If you’re currently involved in a personal injury lawsuit in New York and finding it difficult to cover your bills while waiting for your compensation, pre-settlement funding could be the solution. It’s natural to feel the financial strain while waiting for your case to settle, but this type of non-recourse loan can provide the relief you need.
In this guide, Apex Legal Funding LLC will explain how pre-settlement funding works, helping you determine if it’s right for your case. If you’re considering pre-settlement funding for your accident lawsuit in New York, this article will provide the insights you need.
How Does Pre-Settlement Funding Work?
According to the New York State Department of Health, three people in New York die every day from traffic accidents. Even victims suffering more minor injuries must face long-term financial strain. If you’re facing financial stress due to a personal injury lawsuit, understanding the pre-settlement funding approval process can help you make a more informed choice.
Pre-settlement funding, also known as lawsuit funding, provides plaintiffs with immediate financial relief while waiting for their personal injury lawsuit to be resolved. Now, how does this work? It acts as a cash advance for a portion of your expected settlement or award.
The amount you’re offered is based on the potential value of your case, determined through a review by the legal funding company. Pre-settlement funding is a unique type of financial assistance because it operates as a non-recourse loan. This means that you are only required to repay the amount if you win your case; If the case does not end in a favorable outcome, you are not obligated to repay the loan.
This financial solution is particularly useful for individuals dealing with serious injuries from car accidents, slips and falls, medical malpractice accidents, worksite incidents, and more. Personal injury financing helps you cover everything from daily expenses to necessary medical bills.
When Should You Consider Personal Injury Lawsuit Funding?
According to the National Highway Traffic Safety Administration (NHTSA), there were 1,175 motor vehicle fatalities in New York in 2022, underscoring the importance of timely financial assistance for those involved in accidents. While your claim could take months or years to pay out, a cash advance offers relief immediately.
Deciding if pre-settlement funding is right for you depends on several factors, though, including the nature of your case and the financial hardship you’re experiencing. Pre-settlement funding is typically considered when a plaintiff advance is facing financial difficulty and urgently needs cash but doesn’t want to settle their case too quickly for a low amount.
You may want to consider pre-settlement funding if you’re experiencing:
- Serious injury or ongoing medical expenses: In 2022, average emergency room treatment costs for non-fatal injuries were $5,000, but this number reached $50,000 for patients who were admitted to the hospital. If you have mounting medical bills that insurance or your current income cannot cover, lawsuit funding can help.
- Time-sensitive bills: Pre-settlement funding can alleviate the stress of overwhelming expenses such as rent, utilities, or child support.
- Work challenges: If your injury has left you unable to work, it might be worth considering funding until you’re granted your settlement.
What Are the Risks and Benefits of Pre-Settlement Accident Lawsuit Funding?
While pre-settlement funding can offer immediate financial relief, it’s important to understand the risks and benefits before committing.
A significant benefit of pre-settlement funding is that it allows you to avoid accepting a quick, low settlement out of financial desperation. Since pre-settlement funding is a non-recourse loan, you don’t need to make monthly payments. It often comes with a quick turnaround, allowing you to gain access to funds in as little as 24 hours after approval.
Still, you should consider these risks:
- Potential costs: Funding companies often charge a fee for the advance, which can reduce the total amount of your settlement.
- Limited eligibility: Not every case qualifies for pre-settlement funding. Legal funding companies typically evaluate the merits of your case before making an offer.
Is Pre-Settlement Funding the Right Choice for Your Case?
Ultimately, deciding whether pre-settlement funding is right for your case in New York depends on balancing your immediate financial needs with potential long-term costs. If you’re considering applying for pre-settlement funding, it’s essential to consult your attorney.
They can help assess whether you have a strong case and the amount of cash you might qualify for. It’s also important to understand that lawsuit cash advances are not always approved, and factors like the complexity of your case and the strength of your evidence play a significant role.
Pre-settlement funding does not impact your credit score and typically does not require high interest rates, depending on the lender. If you need financial relief immediately, this structured settlement option might be the right choice for you.
Secure the Funds You Need Today
At Apex Legal Funding LLC, we understand how challenging it can be to wait for a settlement, particularly when dealing with the financial burden of an injury. Pre-settlement funding can be an excellent option for plaintiffs in New York who need immediate financial relief while waiting for their lawsuit to be resolved.
If you’re ready to take the next step and want to know more about how cash advances work, you can start by understanding the pre-settlement accident lawsuit funding approval process. If you have any questions or are considering pre-settlement funding for your case, please contact Apex Legal Funding LLC today at (800) 377-4934 for more information or apply online now.
FAQs
We have the answers to all your questions!
How Fast Can I Be Approved for Pre-Settlement Funding?
In many cases, you can be approved for funds within 24 hours, depending on your case.
Do I Need To Repay the Funding if I Lose My Case?
No, pre-settlement funding is non-recourse, so you don’t have to repay it if you lose your case.
Can I Apply for Funding Without My Lawyer’s Involvement?
Typically, your attorney’s input is needed, but some cases may allow for direct application.
