Pre-settlement funding, also known as lawsuit funding or legal funding, is a type of financial assistance that is offered to plaintiffs who are involved in a personal injury lawsuit. It is a non-recourse cash advance that is provided by a third-party funding company based on the strength of the plaintiff’s case. In other words, the funding company takes on the risk of the plaintiff’s lawsuit and provides them with the cash they need to cover their expenses while they await their settlement or jury award.
How pre-settlement funding can help you avoid debt after an injury?
When you suffer an injury due to the negligence of another party, it can be an overwhelming experience. Not only are you dealing with physical pain and emotional stress, but you may also be facing significant financial challenges, such as medical bills and lost wages. In such situations, pre-settlement funding can provide valuable financial assistance to help you cover your expenses and avoid falling into debt.
Here are ways pre-settlement funding can help you avoid debt after an injury:
- Cover your expenses
Pre-settlement funding can provide you with the funds you need to cover your expenses while your lawsuit is pending. These expenses can include medical bills, lost wages, rent, utilities, and other living expenses. By covering these expenses, pre-settlement funding can help you avoid debt and financial stress while you focus on recovering from your injury and building a strong case.
- No upfront costs
Unlike traditional loans, pre-settlement funding does not require any upfront costs or credit checks. This means that you can receive the funding you need without adding to your existing debt or worrying about your credit score. Pre-settlement funding is based on the strength of your case, not your personal finances, so it can be a viable option even if you have poor credit or limited financial resources.
- No repayment until you win
One of the biggest benefits of pre-settlement funding is that you only repay the funding if you win your lawsuit. This means that you don’t have to worry about making monthly payments or accruing interest while your case is pending. If you lose your case, you don’t have to repay the funding at all, so there’s no risk of falling into further debt.
- Work with a reputable funding company
When considering pre-settlement funding, it’s important to work with a reputable funding company that offers fair terms and transparent pricing. Look for a company that has a proven track record of success, clear contract terms, and competitive interest rates. By working with a reputable funding company, you can ensure that you’re receiving fair and reasonable funding terms that won’t put you at risk of further debt. At Certified Legal Funding, our team of experts will work closely with you to resolve any doubts you may have regarding your case and necessary funding.
- Use the funding wisely
While pre-settlement funding can help you avoid debt after an injury, it’s important to use the funding wisely. Only borrow what you need to cover your immediate expenses, and avoid using the funding for unnecessary expenses like vacations or luxury items. By using the funding wisely, you can ensure that you’re able to cover your expenses without falling into further debt.
- Access to justice
Pre-settlement funding can also provide you with access to justice by helping you level the playing field against deep-pocketed defendants who may have significant financial resources to prolong the legal process. With pre-settlement funding, you can ensure that you have the financial resources to pursue your lawsuit and obtain the compensation you deserve.
Pre-settlement funding can be a valuable resource for those who are struggling with debt after an injury. By covering your expenses, providing no upfront costs, and no repayment until you win, pre-settlement funding can help you avoid debt and financial stress. However, it’s important to work with a reputable funding company and use the funding wisely to ensure a positive outcome.
Check out the rest of our page to get more insight into what we do and feel free to contact us in case you have any questions. We, at Certified Legal Funding, understand the financial and emotional difficulties that you can experience after a personal injury and are happy to address any problems you may have.