How Pre-Settlement Funding Can Help You Get Back on Your Feet
It is no secret that life can sometimes take unexpected turns, leaving us finding ourselves in desperate situations and struggling to get back on our feet. Having a personal injury can be especially daunting; medical bills are piling up, the financial strain is mounting and to make matters worse, the legal proceedings might take a while before the case is finally resolved, leaving you without the finances to cover daily living expenses or medical treatments. Pre-settlement funding can be the solution to help you get out of troubled waters.
Pre-settlement funding is a type of non-recourse loan provided to individuals who have a pending personal injury lawsuit or claim. It provides them with the money they need in order to stay afloat while their lawyer is navigating the legal process to achieve a successful settlement. It is designed to bridge the gap between the filing of the claim and its final resolution, and to help personal injury victims pay their bills and continue to manage their financial obligations.
Pre-settlement funding is the best choice for people who need money but cannot get a traditional loan for severali reasons. As it is non-recourse, you don’t have to provide any collateral nor a credit rating. Neither will it impact your credit score and your ability to get a loan later on.
Another major advantage of pre-settlement funding is that it is entirely risk-free. The borrower is only required to pay back the advance on the claim if he or she wins the case and receives a settlement. If the case is lost or there is no settlement, the borrower isn’t obligated to pay back the loan or the interest associated with it.
Because of the associated risks, pre-settlement funding is often more expensive than a traditional loan. What is surprising though is that, depending on the case and the settlement amount, a borrower might still come out with money in his/her pocket even after paying back the pre-settlement loan plus interest. This is because pre-settlement funding companies often purchase a portion of the upcoming settlement, at a discount, so that the recipient of the advance can get the money he or she needs right away.
Having the extra funds to cover daily living expenses, medical bills, repairs and any other immediate needs, enables you to take the necessary measures and make the needed treatments to recover from your injury with peace of mind. You can use the money to keep yourself afloat while your lawyer is negotiating with the insurance company, or until your case has weakened and won’t bring you any profit.
Moreover, pre-settlement funding can buy time for you, time to allow your lawyer to negotiate a larger settlement. Without the added financial stress, your attorney will be able to strategize and prepare evidence in an efficient and effective way.
At the end of the day, pre-settlement funding offers you an invaluable opportunity to get back on your feet and make the most of the situation, no matter which way the court case turns out. Thanks to pre-settlement funding you can make sure that you get the necessary financial support that you deserve and that will help you get through difficult circumstances.
