If you’ve been hurt in an accident, it may ease your worries to know that most personal injury cases settle out of court. However, you could wait six months, a year, or even more to see that settlement money.
That’s where lawsuit funding comes in. Car accident pre-settlement funding can help you stay afloat financially while you wait for that settlement check to arrive. Learn how it works and how to determine whether lawsuit funding is right for you below.
What Is Lawsuit Funding?
At the outset, it’s important to clarify that lawsuit funding is not a loan, even though you may sometimes see it referred to as such. Rather, it’s a cash advance on your settlement. Because the money is technically yours, you can use it for anything you need or want. That includes:
- Outstanding medical bills
- Rent or mortgage payments
- Groceries
- Utility bills
- Credit card bills
- Loan payments
Lawsuit funding is appealing because it’s risk-free for accident victims. If your case loses, you don’t have to pay anything back. And unlike with loans, you don’t have to make monthly payments or grapple with high interest rates. The repayment terms are fair and easy to understand.
Does Pre-Settlement Funding Make Sense for You?
Who is lawsuit funding for? If any of the following statements resonate with you, you’re a good candidate for pre-settlement funding.
- You expect a generous settlement: It’s impossible to know exactly how much your settlement will be, of course, but your attorney has a good idea of the value of your case. For example, the average car accident settlement ranges from about $20,000 to $25,000 for bodily injury. If you expect a five-figure settlement and could use a portion of that money now, lawsuit funding is a good pick.
- You’re running out of cash for necessities: Life’s obligations don’t stop just because you’ve had an accident. You have rent to pay and groceries to buy, and that money has to come from somewhere. If you’re missing your paycheck, lawsuit funding can tide you over until you go back to work.
- You need money for court costs and legal fees: Although rare, some personal injury lawyers ask for money upfront. If yours is one of them, how will you pay those fees if you can’t work? Costs can start at hundreds of dollars (court filing fees, for instance, may range from $100 to $400). Lawsuit funding can help you cover your legal costs and keep your case going until you reach a settlement.
- You don’t want to take out a loan: A personal loan can certainly help when you’re running low on funds, but loans come with plenty of drawbacks. You’ll have to make regular payments, plus interest. Worst of all, you’ll need to repay the loan regardless of whether your case wins or loses. Pre-settlement funding doesn’t require repayment if you don’t win your case.
- You want the fairest possible settlement: Often, when a defendant knows that the plaintiff has legal loans, they’re more likely to settle for a fair sum (and settle faster). When you have legal funding, you won’t feel pressured to accept a low settlement offer just because something is better than nothing.
How Do Lawsuit Funding Companies Work?
Decided that lawsuit funding is right for you? Here are your next steps.
- Research lawsuit funding companies and choose one with fair lending practices, such as Apex Legal Funding, LLC.
- Consider what type of funding you need. Pre-settlement funding provides you with cash before your case is finished, while post-settlement funding is ideal after you’ve won your case but are still waiting on the settlement check.
- Collect case documents, such as a copy of your legal complaint, your attorney retainer agreement, medical treatment records, and evidence that bolsters your claim.
- Complete a lawsuit loan application with your chosen funding company. If you’ve decided to work with Apex Legal Funding, LLC, you’ll find our application process to be as easy as can be. We offer an online application that you can complete in minutes.
- Wait for our team to review your case and decide whether you’re a good fit for financial assistance. We’ll examine the strength of your case, your damages, and your potential settlement. This process is necessary to determine the risk level associated with funding you.
- If approved, we’ll send you a funding offer, which you can review with your attorney. The offer will include your advance amount, our fees, and information about repayment.
- After you accept the offer, we’ll work with your lawyer to arrange the funding. You could have your funding in 24 hours or less after approval.
- If you win your case, your lawyer will repay what you’ve borrowed out of your settlement. Didn’t win? You don’t owe us a thing.
Stop Stressing About Money and Apply for Litigation Financing Today
You shouldn’t have to accept an unfair settlement offer just because you’re running low on cash. Call Apex Legal Funding, LLC at (800) 377-4934 to start the lawsuit funding application process, or read more of our blog to learn common myths about pre-settlement funding.
FAQ
At Apex Legal Funding, LLC, clients commonly ask us questions about the lawsuit funding process. We provide answers to some of these questions.
How Long Does It Take To Approve a Lawsuit Funding Application?
It usually takes less than two days to approve your lawsuit funding application. In many cases, we can send you funding in as little as 24 hours.
How Much Money Can You Request With Legal Funding?
The amount of money you can request with legal funding depends on the details of your case. We base funding on the strength of your case and the anticipated settlement amount.
When Do You Have To Pay Back Lawsuit Funding?
You only have to pay back lawsuit funding after your case is over. At that time, you’ll pay us out of your settlement. If you do not win your case, you owe nothing.
