Life can get complicated after a personal injury. Whether you’re injured due to a car accident, a slip and fall incident, or due to medical malpractice, there’s likely going to be a period of weeks or months while you wait for your case to be resolved and you finally have cash in hand. And, if your case is one of the 4% to 5% that go to trial, you could be waiting years.
In the meantime, you are probably facing mounting medical bills, and you might not be able to work and earn a living while you recover physically and emotionally. It can be incredibly difficult, if not impossible, to pay bills and make ends meet while your case is being settled or until you receive a winning trial verdict.
The good news is that you have pre-settlement funding options that can put money in your pocket immediately, including getting a lawsuit cash advance. Keep reading to learn how plaintiff investment funding New York firms like Apex Legal Funding, LLC can help.
What Is a Personal Injury Cash Advance?
A personal injury cash advance, sometimes referred to as a lawsuit cash advance or pre-settlement funding, provides legal funding for accident victims who are in the midst of a personal injury claim or lawsuit.
The purpose of receiving personal injury legal funding is to provide plaintiffs (that’s you) with immediate access to a portion of their anticipated settlement or judgment. Typically, this number is around 10% to 15% of your case’s estimated value.
When you receive lawsuit funding for injury claims, you get a lump sum cash advance. Often, the funds are in hand within a couple of days. Unlike an actual loan from a bank, a personal injury cash advance doesn’t require a credit check, and the money doesn’t have to be paid back if you don’t win your case.
Top 4 Benefits of Personal Injury Legal Funding
According to The National Law Review, pre-settlement funding can be a great option for people in the middle of a personal injury claim. There are numerous benefits to personal injury legal funding, including offering a financial lifeline for those who need money before their case is resolved.
1. You Don’t Have To Wait for Cash
Applying for a loan can be an arduous process, requiring lengthy applications and approvals. Further, loans may require having collateral, undergoing a credit check, and having to divulge how you plan on using the funds.
With personal injury legal funding, you can get cash as soon as the same day. Plus, there are no upfront costs or origination fees. Another advantage of a personal injury cash advance is that there is no impact on your credit score because there is no credit check.
Being able to access funds quickly and alleviate financial stress is one of the most compelling benefits of a cash advance.
2. You Can Pay Off Medical Bills
A serious or catastrophic injury can take months or years to heal. In the meantime, your medical bills may be multiplying. If you’re short on cash, you might feel like you can’t get the treatment you need, and this can have long-term effects on your health, while also compromising your case.
When you get a cash advance for your personal injury lawsuit, the immediate access to funds can allow you to cover the costs of all of your treatments. You can stay up to date with all of your medical expenses, including co-pays, deductibles, and out-of-pocket expenses. Further, you don’t have to pick and choose what treatments you can afford, and you can avoid going into medical debt, which accounts for 66.5% of bankruptcies in the U.S.
3. You Can Make Ends Meet Even If You’re Not Working
If you’re unable to work while you recover from your injuries, it can be incredibly stressful to watch your bills begin to pile up. A cash advance gives you much needed breathing room, giving you liquidity to cover your living expenses and maintain financial stability.
By having the cash necessary to pay your monthly bills, you can reduce stress and anxiety and avoid going into debt.
4. You Don’t Have To Pay Anything Back Unless You Win
With a traditional loan, you have to pay everything back, including both the principal and interest. This can be daunting (and financially crippling) if you don’t win your case. With a personal injury lawsuit cash advance, repayment is contingent on the outcome of your claim. In other words, if you don’t win, you don’t have to pay back a single dime.
FAQs
How is legal funding for personal injury different from personal injury lawsuit loans?
Both legal funding for personal injury and personal injury lawsuit loans are financial options for people involved in a personal injury claim to get cash. The key difference between the two is that a cash advance is non-recourse, which means that you only have to pay back the advance if you win. Further, loans require credit checks, which is not the case for a personal injury cash advance.
How do I pay back my injury lawsuit financing if I don’t win my claim or case?
If you don’t win your case, you don’t have to pay back the injury lawsuit financing. This is one of the biggest benefits of a personal injury cash advance.
Is it really worth getting pre-settlement funding?
Whether pre-settlement funding is right for you can depend on numerous factors. Typically, if you are in need of cash or experiencing a financial hardship, pre-settlement funding can be beneficial to help you cover living expenses, medical bills, and other costs while you wait for your case to settle.
Apply for Personal Injury Legal Funding Today
In evaluating the differences between a lawsuit cash advance vs. traditional loan, the people Apex Legal Funding helps appreciate the security that comes with knowing that they don’t owe anything unless they are victorious in their legal claim. To learn more about a lawsuit cash advance, call us toll-free at 1-800-377-4934 or apply online today.
