Settlements take time. While roughly 95% of personal injury cases will eventually reach a settlement, according to Forbes, Nolo states that settlements can take anywhere from a few months to over a year to process. In the meantime, you’ll have to deal with expensive bills, from monthly utilities to potential medical expenses.
Many victims find themselves searching for a potential solution to prevent financial difficulties while waiting for their settlement. Legal funding in New York is a popular option — but what is legal funding, and how can it help with your situation? Apex Legal Funding, LLC, is here to explain the basics and provide you with tips before you apply.
What Is Legal Funding?
Legal funding, also known as litigation funding support or plaintiff funding, is a type of cash advance. Legal funding companies examine the likelihood of your case’s success. If you have a strong case, you can borrow a percentage of your estimated settlement. This money can be used to:
- Pay attorney fees
- Cover medical bills
- Pay monthly bills, like mortgage and car payments
- Pay for groceries
- And more
Funding for legal cases has several advantages. Unlike many traditional loans, you don’t need collateral for approval. In addition, it doesn’t require credit checks; approval is based entirely on the merits of your case. You also won’t need to pay your legal funding company anything if your case doesn’t succeed, making it a relatively risk-free option.
The Approval Process
Before you can apply for legal funding, you’ll need to meet the following criteria:
- Your case must have a relatively high likelihood of succeeding
- You must be working with a lawyer on a contingency fee basis
- The defendant must be responsible for paying any damages
Generally speaking, your attorney will work closely with your legal funding company to pursue approval. Your attorney will provide the company with details about your case, which the company will examine to determine eligibility. You or your attorney may need to provide additional details for verification.
Should the lending company believe you meet the qualifications, the company will provide you with confirmation. You should see your money within a couple of days of the confirmation.
Tips To Make Applying for a Cash Advance on a Pending Lawsuit Easier
Legal funding can be an excellent way to help reduce financial strain while waiting for a settlement to be processed. While applying for it isn’t particularly complex, individuals may still encounter problems if they don’t prepare properly. We’ve provided a list of tips below to help make the application process smoother.
Let Your Attorney Know You’re Applying
If you’re exploring pre-settlement funding options, ensuring your attorney is aware of it is important. Your attorney is a vital part of the approval process; if they don’t know the funding company might call, it could slow down or even halt proceedings. In addition, this allows your attorney to gather any necessary documentation ahead of time, helping you pursue funding faster.
Study Your Case Closely
Before searching for lawsuit financing services, you want to confirm that you’re eligible. Your funding company will likely ask many questions about your case to determine its validity, so it’s important to know how to answer those beforehand. By taking the time to make note of the case details, you can speed up the application process.
Gather Important Documents Beforehand
The funding company will likely request several important documents, including:
- Medical records related to the incident
- Legal documents related to the proceedings, such as a demand letter
- The police report
Ensuring you have these documents ahead of time can reduce potential complications with the application process.
Only Apply for the Amount You’ll Need
It might feel tempting to request large sums of legal funding. However, the amount the funding company awards will come out of the final settlement amount. Therefore, it’s often more beneficial only to borrow the money you’ll need to cover important bills.
Before applying, take the time to examine your finances and see how much extra you’ll need for medical expenses, attorney fees, or other concerns. Add everything up, and apply for the total amount.
Request Lawsuit Financing Services From Apex Legal Funding, LLC
If you’re facing serious injuries and can’t wait for a settlement to help pay bills, pursuing legal financing solutions may be an excellent way to protect yourself financially.
However, choosing the right pre-settlement lawyer isn’t always easy. You need a professional with an extensive understanding of how legal funding works, years of experience, and a commitment to helping clients.
At Apex Legal Funding, LLC, we’re prepared to answer whatever questions our clients may have. We’ll guide you through the application process; if you’d like to learn more, call 1-800-377-4934 to request your free, no-obligation consultation. Learn more about legal funding today.
Frequently Asked Questions
Our goal at Apex Legal Funding, LLC, is to help you understand more about legal funding. We’ve answered some common questions below; if you would like more information, reach out to our professionals, who will be happy to walk you through the process.
What Percentage Will Legal Funding Companies Pay for Plaintiff Investment Funding?
According to Finance Monthly, you can pursue up to 20% of your total settlement. The actual amount will depend on the extent of your damages, your estimated settlement amount, and the circumstances surrounding your lawsuit, among other factors.
What Are the Benefits of a Cash Advance on a Lawsuit?
One of the primary benefits of a cash advance on a lawsuit is that it allows you to pay for outstanding bills while waiting for the settlement to go through. This helps reduce your stress and financial burden, allowing you to pursue a lawsuit with fewer concerns.
What Is Attorney Funding Assistance?
Attorney funding assistance is similar to standard legal funding and aims to help attorneys pursue additional monetary assistance. This, in turn, lets them further develop their law firms, build stronger cases, and otherwise support their clients.
