How long can I receive pre-settlement funding for?
Pre-settlement funding is a type of financial product providing individuals with the cash to pay for their living and medical expenses while they await a court settlement or judgment from a personal injury lawsuit. It gives injured individuals the necessary financial support to sustain themselves and their families with enough cash for day-to-day expenses, even before their case reaches a verdict.
The amount of time an individual may receive pre-settlement funding depends on a few factors, such as the severity of the injury, the extent of the damages, and the current state of their case. Generally speaking, the average length of pre-settlement funding will last anywhere from 10 days to a year, depending on the individual’s circumstances.
The main purpose of pre-settlement funding is to provide financial support to those who have suffered personal injury, while they await compensation from a court. Most pre-settlement funding companies offer a simple loan, called a pre-settlement advance, based on a percentage of the expected court settlement or verdict. The borrower has to pay back this loan, including legal fees and expenses, once their case reaches a favorable outcome.
In some cases, the pre-settlement advance may be daunting, but ultimately, it provides greater financial assistance than most other forms of short-term loans. Pre-settlement funding will help an injured individual pay for rent/mortgage, medical expenses, groceries and other related expenses. It also assists in paying for legal fees and other court expenses, helping to ensure the injured individual has a better chance of success in their case.
The amount of funding provided to an individual depends on several factors, such as the estimated value of the personal injury case, and the amount of financial aid the client applies for. It is important to consider any potential risks before accepting pre-settlement funding and to understand that the funding may only be available over a limited period of time.
When an individual receives pre-settlement funding, it typically comes in the form of a structured payment plan set up between the injured party and the pre-settlement funder. Through this plan, the injured party will make regular payments towards the loan and may receive up to one year of support. The loan will be fully paid off once the court makes a favorable ruling, and the entire settlement is released to the plaintiff.
To sum up, pre-settlement funding can provide a much- needed lifeline for those who have suffered a personal injury and are awaiting financial compensation. The length of the funding can range from 10 days to a year, depending on the individual’s circumstances and the degree of their injury. It is important to consider any potential risks and ensure the client fully understands the loan terms and process before proceeding. Ultimately, pre-settlement funding can provide the financial support an injured person needs to pay for their living and medical expenses while they await financial compensation from the court.
