Imagine you’re struck by a drunk driver, and the accident leaves you with severe internal injuries. You spend several weeks in the hospital and rack up large medical bills, losing your ability to work. You sue the driver who hit you for damages, but your lawsuit may take months to resolve. What can you do to relieve your financial burden?
Discover the benefits of pre-settlement funding. Apex Legal Funding, LLC offers pre-settlement funding in New York for plaintiffs with pending lawsuits. Find out how you can apply for financing and the ways in which it helps with long-term financial planning.
Understanding the Prevalence and Financial Impact of Personal Injuries
According to the National Safety Council, car accidents in 2023 led to 5.1 million medically consulted injuries. The total cost of these injuries was estimated to be $513.8 billion. Even being in a minor fender bender could lead to costly vehicle repairs and unexpected medical treatment for whiplash, lacerations, or other common injuries.
The American Medical Association reports that 31% of physicians face medical malpractice lawsuits at some point in their careers. Whether a doctor makes an error in surgery, subjects an expectant mother to birth trauma, or misdiagnoses a patient, these mistakes can have serious consequences. Patients could endure major health setbacks that impact their quality of life due to a healthcare provider’s negligence.
Workplace injuries are also incredibly common. Data from the National Safety Council shows that injured employees often miss 10 or more days of work following an accident. Injuries can affect people across all industries, with the transportation, manufacturing, and healthcare sectors seeing the highest numbers.
These are just some examples of how widespread and costly personal injury cases can be. Pre-settlement funding may offer a much-needed reprieve for those with pending lawsuits against negligent drivers, physicians, or other liable parties.
What Is Case Settlement Funding?
Also known as a lawsuit advance, pre-settlement funding is money sent directly to plaintiffs from a third-party company. It represents the company taking an interest in a plaintiff’s case based on merit, which helps determine one’s eligibility for funding. Once approved, individuals will receive cash that they can use for any necessary expenses.
This type of legal claim financing can be an excellent resource for those concerned about the financial burdens of their case. It provides cash in a timely manner so plaintiffs can take care of pressing financial matters while they await their case’s resolution.
Some car accident and workplace injury claims can take as little as six months, whereas others can take two to four years. No matter how long your case takes to resolve, legal claim financing allows you to focus on staying afloat when other expenses pile up.
How Pre-Settlement Funding Can Ease Financial Burdens
How exactly does a plaintiff cash advance help you with your financial planning? One of the great things about pre-settlement funding is the flexibility it offers. There is no limit to when or how you use these funds.
Everyone’s situation is different. Depending on your unique circumstances, you may opt to put your lawsuit advance toward:
- Medical costs: In an effort to avoid medical debt, you can pay off some of these expenses as you await the case’s resolution.
- Transportation: Maybe your car is in the shop after an accident, but your injury claim isn’t anywhere close to being settled. Your funding could help eliminate transportation burdens.
- Housing: Landlords and lenders still expect rent and mortgage payments. Use the extra cash from your lawsuit funding to cover your housing costs.
- Utilities: If an injury leaves you unable to work, paying for basic utilities may become difficult without a cash advance.
- Other expenses: Put your litigation funding toward childcare, unexpected bills, and other miscellaneous costs.
While many companies send plaintiffs a cash advance in one lump sum, clients could inquire about a structured settlement alternative. Payment methods may vary based on a client’s unique situation.
The Difference Between Pre-Settlement Funding Companies and Traditional Bank Loans
You might be wondering, “Why should I apply for pre-settlement funding when I could apply for a traditional loan through a bank?” While both options can offer financial relief, they have some distinct differences that may influence your decision. Below is a breakdown of what you can expect with litigation funding versus a traditional loan.
Application Process
The differences between these lending options start with the application process. With a conventional loan, you’ll be the one completing paperwork and providing the necessary information. Apply for legal claim financing, and your lawyer will share key details about the case, which helps the lenders decide whether or not to approve you.
The timeframe for each application can also vary. Some people find that pre-settlement funding applications are processed more quickly.
Credit Impact
If you’ve ever applied for traditional financing before, you know that checking your credit history is standard. That isn’t the case with lawsuit funding. These companies don’t take your credit score into account the way that many lenders do.
Your personal injury case is more important than your credit history. Rather than looking at your credit score, financing professionals review your case’s details with your attorney. They evaluate the strength of your case and assess the likelihood of settling for a certain amount.
Repayment Plans
When it comes time to repay a lender, borrowers often have to make monthly payments with interest shortly after the loan goes through. This option isn’t always desirable for plaintiffs who aren’t sure when their case may settle and don’t want to worry about immediate repayment.
Lawsuit funding is typically non-recourse, meaning that you won’t have to pay it back if you lose your case. Repayment only occurs once the case resolves, either with an out-of-court settlement or a trial victory.
Consult One of the Leading Lawsuit Funding Companies in New York
Are you hoping to reap the advantages of pre-settlement lawsuit funding? Consider applying for pre-settlement funding through Apex Legal Funding, LLC. We’re among the more respected lawsuit funding companies in New York and offer 24-hour cash advances to approved clients.
With our help, you could watch your personal injury case play out without the stress that comes with high medical bills, missed paychecks, and other major expenses. Apply online today or call 1-800-377-4934 to learn more.
Frequently Asked Questions
Do you have unanswered questions about how litigation funding works and whether it’s the right option for you? Discover more about it below.
How Long Does It Take To Receive Car Accident Lawsuit Funding?
After you’re approved for car accident lawsuit funding, the lending company can provide you with money in as little as 24 hours.
Is a Lawsuit Cash Advance Only Available for Certain Personal Injury Cases?
No, plaintiffs in a wide range of injury cases may apply for funding. For example, Apex Legal Funding, LLC offers advances to those suing for car accident injuries, dog bites, construction accidents, and more.
How Much Could I Receive in Pre-Settlement Funding?
It depends. Plaintiffs approved for pre-settlement funding may receive a percentage of damages that the lender believes they will eventually earn in a settlement. Application outcomes and funding amounts vary for every case.