Can I receive pre-settlement funding if I have already received funding from another company?
Pre-settlement funding is an essential service for individuals dealing with the aftermath of an injury due to the negligence of someone else. It provides individuals with a cash advance in the form of a loan, which allows them to cover costs and live their normal lives as they pursue legal action against the responsible parties. With pre-settlement funding, plaintiffs have access to the resources they need to cover medical expenses, pay rent or mortgage, and deal with other financial commitments while waiting for their cases to be resolved. But the question remains – can individuals receive pre-settlement funding if they have already received funding from another company?
The answer to this question is yes, although the circumstances under which this is possible can vary. Generally speaking, most pre-settlement funding companies will not reject an applicant simply because they have received funding from another company. This is because the pre-settlement funding company will review the applicant’s individual situation, including their current financial commitments, the amount and duration of their pre-settlement funding request, and their legal case’s strengths and weaknesses.
If the pre-settlement funding company chooses to offer the applicant a loan, it is likely that the total loan amount and repayment terms will adjust to account for the existing pre-settlement funding. For example, if an applicant already has $10,000 in pre-settlement funding from another company, the new pre-settlement funding company might agree to cover $5,000 of the applicant’s additional needs. The applicant’s total liability would still be $15,000, but paying off the amount in multiple, smaller payments would likely be easier for them.
When considering a pre-settlement funding loan, it is also important to be aware of the associated risks. The pre-settlement funding process itself can be expensive and not all applicants will qualify for funding. As such, it is important to read the terms and conditions of any loan carefully before signing an agreement to ensure it is suitable and the associated repayment terms are reasonable.
Furthermore, it is important to keep in mind that pre-settlement funding is not a substitute for legal representation. Pre-settlement funding companies cannot guarantee the outcome of a case, and if a plaintiff is unsuccessful in their claim, they may be liable for repayments that exceed their settlement or awarded compensation.
In short, it is possible for individuals to receive pre-settlement funding even if they have already received funding from another company. Though lenders may consider an individual’s existing pre-settlement funding loan when approving any additional pre-settlement funding requests, the applicant should be aware of the associated risks. It is also important to seek advice from a legal professional to ensure an optimal outcome for the case.
