If you are pursuing a personal injury case, you may be hoping for or expecting a significant settlement at the end of the legal process. But you may have never expected your case to take months or even years to settle.
Personal injury cases often span years due to several issues that cause delays. However, you may be able to seek an advance on your eventual settlement through a personal injury lawsuit funding company in New York.
Learn what leads to delays in the legal process and how lawsuit funding can help.
Why Do Personal Injury Cases Take So Long?
Personal injury cases can vary significantly in duration. Many factors impact how long a case takes to complete, such as the complexity of the case, court delays, and both parties’ cooperation.
For example, one review of medical malpractice cases found that the average claim took 20.3 months to resolve. Some reports estimate that as many as 95% of personal injury cases end in a pre-trial settlement, but these cases still often take months or over a year to resolve. One source suggests that the average personal injury claim takes between six and 18 months to settle.
When you file a personal injury lawsuit, you can generally expect to wait at least several months to receive any funds, if not longer. Why do personal injury cases take so long? Here are a few common reasons:
- Medical recovery is sometimes necessary to determine the extent of injuries. Cases involving severe injuries can sometimes see delays while the plaintiff goes through medical treatment. They may need to reach Maximum Medical Improvement (MMI) to understand the full impact and cost of their injuries before settling.
- Each stage can take months to complete. Personal injury cases involve several stages, including the investigation, negotiations, discovery, motions, the trial, etc. Each of these stages can take months, adding up to a lengthy process.
- Evidence gathering can take time. Many personal injury cases experience delays during the evidence-gathering process. Lawyers on both sides of the case gather witness statements, collect accident reports and records, and look for other types of evidence to support their arguments. This stage may also involve filing motions for certain types of evidence, which hinge on the speed of the court’s processes.
- Legal and factual disputes can delay the process. Both lawyers may look for facts in the case that they can agree on to avoid needing to prove those points in court. But disputes over essential facts like who was at fault or how the accident happened can delay the process.
- Insurance companies sometimes delay claims to encourage lowball settlements. In some cases, an insurance company might delay a claim to persuade the claimant to accept a lowball offer. This is relatively uncommon, but it is something to watch out for in your case.
- Court scheduling can be slow. If your personal injury case proceeds to court, it will be subject to the court’s schedule. Often, court dates are changed or delayed several times before a trial actually happens.
While plaintiffs wait months or years for their cases to settle, their bills continue to accumulate. Some plaintiffs turn to non-recourse legal funding or personal injury settlement advances to ease this financial burden.
What Is Lawsuit Funding?
Personal injury lawsuit funding is a type of cash advance on your eventual lawsuit settlement. A lawsuit funding company would evaluate the strength of your case, review relevant case documents, and speak with your attorney to understand the likelihood of your case ending in a settlement. If the company feels confident about your case, it may offer you a lump sum advance of a portion of your expected settlement.
This type of funding is considered “non-recourse,” which means it presents little risk to you. If you were to accept a lawsuit advance and then lose your case, you would not need to repay any of the advance. The lawsuit funding company assumes the risk of your case ending without a settlement, not you. At the end of your case, the company would repay your advance out of your settlement, plus any interest or fees.
You can use a lawsuit advance for a wide range of expenses related to your case. If you are in financial hardship that only worsens as your case experiences delays, pre-settlement funding may be an option to consider.
How Lawsuit Funding Helps With Prolonged and Delayed Cases
Accepting personal injury lawsuit funding won’t help your case move faster, but it can help ease the stress that comes with a lengthy legal process. Pre-settlement cash advances offer several benefits for prolonged and delayed cases, including:
- Prevent you from accepting a low offer just because you need cash: If you are strapped for cash during your personal injury lawsuit, you may be tempted to accept the first settlement offer you receive. Lawsuit funding can give you more negotiating power so that you do not feel rushed to accept an inadequate settlement.
- Allow you to continue making payments to avoid interest on debt: While you wait for your case to settle, you may accumulate debt from unpaid medical bills or expenses that you cannot afford while you are off work and not making your normal income. Seeking delayed settlement financial relief can give you the funds you need to avoid missing mortgage payments, credit card payments, or other expenses and going into more debt.
- Gives you peace of mind during a stressful legal process: You are already going through a hard enough time without worrying about making ends meet during your legal case. Personal injury lawsuit funding can provide you with peace of mind despite delays in your case or other complexities that arise.
Legal funding companies in New York must adhere to the Consumer Litigation Funding Act, which establishes provisions to regulate litigation funding transactions and protect consumers against fraud. This legislation can help you feel more confident pursuing a settlement advance.
Apply for Pre-Settlement Lawsuit Funding Today
If you are in the middle of a long, arduous legal case, personal injury lawsuit funding could provide you with financial relief. Apex Legal Funding, LLC, offers financial solutions to help plaintiffs fill monetary gaps during their cases.
Learn more about the importance of pre-settlement funding for personal injury lawsuits. Then apply for funding today through our online form.
Frequently Asked Questions
What is the lawsuit loan approval process?
The approval process for a lawsuit loan generally involves submitting information about your case and connecting the funding company to your attorney. The company will review your case details and speak with your attorney to determine whether to offer you funding. You may need to meet certain requirements as well, such as being at least 18 years old and having a qualifying personal injury case.
How long does it take to receive lawsuit funding?
Some lawsuit funding companies can send the funds in as little as 24 hours after approving your application. These companies tend to make the process as quick as possible to provide clients with the funding they need.
Is personal injury lawsuit funding a loan?
Personal injury lawsuit funding is not a traditional “loan.” Instead, it is a form of non-recourse funding that acts as a cash advance on your eventual lawsuit settlement.