You never asked to be involved in a serious accident that resulted in thousands of dollars in medical bills. Now, you are still dealing with the repercussions of an injury that was someone else’s fault, and the toll on your finances has almost drained your savings.
While pursuing a personal injury lawsuit could eventually allow you to recover funds from the at-fault party, the process can take a significant amount of time. That’s where lawsuit funding companies in New York come in.
Pre-settlement funding can provide you with an advance on your eventual settlement so that you have funds to use now, not in months or years when your case settles. Learn how this form of funding can provide immediate financial help during your personal injury lawsuit.
What Is Lawsuit Funding?
Recovering from an accident can be incredibly expensive. The CDC reports that the average costs associated with nonfatal injuries that require inpatient care are approximately $52,250 in medical expenses and $7,820 in lost wages. In total, the cost of non-fatal injuries in 2019 across the U.S. was upwards of $4.2 trillion. Aside from initial medical treatment, you might also face long-term costs such as rehabilitation therapy, medications, and loss of ability to work, among others.
You likely were not financially prepared to become the victim of a personal injury accident, but now, you are stuck with the financial consequences. While you pursue compensation in a personal injury claim, your medical bills and regular daily expenses continue to pile up, adding to your stress. Your case may take over a year to resolve, while some complex cases take two or more years.
Pre-settlement funding provides you with financial relief while you wait to settle your personal injury lawsuit. This is a type of cash advance on your eventual lawsuit settlement. A lawsuit funding company can provide you with a percentage of your case value now, and you can pay it back, plus a small fee, once you receive your settlement. The funding amount usually equates to between 10% and 20% of your expected settlement.
If your case ends without a settlement or payout, you will not owe back the amount you received in pre-settlement funding. The funding company assumes the risk of your lawsuit ending without a payout.
How Quickly Can You Receive Pre-Settlement Funding?
Applying and qualifying for lawsuit pre-settlement funding is a relatively fast process. Once a company approves you for funding, you can often receive the money in your bank account within just a few business days.
Generally, you will need to meet the following criteria to qualify for lawsuit funding, though the exact stipulations can vary based on the company and type of funding:
- Have a valid personal injury lawsuit
- Have an attorney representing you
- Have compensable damages in your lawsuit
Your chances of qualifying for legal funding will also increase with the strength of your case. The funding company will want to see that the defendant was clearly liable for your damages and that you have strong evidence in your favor.
After submitting an initial application for a lawsuit cash advance, the company will review the details of your case and reach out to your attorney for more information. This process generally takes a few days.
All in all, if you qualify for a settlement advance, you may be able to gain financial relief within a week or less of applying.
What Can You Use Pre-Settlement Funding Toward?
Pre-settlement funding offers fast financial relief, but what types of expenses can you use this money for? Generally, lawsuit funding companies in New York do not dictate how you can use your pre-settlement funds. Once you receive this money, you can use it however you see fit, such as to:
- Start paying down medical bills arising from your injuries
- Continue paying regular bills to avoid late fees, such as your mortgage, utilities, and insurance
- Pad your emergency fund to make up for losses that arose during your initial injury recovery
- Pay up front for ongoing medical needs rather than putting them on a credit card and accruing interest
- Pay off your credit card bill to avoid further interest charges and fees
How Having Access to Fast Funding Can Support Your Personal Injury Case
If you feel burdened by the financial strain your accident has placed on you, pre-settlement funding can pose an effective solution. Having access to fast funding offers a range of benefits:
- Helps you avoid accepting an insufficient settlement offer: If you are running out of money, you may be tempted to take the first settlement offer the defendant provides you. Pre-settlement funding gives you financial relief so you can continue negotiations.
- Offers peace of mind during your case: Recovering from a serious injury and navigating a lawsuit is stressful enough without also worrying about finances. New York pre-settlement funding can ease your financial stress and help you maintain a level head through your case.
- Prevents unnecessary interest and fees from furthering your financial strain: If you are running out of money, you might need to put certain expenses on credit cards or be at risk of missing monthly payments, causing interest and fees to pile up and further contribute to your financial stress. You can use pre-settlement funding to continue making on-time payments and avoid unnecessary fees.
Seek Pre-Settlement Funding in New York Today
If you are low on funds and your personal injury lawsuit is taking longer than expected, pre-settlement funding may be able to help you bridge the gap until you can receive your expected settlement. Apex Legal Funding, LLC, offers litigation financial solutions for New York plaintiffs and their attorneys.
Explore our guide to pre-settlement funding for car accidents. Then apply for funding through our online form, or call us at 1-800-377-4934 for more information.
Frequently Asked Questions
Do you have to pay interest on pre-settlement funding?
You generally do not need to pay interest on pre-settlement funding, though terms can vary by company. Many funding companies simply charge a set fee that they add on to the total amount they repay out of your settlement. Your attorney can help you understand the terms of your pre-settlement funding before accepting an offer.
Is pre-settlement funding considered a loan?
Pre-settlement funding is not technically a loan; it is a cash advance. You do not need to repay the advance in monthly installments or have a specific payback date. Repayment depends on the outcome of your personal injury case. If you win your case and receive a settlement, the funding company will take the advance amount, plus fees, out of your settlement award with the help of your attorney. If you lose your case and walk away with nothing, you do not need to repay the advance.
Do pre-settlement funding companies check your credit score or income to determine eligibility?
No, pre-settlement funding companies generally do not check your credit score or evaluate your financial situation to determine your eligibility for funding. Instead, eligibility is based on the strength of your legal case and whether your case meets certain criteria.
Do you need an attorney to qualify for pre-settlement funding?
Yes, you generally need to have an attorney representing you to qualify for pre-settlement funding. The funding company will speak with your attorney when reviewing the strength of your case.