There are lots of terms for legal funding, but don’t let that confuse you. Legal funding is sometimes called certified funding, pre-settlement funding, and personal injury funding. It can also be referred to as funding for lawsuits or legal settlement loans. Regardless of the terms being used, they all mean the same thing: a cash advance against a future lawsuit judgment or settlement award. Certified Legal Funding specializes in providing people with money to sustain themselves before the lawsuit settlement pays out.
When you’re faced with high medical bills and other living expenses, money from a lawsuit can be a real lifeline. But the process can be daunting if you’re not sure how to go about getting a cash advance. The staff at Certified Legal Funding knows all about legal funding for lawsuits and has answered commonly asked questions below.
How does legal funding for lawsuits in Tampa work?
Legal funding for lawsuits is a relatively new type of financial product. It’s offered to plaintiffs waiting to win or settle a lawsuit. Here is how it works: After you file a personal injury claim, you can apply for pre-settlement funding. Then, in collaboration with your attorney, the lawsuit funding company evaluates your case and determines how much you can expect to receive when you win your case or negotiate a settlement. The settlement funding company then offers you a sum of money, usually available to you in less than 24 hours.
Do legal funding companies approve every application?
Unlike traditional bank loans, personal injury settlement loans are not based on your credit score. In fact, it’s based only on the circumstances of your case. But that doesn’t mean that every application is approved by default.
For example, at Certified Legal Funding, an application may be rejected if the plaintiff doesn’t hire a personal injury attorney. Another common reason an application does not go through is if the plaintiff applies too soon before the required paperwork is available (such as police and medical reports).
What happens to legal settlement loans if the plaintiff loses the case?
One of the reasons plaintiffs decide not to use certified funding is that they worry that they will lose their case and end up in even more debt than they were before the lawsuit. But this is a common misconception about legal funding.
Since legal funding is an advance against your future settlement, if you happen to lose your case, you don’t have to repay anything. And there are no monthly payments to worry about before you negotiate a settlement. You can use the cash advance as you see fit – whether it’s to pay your bills, your mortgage, your tuition, or your car payments.
How is the cash for lawsuits paid back?
The pre-settlement loan is paid from the settlement you negotiate after other expenses, such as the attorney’s fees and litigation expenses, are covered.
Can you apply for legal funding over the phone?
People are often reluctant to spend an entire day crammed in an office, signing endless papers to get a loan. The good news is that you can apply for a lawsuit loan over the phone. Just call Certified Legal Funding at 800 922-7439. You can also apply by visiting CLF’s online application and entering your contact details.