Pre-settlement funding is intended to help plaintiffs cover their expenses while their case is still pending and they are waiting for a settlement or judgment.
It is important to note that pre-settlement funding is not a loan, but rather a cash advance against the future settlement or judgment that the plaintiff expects to receive.
It is well known that car accidents bring many devastating consequences, among all financial hardships and the long process of settling the case.
In this specific case, pre-settlement funding can be used to cover expenses such as medical bills, car repairs, lost wages and other related costs.
What are the steps when applying for pre-settlement funding
Research funding companies: Research different pre-settlement funding companies and compare their terms and fees. Look for companies that specialize in car accident cases and have a good reputation.
Contact the company: Contact the pre-settlement funding company and provide them with information about your car accident case. The company will evaluate your case and determine whether you are eligible for funding.
Submit an application: If you are eligible for funding, the company will provide you with an application to fill out. The application will ask for information about your case, your damages, and your attorney.
Provide documentation: The company may ask you to provide documentation to support your application, such as medical bills, police reports, and insurance information.
Wait for approval: Once you submit your application and documentation, the company will review your case and determine whether to approve your funding request. If approved, the company will provide you with a funding agreement that outlines the terms and conditions of the funding.
Accept the funding: If you agree to the terms of the funding agreement, you will need to sign it and return it to the company. The company will then provide you with the funding amount.
Repay the funding: Once your case is settled or a judgment is reached, you will need to repay the pre-settlement funding company from the proceeds of the settlement or judgment.
How to know if you qualify for pre-settlement funding?
Before applying for pre-settlement funding for a car accident, it is important to consider the following:
Eligibility criteria: Each pre-settlement funding company has its own eligibility criteria. You should research the company and determine whether you meet their criteria before applying.
Fees and interest rates: Pre-settlement funding companies typically charge fees and interest rates that are higher than traditional loans. You should carefully review the terms and conditions of the funding agreement and understand the total cost of the funding before accepting it.
Repayment terms: Pre-settlement funding is not a loan, but rather a cash advance against the future settlement or judgment that you expect to receive. You will need to repay the funding company from your settlement or judgment, so it is important to understand the repayment terms before accepting the funding.
Your attorney’s opinion: It is recommended to consult with your attorney before applying for pre-settlement funding. Your attorney can help you evaluate whether pre-settlement funding is the best option for your case and may be able to recommend a reputable funding company.
Conclusion
To obtain pre-settlement funding for a car accident case, plaintiffs typically need to apply with a pre-settlement funding company. The company will evaluate the case and determine whether the plaintiff is eligible for funding. If approved, the plaintiff will receive the cash advance, and the pre-settlement funding company will be repaid from the settlement or judgment when it is reached.
If you have any doubts or general questions we, at Certified Legal Funding in Tampa, are here to help make the whole process easier. Contact us and we will guide you through the necessary steps.
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