Can I still receive pre-settlement funding if I have a pending bankruptcy case?
For those filing for bankruptcy, the worry and turmoil of going through the long and strenuous process may be stressful. With the thought of debt relief, people who file for bankruptcy begin to hope for a fresh financial start. But as they navigate their way through this complex and expensive scenario, they may be wondering if they will be eligible for pre-settlement funding? This type of funding helps to cover expenses if you have a pending lawsuit.
Bankruptcy is a legal process and a type of financial relief for those who are overwhelmed with debt and need to reorganize their finances. It is a way to get a fresh start and help to eliminate financial worry. It is important to keep in mind that pre-settlement funding is not connected to filing for bankruptcy, it is a way to give those seeking legal action a financial option while the proceedings are underway.
Pre-settlement funding enables those with legal claims to borrow money against their lawsuit in order to pay bills and other expenses while they wait for a resolution or a settlement. Pre-settlement funding is offered by specialized companies that focus on providing financial assistance to those who have filed a lawsuit. These companies understand that a lawsuit can take months, even years, to be resolved and can provide cash advances to litigants, no matter their financial situation.
Having a bankruptcy case does not directly impact your eligibility for pre-settlement funding. However, it is important to keep in mind that income of any kind can complicate the filing process. Pre-settlement funding is based on the strength of a litigant’s legal case and whether or not the company offering the loan believes the case has a favorable outcome. Therefore, if the income from the pending lawsuit will interfere with your bankruptcy proceedings, you may need to speak to a bankruptcy attorney to determine how the pre-settlement funding could potentially impact the bankruptcy filing. Bankruptcy can be a complex process and it is important to be aware of any potential complications that could arise.
It is also important to note that most companies offering pre-settlement funding will require anyone with an open bankruptcy case to speak to both the pre-settlement funder and their bankruptcy attorney before they can be approved for a loan against their legal claim. Additionally, pre-settlement funding is not a long-term solution, so it is important that everyone discussing the loan understand the risks involved and the time frame within which the loan must be paid back.
Overall, those with a pending bankruptcy case should not be discouraged from applying for pre-settlement funding. There may be some additional considerations to discuss with both their bankruptcy attorney and the pre-settlement funder, but with careful consideration, pre-settlement funding could be a great way to help cover expenses while the bankruptcy case is pending. It is important to remember, as it is with any financial process, to do research on the company and its loan terms in order to make the most informed decision and to protect yourself financially.
