Colliding with another vehicle can leave you with serious injuries, extensive damage to your car, and traumatic memories of the event. Adding a personal injury claim to the mix can create extra stress as you seek financial compensation. Consider applying for pre-settlement funding in New York to relieve some of your financial burden in the meantime.
Apex Legal Funding, LLC offers settlement loans to accident victims with pending personal injury cases. If you’re recovering from a multi-vehicle crash and awaiting a lawsuit’s resolution, we may be able to help. Learn how a lawsuit cash advance works and why it may benefit you.
What Is Car Accident Lawsuit Funding, and How Does It Work?
Car accident lawsuit funding provides plaintiffs with a cash advance while their case remains pending. It allows victims to stay on top of their daily expenses as well as new financial challenges stemming from their accident, such as hospital bills or temporary transportation costs.
Lenders take an interest in the plaintiff’s case and only extend money to them if they believe the plaintiff will secure a settlement or win their personal injury trial. They communicate with the applicant’s lawyer to review the case’s legal details. Depending on the strength of the case, companies may approve the application and send a cash advance to the plaintiff.
Lenders pay a certain percentage of an expected settlement amount, though every firm takes a different approach. Suppose your lawyer calculates your accident damages as $100,000, and they have substantial evidence against a negligent party. If a lender believes the case is likely to settle for this amount and grants up to 30% of a settlement, they could provide you with up to $30,000 in advance.
Lawsuit Funding vs. Traditional Loans
Why should you consider pre-settlement funding instead of a traditional bank loan? While these options may seem similar, there are distinct differences that impact you and your finances, including:
- Your credit history: Lawsuit funding companies don’t consider a plaintiff’s credit when reviewing their application, unlike traditional lenders.
- Repayment processes: A conventional bank loan may require you to make monthly payments soon after you’re approved. Lawsuit funding doesn’t involve monthly payments but rather a one-time repayment once the case resolves.
- Borrower responsibility: You’re always responsible for paying back a bank loan, whereas repaying non-recourse lawsuit loans may only be necessary if you receive compensation for your personal injury case.
Say you wind up in the hospital following a multi-vehicle crash. The Insurance Information Institute reports that the consumer price index of hospital services has increased by 43% over 10 years. Your medical costs could leave you with a heavy financial burden that you’re unsure how to overcome.
Instead of becoming wrapped up in a traditional loan, you can apply for pre-settlement funding after filing a car accident claim.
The Benefits of Receiving a Lawsuit Cash Advance
According to a 2024 study from Fidelity, 72% of Americans have experienced some type of financial setback throughout the year. Forty-six percent of those affected needed to tap into an emergency savings account to stay afloat. If you’re a crash victim, your financial burden can be extreme, including medical costs, lost wages, and more.
Martindale-Nolo Research reports that the average settlement for a car accident claim is $29,700. You may receive a sizable payout for your injuries, though it often comes with a lengthy waiting period. According to respondents in the same study, it takes 10.7 months on average to receive a settlement check.
Applying for pre-settlement funding is an option worth exploring for many accident victims. Some key benefits include:
- Fast payouts: Once approved, some lawsuit funding companies in New York provide cash to plaintiffs in as little as 24 hours.
- Little risk: These non-recourse loans pose little risk to borrowers. Plaintiffs typically don’t have to repay them if they don’t win compensation in their lawsuit, though terms vary.
- Funds to cover everyday expenses: There is no dictating how plaintiffs can use these funds. They can help pay for housing, medical care, transportation, and other necessary expenses.
- Covered income: Settlements may include lost wages if an injury keeps someone from working. Receiving a portion of these funds early helps reduce a household’s financial loss.
- Reduced pressure to accept a low settlement: Some crash victims are quick to accept settlements, even though higher payouts may be possible through ongoing negotiations. With pre-settlement funding, they can prolong the case, if necessary.
How Pre-Settlement Funding Fits Into the Legal Process
When a car accident leaves you hurt, taking legal action may be one of your priorities. This is the first step in potentially receiving a cash advance. When is the right time to pursue pre-settlement funding?
Let the legal process play out as follows:
- Consult an attorney: Seek legal advice to see if you have a case and discuss strategies.
- Gather evidence: With help from your lawyer, you should compile evidence supporting your claim. This may include medical records, photos from the accident, police reports, and witness statements.
- Calculate damages: You must determine the extent of your losses, including medical expenses, lost wages, and property damage.
- Negotiate with defendants: Try to reach a settlement agreement through initial negotiations.
- Apply for lawsuit funding: If negotiations are unsuccessful or taking longer than you’d like, you can apply for pre-settlement funding by sharing your case’s details with a lender.
- Resolve the case: Your case may ultimately end with a settlement agreement or in a trial.
- Repay the loan: If you successfully receive a payout for your personal injury claim, a portion of the damages will go back to the lender to repay your loan.
Consult legal professionals with any questions throughout the process. Every case is different, so personalized guidance is crucial.
Contact the Legal Funding Company Multi-Vehicle Crash Victims Rely On
There’s no denying the advantages of pre-settlement lawsuit funding. At Apex Legal Funding, LLC, we provide financial relief to those with pending personal injury lawsuits, including car accident victims, slip-and-fall plaintiffs, dog bite victims, and more.
If you’re worried about short-term financial strain while you wait for your case to resolve, you may benefit from pre-settlement funding. Apply for funding today, and you could receive cash shortly after your application is approved. Submit your application online or give us a call at 1-800-377-4934 for more information.
Frequently Asked Questions
We address common client inquiries below.
How Soon After an Accident Can I Apply for Pre-Settlement Financial Relief?
You can apply for lawsuit funding as soon as you hire a lawyer and have a pending case. There is a three-year lawsuit filing deadline for car accident cases, so act within this timeframe.
Can I Receive a Cash Advance Even If I Have Poor Credit?
Yes. The application process doesn’t involve a credit check, so your credit history doesn’t affect your ability to receive a lawsuit cash advance.
How Can I Find Reputable Lawsuit Funding Companies in New York?
You can find lawsuit funding companies in New York by performing online research and asking legal professionals for recommendations.
What if I Switch Attorneys Before My Case Resolves?
Give your new attorney’s contact information to your pre-settlement funding lender. If you have already received funds, changing attorneys won’t impact the loan’s terms.