Many accident victims face mounting medical bills and lost wages during lengthy legal battles. Pre-settlement accident lawsuit funding can provide much-needed financial relief during this challenging time.
In this guide, Apex Legal Funding, LLC, will explain pre-settlement funding and how it can help car accident victims pursue compensation.
What You Need To Know About Pre-Settlement Funding for Car Accident Claims
Pre-settlement funding provides financial assistance to plaintiffs before their case settles. This type of legal funding allows you to access a portion of your expected settlement early. You can use these funds to cover living expenses, medical bills, or other costs while your attorney negotiates a fair settlement.
Pre-settlement funding differs from traditional loans in several ways:
- It’s non-recourse, meaning you only repay if you win your case.
- Approval is based on the strength of your claim, not your credit score.
- There are no monthly payments.
According to the National Highway Traffic Safety Administration, there were 5.25 million police-reported crashes in the U.S. in 2020. Many of these accidents trigger lawsuits that can take months or years to resolve. During this time, the last thing you want to worry about is paying bills, which is why car accident lawsuit funding can prove beneficial.
The Financial Impact of Car Accidents and How Pre-Settlement Funding Helps
Car accidents can have devastating financial consequences. Beyond immediate medical expenses, you may face ongoing treatment costs, lost wages, and property damage. These financial pressures can force you to accept a lower settlement than you think is fair.
Pre-settlement funding alleviates this financial strain by providing:
- Cash for living expenses
- Funds to cover medical bills
- Money for car repairs or replacement
- Financial stability to negotiate a fair settlement
A study by the Insurance Research Council found that auto injury claimants who hired attorneys received settlements 3.5 times larger than those who didn’t. Pre-settlement funding can give you the time and resources to work with an experienced attorney and pursue compensation.
Common Situations Where Auto Accident Lawsuit Funding Is Vital
Car accidents can lead to complex financial situations that make pre-settlement funding an essential lifeline. Here are some common scenarios where this type of legal funding can play a crucial role:
Your Injuries Prevent You From Working
Severe injuries from a car accident may prevent you from returning to work. Without a steady income, you might struggle to cover basic living expenses. Pre-settlement funding and litigation financing can provide the financial support you need while focusing on recovery and your legal case.
You Don’t Have Enough Savings
Even if you have some savings, a prolonged legal battle can quickly deplete your resources. Case funding can help bridge the gap between your accident and the final settlement, ensuring you can maintain financial stability throughout the process.
You Have Insufficient Insurance Coverage
Your compensation may be limited if the at-fault driver has minimal or no insurance. Lawsuit funding can help cover immediate expenses while your attorney pursues additional avenues for compensation, such as underinsured motorist claims.
You Can’t Qualify for a Bank Loan
Traditional lenders often require good credit and proof of income for loan approval. If your accident has impacted your credit or ability to work, you may not qualify. Pre-settlement loans, however, are based on the merits of your case, not your personal finances.
The Insurance Company Pressures You To Settle
Insurance companies may offer quick, low settlements, hoping you’ll buckle under the financial pressure. Settlement advances give you the breathing room to reject unfair offers and allow your attorney to negotiate for compensation.
How To Pursue Pre-Settlement Funding After a Car Accident
Auto accident lawsuit funding remains a highly prevalent type of pre-settlement funding. The National Highway Traffic Safety Administration estimated that 2019 motor vehicle collisions cost Americans $340 billion. This staggering figure underscores why many accident victims turn to legal funding while pursuing their claims.
Pursuing pre-settlement funding is typically straightforward and may involve the following process:
- Submit an application with basic case details: You’ll provide information about your accident, injuries, and legal representation. This usually involves filling out a simple online form or speaking with a funding representative.
- The funding company reviews your case: Underwriters will assess the strength of your claim and the likelihood of success. They may contact your attorney to verify details and gather additional information.
- If approved, you receive funds within 24-48 hours: Once the company approves your application, it will send you a contract. After you sign and return it, funds are typically transferred to your account within one to two business days.
To qualify for pre-settlement funding, you generally need a valid personal injury claim, an attorney representing you on contingency, and clear liability against a well-insured defendant.
Learn More About Pre-Settlement Funding With Apex Legal Funding, LLC
Pre-settlement funding can be a lifeline for car accident victims facing financial hardship. At Apex Legal Funding, LLC, we understand the challenges you’re facing. We offer pre-settlement funding for personal injury lawsuits.
Our team knows how valuable car accident lawsuit funding can be, providing the financial support you need during this difficult time. For more information about pre-settlement funding in your area, call Apex Legal Funding, LLC, at (800) 377-4934.
FAQ
How Long Does It Take for Pre-Settlement Funding To Go Through?
Pre-settlement funding companies tend to provide funds within 24-48 hours of application approval, making the process typically quick and straightforward.
Is Pre-Settlement Funding the Same as a Loan?
No, pre-settlement funding is not a loan. It’s a non-recourse cash advance on your expected settlement, meaning you only repay if you win your case.
How Much Can I Expect To Receive From Pre-Settlement Funding?
The amount you can receive depends on the strength of your case and the expected settlement value. Pre-settlement funding companies offer advances of 10-20% of the estimated settlement amount.
Do I Need Good Credit To Apply for Pre-Settlement Funding?
No, your credit score is not a factor in pre-settlement funding approval. Funding companies base their decision on the merits of your case, not your personal finances.
