How Pre-Settlement Funding Can Help You Avoid Financial Ruin
When disaster strikes, it can have a devastating effect on your finances. Recovering from loss can take years, and if you don’t have the funds to pay for basic necessities like food and shelter, then your financial future is in serious jeopardy. Fortunately, you have one option to help you get back on track: pre-settlement funding. Pre-settlement funding, also known as a lawsuit cash advance, provides access to money if you’re waiting for the outcome of a legal dispute. Here’s how pre-settlement funding can help you avoid financial ruin.
What Is Pre-Settlement Funding?
Pre-settlement funding, or lawsuit loan, provides a lump-sum of money to plaintiffs who are awaiting the outcome of a trial or settlement. The funding is based on the likelihood of success of the plaintiff’s case and allows them to receive the money they need before the case is settled.
This type of legal funding is a great option for plaintiffs who cannot manage the wait for trial or a settlement and cannot make ends meet while the case is being litigated. It also provides extra financial security for the plaintiff and their family in the event of a judgment being made against them.
How It Works
Applying for pre-settlement funding is a fast and easy process. It typically requires little to no documentation and is usually approved within 48 hours of submitting an application. Generally, all that is required is a copy of the lawsuit, the attorney’s paperwork, and the plaintiff’s contact information.
If approved, the plaintiff will obtain a lump sum of cash which can be used to cover medical costs, living expenses, attorney fees, and anything else that may be necessary while waiting for the outcome of the lawsuit. The best part is that the plaintiff is only required to repay the loan if the lawsuit is successful.
Advantages of Pre-Settlement Funding
The primary advantage of pre-settlement funding is that the plaintiff has access to money without having to wait for a judgment or settlement. This means that the plaintiff can handle their expenses without having to rely on other sources of income. Additionally, pre-settlement funding allows the plaintiff to maintain a steady stream of income and not have to worry about any financial hardship until the final verdict is rendered.
Furthermore, because pre-settlement funding does not require any collateral, there is no risk of losing assets due to a bad decision. The plaintiff can simply wait for the outcome of the lawsuit and not worry about debt or possible bankruptcy.
Finally, in some cases, pre-settlement funding may even improve the chances of success of the lawsuit. Because the plaintiff may no longer be in a desperate financial situation, they can be more focused on the lawsuit and focus on achieving a better outcome.
Disadvantages of Pre-Settlement Funding
One of the primary disadvantages of pre-settlement funding is that they are not available to everyone. Pre-settlement funding typically requires that the plaintiff have a reasonable chance of success. In addition, many lenders require collateral and some may even require that the plaintiff have a good credit score.
Additionally, there may be high interest rates associated with pre-settlement funding. Depending on the lender, the plaintiff may end up paying more than double the amount that was loaned due to the added fees and high rate of interest.
Conclusion
Pre-settlement funding can be a helpful tool for plaintiffs who are awaiting the outcome of a legal dispute. It allows them to obtain the money they need without having to wait for the dispute settlement, and allows them to cover their expenses while they wait. However, it’s important to understand the terms and conditions of the loan before applying, and to make sure that it’s the right option for their circumstances.
