How Pre-Settlement Legal Funding Reduces Financial Stress During Your NYC Auto Accident Case

What Are the Benefits of Pre-Settlement Lawsuit Funding

Car accidents are extremely common in New York City, which is understandable given the 24/7 hustle and bustle in the Big Apple. In February 2024, the city reported 6,766 collisions and 21 traffic-related fatalities. Nationally, nearly 42,800 people died in car accidents in 2022.

Those who survive a car accident often face piles of bills and have no way to pay them. That’s where legal funding for an auto accident comes in. Below, you’ll learn how legal funding in New York can tide you over while waiting for your settlement check.

What Is Plaintiff Investment Funding?

Plaintiff investment funding is a lawsuit cash advance on your expected settlement amount. You may wonder why you might need such a thing.

The main reason is that car accident cases can take a long time to settle. You’ve got to identify liable parties, gather evidence, and negotiate with the insurance company. If the latter decides to play hardball, negotiations can take months.

In the meantime, you’re out of work and probably have no money coming in. You might rely on your savings for a while, but that money will inevitably run out. What will you do when your bank account runs dry, and you have debt collectors breathing down your neck?

Pre-settlement funding is the answer. It provides access to fast cash before you have that settlement check in your hands. If you have looming bills and can’t pay them, a lawsuit cash advance can be a real lifesaver.

Perks of Pre-Settlement Lawsuit Funding

Pre-settlement lawsuit funding sounds great, but there must be a catch, right? Nope! You don’t have to worry about monthly payments; your finances are never at risk. Repayment comes straight out of your settlement amount, too.

Got a bad credit score? Not a problem. You don’t need great credit to qualify for legal funding. It doesn’t even matter if you’ve filed for bankruptcy before.

Perhaps the biggest perk is that you don’t have to pay back pre-settlement legal funding if you don’t win your case. That means you have absolutely nothing to lose.

Pre-Settlement Funding Can Keep You From Becoming Stuck in a Vicious Lending Cycle

Pre-settlement funding is far safer than more traditional financing options. With other types of financing, you’ll have to worry about monthly payments. But what happens if you can’t make those payments?

You’ll sink further into debt, of course, which can seriously harm your credit score. Either that, or you might apply for another type of financing to help you pay off what you owe to the original lender. This creates a nasty lending cycle that’s tough to break out of.

With pre-settlement funding, you won’t have to fret about any of this. There are no monthly payments, no vicious lending cycle, and no coping with the burden of financial stress — just fast access to cash when you need it most.

Why You Might Need Pre-Settlement Funding After a Car Accident

Auto Accident Lawsuit Funding

You may be thinking, “Legal funding for an auto accident sounds great, but what can I use it for?” Pretty much anything!

Do you need to pay rent or your mortgage? Legal funding can help. Can you not afford to buy groceries because you’re too hurt to work? Legal funding can help with that, too.

Here are some ideas for how you can use your legal funding:

  • Pay off credit card bills
  • Pay for daycare or school tuition
  • Cover the cost of car repairs or a replacement vehicle
  • Pay for a rental vehicle while you look for a new car
  • Make home modifications, such as wheelchair ramps, if your car accident left you disabled
  • Hire someone to help you handle chores at home

How Much Is a Non-Recourse Cash Advance Worth for a Car Accident?

The answer to this question depends on the strength of your legal case. Funding companies don’t pay you the exact amount of your expected settlement. Rather, they give you a percentage of what your settlement might be worth.

Typically, a funding company will give you 15% to 20% of the value of your settlement. So, if you expect a $25,000 settlement for your rear-end collision, your cash advance could be $3,750 or more.

Legal Funding Eligibility Requirements

Before you rush off to apply for legal funding, make sure you’re aware of the eligibility requirements. First, you must be at least 18 years old and live in the U.S.

Second, you’ll need a qualifying case type. Car accident cases qualify, as do other types of personal injury cases, such as animal bites, slip-and-fall accidents, nursing home abuse, and medical malpractice.

Third, you must have a pending lawsuit. You can’t qualify for legal funding if you haven’t already filed a claim.

And last but not least, you need a lawyer. That means you won’t qualify if you plan on representing yourself. This is because you’re more likely to win your case if you have an attorney by your side.

Apply for a Cash Advance on Your Pending Lawsuit Now

If you’d like to apply for legal funding for an auto accident, reach out to Apex Legal Funding at 1-800-377-4934 for a case evaluation. We can also tell you who is eligible for pre-settlement lawsuit funding if you’re unsure whether you qualify for financial relief.

Frequently Asked Questions

What Is the Most Common Cause of Auto Accidents in NYC?

Driver distraction is the most common cause of car accidents in NYC. In February 2024, the city reported 1,912 accidents due to driver distraction and inattention. Failure to yield right-of-way is the second most common cause, with 537 accidents.

Does Legal Funding Have Any Fees?

Legal funding does have cash advance fees, but you don’t have to pay these fees up front. You’ll only pay once you’ve won your case. And if you don’t win, you don’t have to pay anything at all.

How Can You Use Legal Funding for an Auto Accident?

You can use the funding however you like. Use it to pay bills, buy food, repair your car, or anything else you want or need.