Does it seem like the end of your car accident lawsuit is nowhere in sight? You’re not alone. Some people wait years for these cases to settle and face financial hardships as a result.
That’s why pre-settlement funding is an avenue worth exploring. Many lawsuit funding companies in New York offer financial relief to accident victims riding out the legal process. This guide aims to answer common questions like “How does pre-settlement funding work?” and “How do I qualify for a cash advance?”
Understanding the Car Accident Lawsuit Timeline
The National Highway Traffic Safety Administration reports that car accidents injure 4.5 million people and cost the U.S. $340 billion annually. Those injured in a crash due to a negligent driver or defective car part may decide to take legal action. However, the process can be lengthy and uncertain.
Plaintiffs and their attorneys have to collect evidence, calculate damages, and negotiate with insurers in hopes of reaching a settlement. According to a report published by Forbes, the average personal injury lawsuit takes 11.2 months to settle. Some cases take even longer to resolve if neither party agrees to settle.
When a case goes to trial, it extends the timeline even more. If the court has an extensive backlog of cases, it may be years before parties can achieve a resolution. Long-term accident claims may lead plaintiffs to contact lawsuit funding companies in New York.
The Role of Lawsuit Funding
When you file a personal injury claim after a car accident, there’s no telling if or when you’ll receive financial compensation. You could eventually accept a settlement offer after months of working with a lawyer and letting them negotiate on your behalf. If initial negotiations are unsuccessful, the court may schedule a trial for several months later.
In the meantime, you still have bills to pay. What if you need immediate financial relief but a possible settlement is still months away? A pre-settlement loan might be the solution.
Pre-settlement funding involves a third-party company taking an interest in your case. If they review your legal arguments and believe you’ll receive a certain financial reward, they may offer you a cash advance. You can then use these funds to cover any necessary expenses while your case is still pending.
Explore the Benefits That Pre-Settlement Funding Companies Offer Plaintiffs
Why consider legal funding when you could take out a traditional loan after your accident? This option has many unique advantages for plaintiffs in car accident injury cases. Check out some impressive pre-settlement funding benefits below.
A Straightforward Application Process
Some people are reluctant to apply for traditional loans because the process often includes a credit check. According to FICO, the average credit score in America is 715. For those with lower scores, the loan approval process can be daunting.
One major advantage of applying for legal funding is that the decision isn’t based on your financial status but rather the strength of your case. Poor credit history won’t deter pre-settlement funding companies from financing your case. Instead, professionals review key details of your case and speak with your attorney to decide whether you qualify for a cash advance.
The process usually takes a few days. Once approved, you could receive a cash advance within 24 hours.
Financial Flexibility
Data from Bank of America shows that roughly 25% of U.S. households are living paycheck to paycheck. A car accident could bring about more financial hardships, especially for victims who require extensive medical care or are unable to work due to their injuries. A lawsuit loan can help them stay on top of their bills as they await a potential settlement.
Approved applicants can use this funding for any purpose, including paying for the following expenses:
- Hospital bills
- Transportation costs
- Rent or mortgage payments
- Groceries
- Utility bills
- Other loans
Pre-settlement funding could help someone stay in their home or put food on the table.
No Repayment Plans
You might be wondering when you have to start making monthly payments back to your lender. A key advantage of legal financing is the absence of a monthly repayment plan. Once you’re approved and receive a cash advance, you don’t have to worry about repayment before your case resolves.
You can pay back the loan using money from a potential settlement or court-mandated financial reward. Depending on your case’s unique circumstances, this could happen months after you first apply for funding.
What happens if you lose your case? Like personal injury lawyers, many lawsuit funding companies operate on a contingency fee basis. They may only require payment from plaintiffs who receive a financial reward.
See Whether You Qualify for a Lawsuit Loan From Apex Legal Funding, LLC
If you’re on the fence about choosing a car accident lawsuit loan over a traditional loan, weigh the pros and cons of each option. For many people, pre-settlement funding is the ideal choice given its many benefits.
Will you qualify for a cash advance? Find out by contacting Apex Legal Funding, LLC. Submit our online application form or call 1-800-377-4934 to learn more about our services.
Frequently Asked Questions
Below are answers to some common questions regarding legal funding for car accident lawsuits.
How Does Pre-Settlement Funding Work?
Pre-settlement funding provides cash to plaintiffs with pending lawsuits if a lender believes the victim is likely to settle their case for a certain amount.
How Can You Settle a Case Quickly?
You may be able to settle a case quickly if you enter negotiations with an open mind. However, speeding up injury settlements isn’t always possible, particularly in cases set to go to trial.
Do Lawsuit Funding Companies in New York Always Offer Cash to Plaintiffs?
No, lawsuit funding companies only provide money to those whom they believe are likely to settle or win their personal injury case.
Are There Restrictions for Using Pre-Settlement Funding?
No, plaintiffs who receive pre-settlement funding can use it to cover any necessary expenses, such as housing or medical costs.