A motor vehicle collision can change your entire life in mere seconds. You may have already begun pursuing a personal injury claim for your accident. In the meantime, recovering from serious injuries can prevent you from earning income. Auto accident plaintiffs often find themselves in a dilemma: how to pursue their claims yet have enough money for living expenses.
If you’re in this situation, NY Legal Funding may have an ideal solution: auto accident lawsuit funding. As a unique financial option, lawsuit funding can help plaintiffs in personal injury cases meet basic expenses with a cash advance while they cannot work. Should you qualify for this funding, you can focus on your health without compromising efforts on pursuing your claim.
According to the National Safety Council (NSC), motor vehicle accidents caused 4.5 million medically consulted injuries in 2019. The NSC also recorded 39,107 deaths from auto accidents that same year. These incidents cost a total of $463 billion, which included lost wages and productivity plus medical expenses and property damage.
When the NSC averaged the economic toll of each incident, it found that each disabling accident cost $98,400. Each motor vehicular death cost a staggering $1.7 million. These figures may help put the overall costs of motor vehicle accidents into perspective.
You also know how your auto accident has taken a toll on your life. Recovery isn’t easy, and neither are the financial impacts of a personal injury. You don’t want to jeopardize your health or your finances. Yet at the same time, you also want to collect any compensation potentially resulting from your claim.
Having access to money when you cannot work is essential. Even if you could theoretically return to work, it would certainly jeopardize your healing process. You also may not wish to settle for less than what your claim is worth.
Motor vehicle accident lawsuits can be lengthy, yet your expenses cannot wait. Without access to financial resources, you could lose the ability to care for yourself and your family. If you’re unable to pay rent or mortgage payments, you could also lose your home.
One reason why some plaintiffs turn to car accident lawsuit funding is the slow pace at which personal injury cases tend to proceed. It can easily take 18 to 24 months or longer to reach an outcome. That’s because the discovery process is key to these cases.
This fact-finding stage can uncover important evidence such as police reports, eyewitness depositions, expert witness testimony, records from insurance companies, medical records, and photographs. Both the plaintiff’s and defendant’s attorneys take part in the discovery process.
Another complexity of personal injury cases is the concept of MMI. Short for “maximum medical improvement,” MMI is the point where an individual completely recovers from injuries. Alternatively, MMI may mean that the person’s condition has stabilized with no expected substantial improvements in the future. Determining MMI is important, as it influences how much a personal injury claim is worth.
An individual’s MMI point may not be evident at the early stages in a motor vehicle accident case. Moreover, the discovery process can take six months or more to complete. During this time, auto accident pre-settlement funding can help you pay your bills and meet critical household expenses as you pursue your claim.
Car accident settlement loans work on a simple premise: you borrow against your anticipated settlement amount. When you apply for funding, a lender evaluates the merits of your personal injury case. The team at NY Lawsuit Funding attempts to find the best possible options for each case. We base our approvals on the likelihood of each case’s successful resolution, not the applicant’s creditworthiness, income, or employment history.
Upon approval, plaintiffs may be able to borrow a percentage of their settlements — typically 10% to 20%. These loans act more like cash advances because they’re repaid out of the final settlement amounts plaintiffs receive.
Car accident loans may relieve some of your worries during your personal injury case. If approved, you’ll receive your funding within a short period of time.
Besides the money itself, auto accident plaintiff financing provides some useful advantages:
If you’re approved, you can use the money to handle day-to-day expenses: rent and mortgage payments, utilities, food, childcare expenses, auto loan payments, education costs, medical treatment expenses, and more. Since a car accident settlement loan is non-recourse and payment comes out of your settlement, you aren’t impacting your future financial health.
Repayment only occurs after a successful outcome of your claim, either by a verdict or settlement. If you lose your case, you owe nothing.
Personal injury lawsuit funding is unique in that lenders assume more risk with it than with traditional loan products. Receiving a small percentage of the expected settlement amount can help plaintiffs meet their needs during difficult times. Every case is different, so individual loan amounts vary.
Our NY Legal Funding team examines three key considerations when evaluating a car accident loan application:
Both economic and non-economic damages factor into a claim’s estimated value. It is helpful if our team can easily assess and calculate the damages involved in your case. Determining loan amounts can be more complex with claims in which plaintiffs share some liability.
Lenders must also consider any upper limits for damage recovery in each claim. These caps usually come from each state’s minimum policy limits and each defendant’s own coverage limits.
Plaintiffs in motor vehicle accident cases often have difficult decisions to make: pursue claims to their fullest possible extent or secure money by whatever means necessary. NY Legal Funding can help make that choice simple with a car accident lawsuit loan. We’re happy to answer your questions and explain your options. Contact us today through our online form to get started.