You’re involved in a personal injury lawsuit and struggling to pay bills while waiting for your case to settle. The mounting medical expenses, lost wages, and daily living costs create overwhelming financial pressure during an already stressful time.
Pre-settlement funding can provide financial relief to plaintiffs during lengthy legal proceedings, but the amount you can access depends on several critical factors. If you’re facing financial hardship during a pre-settlement accident lawsuit in New York, this type of funding can provide crucial support. In this guide, Apex Legal Funding, LLC, will explain the key elements that determine your pre-settlement funding amount.
What Is Lawsuit Funding?
What is lawsuit funding exactly, and how does it differ from traditional loans? Lawsuit funding provides cash advances to plaintiffs based on their expected settlement amounts, with repayment only required if you win or settle your case.
Pre-settlement accident lawsuit funding helps injury victims cover essential expenses while their legal proceedings continue. Lawsuit funding companies evaluate your claim’s merit rather than your financial history.
Factors That Lawsuit Funding Companies Consider When Determining Offers
According to Verified Market Research, the pre-settlement lawsuit funding market size was valued at $17.8 billion in 2023 and is expected to reach $67.5 billion by 2031, which shows how much this market is already growing to accommodate injury victims in need of financial support.16.3 million civil cases were filed in state courts in one year, highlighting the vast number of plaintiffs who may qualify for pre-settlement funding during their legal proceedings.
Understanding lawsuit funding criteria helps you meet the requirements for approval. But, how much funding can you potentially qualify for? Lawsuit funding companies typically consider the following factors:
Case Strength and Likelihood of Success
The strength of your case serves as the foundation for pre-settlement funding decisions. Funding companies carefully evaluate the evidence supporting your claim because they are only paid if you win or settle your case. Cases with strong evidence and higher likelihoods of success present lower risks for funding providers.
According to the U.S. Department of Justice, when a qui tam case succeeds, the whistleblower is usually awarded 15% to 30% of the total recovery. These types of statistics often play a key role in determining offer amounts.
Expected Settlement Value and Damages
Your anticipated settlement amount directly impacts how much funding you can access. Experienced funding companies provide a portion of your case’s estimated value based on various factors.
Several types of damages contribute to your case’s total value:
- Medical expenses (past and future)
- Lost wages and earning capacity
- Pain and suffering
- Property damage
- Punitive damages (in applicable cases)
The funding determination process involves a careful analysis of all damages and documentation.
Insurance Coverage and the At-Fault Party’s Ability To Pay
The at-fault party’s insurance policy limits play a significant role in determining available compensation. Funding companies must consider these limitations when calculating potential returns.
An insurance coverage evaluation involves analyzing multiple policy types that may apply to your case. Auto insurance, general liability, professional liability, and umbrella policies can all contribute to the total available coverage. Funding companies review policy declarations pages to understand coverage limits, deductibles, and exclusions that could affect your settlement.
At-fault parties with minimal insurance coverage may limit your recovery potential, even with a strong case. In contrast, those with substantial personal assets or high insurance limits may provide greater funding opportunities.
Case Timeline and Legal Maturity
The stage of your legal proceedings affects funding decisions significantly. Your attorney’s experience and track record also influence timeline predictions. Cases in the discovery phase or with scheduled trial dates typically gain more favorable funding consideration than those in preliminary stages.
Previous Settlement Negotiations and Medical Treatments
Ongoing settlement discussions offer concrete evidence of your case’s value. Your medical treatment history demonstrates the extent and severity of your injuries. This documentation helps companies assess long-term and pre-trial financial support needs to determine appropriate settlement advance amounts.
Your Attorney’s Involvement and Contingency Agreement
Working with an attorney on a contingency fee basis is typically required for pre-settlement funding approval. Your attorney’s contingency fee percentage directly affects the net amount available for funding calculations, as these fees are deducted from your final settlement.
Financial Obligations and Liens
Existing medical liens and other obligations reduce your net settlement proceeds. Understanding pre-settlement funding options helps you make informed decisions about your financial needs during litigation. Funding companies carefully calculate these existing obligations to ensure you have access to appropriate advance amounts while maintaining sufficient funds for lien repayments at settlement.
Apex Legal Funding, LLC’s Commitment to Your Future
Understanding these pre-settlement funding factors helps you navigate the application process with realistic expectations. At Apex Legal Funding, LLC, we assist plaintiffs in navigating the financial support they need during challenging legal proceedings.
To learn more about how this financial solution can help during your legal case, explore the benefits of pre-settlement lawsuit funding and discover why plaintiffs choose our services for their pre-trial financial needs.
If you’re struggling with expenses during your accident lawsuit, contact Apex Legal Funding, LLC, at (800) 377-4934 to learn more about our pre-settlement funding options.
FAQs
Here are answers to common questions about pre-settlement funding amounts and the factors that influence offer decisions.
What Percentage of My Settlement Can I Access Through Pre-Settlement Funding?
Experienced funding companies typically offer between 10% and 20% of your case’s estimated value. The exact percentage depends on your case strength and company policies.
How Quickly Can I Access My Pre-Settlement Funding?
Once approved, you can typically access funds within 24 to 48 hours. The approval process usually takes one to three business days.
Do I Need Good Credit To Qualify for Pre-Settlement Funding?
No, your credit score doesn’t affect pre-settlement funding approval. These advances are based on your case’s merit, expected settlement value, and similar factors.
Can I Apply for Additional Funding if My Expenses Increase?
Yes, you can apply for multiple rounds of funding if your case value supports it. Each application undergoes the same evaluation process.