Can I receive pre-settlement funding for a medical malpractice case?

Pre-settlement funding is an important part of pursuing a medical malpractice case. It allows those who have been wrongfully injured to stay afloat financially while they wait for the case to be resolved. Pre-settlement funding can provide a monetary lifeline for victims of medical malpractice and their families who may be struggling to make ends meet.

Medical malpractice cases can be complicated and take a long time to resolve. Victims of medical malpractice who are unable to support themselves and/or their families financially during this process may be eligible for pre-settlement funding. Pre-settlement funding is not a loan, but rather a cash advance on the potential settlement or award of the litigation. The amount of the pre-settlement funding a victim can receive depends on the details of his or her case and the estimated likelihood of success.

The process of applying for pre-settlement funding typically begins when the victim contacts a funding company to discuss his or her case. The funding company will review the details of the case and discuss the various funding options that may be available to the victim. The goal of pre-settlement funding is to provide the victim with money to pay for medical bills, rent, and other expenses while waiting for the medical malpractice case to be resolved. These funds are usually provided in exchange for a lien or security interest in the victim’s future settlement.

Most pre-settlement funding companies will assess a case based on the severity of the injury or damages incurred by the victim. Severe damages can kickstart the pre-settlement funding process as these damages are considered highly likely to lead to a successful lawsuit and a positive outcome for the victim.

In addition to the severity of the injury, the attorney representing the victim in the medical malpractice case will also be taken into consideration when pre-settlement funding is offered. The funding company will evaluate the attorney’s reputation, success rate, and history with medical malpractice cases to determine the likelihood that the victim will win his or her case. The ability of the attorney to negotiate a favorable settlement or take the case to trial will also be a big factor in the pre-settlement funding decision.

The financial background of the victim and his or her ability to settle the case on their own will also be considered. If the victim has other financial resources such as assets or a steady job, the pre-settlement funding company may require that these are tapped before providing any funding. This is to ensure that the victim does not unnecessarily deplete their own resources when pre-settlement funding is available.

While pre-settlement funding can offer a lifeline for victims of medical malpractice, it is important to understand the consequences of taking out a pre-settlement loan. In most cases, pre-settlement funding is expensive. The funding company will typically take a percentage (often up to 25%) of the victim’s eventual settlement as repayment for the cash advance. This percentage can be significantly higher depending on the risk associated with the case and the history of the attorney.

Taking out pre-settlement funding is a major decision and victims of medical malpractice should carefully weigh the pros and cons before going ahead with it. It is best to do extensive research and speak to an attorney before making a decision, as the consequences of taking out a loan can be significant if the case does not end in a favorable outcome.