to pay your lawyer, put a roof over your head, or receive appropriate medical care while your case drags on. You can meet your financial obligations with ease and without sacrificing the integrity of your claim.
You can use legal funding just as you would a traditional personal loan. What this is means is that you can use the cash for any expenditure you deem necessary or important. Though the definition of “necessary” differs for every injured party, common examples of how plaintiffs use their funding are as follows:
Lawsuit funding companies don’t put limitations on how you may use your personal injury financing. However, bear in mind that though you do not have to technically repay the loan from your personal finances, what money you do borrow will come out of your award.
Because pre-settlement funding companies assume most of the risk on personal injury financing, they typically only lend plaintiffs up to a small fraction of the total anticipated settlement. For instance, at NY Legal Funding, we extend to approved applicants between 10% to 20% of the estimated value of their settlements. However, the specific amount we lend depends largely on the circumstances of a case. Specifically, we look to the following factors to ascertain our risk in lending to an applicant:
A pre-settlement funding company must first assess the details of your case and financial burden before giving you an estimate of your loan amount.
At NY Legal Funding, we care more about the strength of your case than the type of accident that triggered it. Because of this, we routinely extend legal funding to victims embroiled in the following types of cases:
Though we do not consider accident type when determining your eligibility for plaintiff funding, we will consider other factors. For instance, we ask that you be at least 18 years of age, have already filed a personal injury claim and have already hired a contingency-based attorney.
If lawsuit funding sounds like something you can benefit from, it cannot hurt you to schedule a no-obligation free consultation. Our team is also more than happy to answer any questions you may have, address your concerns and provide you with the information you need to make the best decision for your health and your family. To schedule your free, no-obligation case evaluation, submit a request online today.