No one wants to consider what would happen in the event of being part of an automobile accident, but being safe is always better than being sorry. One topic that deserves a bit of attention is that of pre-settlement funding. Pre-settlement funding is a loan product that is given to those waiting for their lawsuit to reach a conclusion or an out-of-court settlement. Simply put, it can be understood as a cash advance given to the plaintiff if they seem likely to win the case. Assuming that they do win, the plaintiff must repay the loan and any additional fees that may have been agreed upon. If the plaintiff doesn’t win their case, however, they are not expected to repay the debt.
Most commonly, pre-settlement funding is intended to assist in lawsuits that involve personal injury of some variety. If the victim is injured to the point of being incapable of working or maintaining their income, they may require monetary assistance until a settlement is awarded. This funding makes it possible for the plaintiff to cover their bills, eating expenses, and other unavoidable necessities. In certain situations, an insurance company may try to prolong the time before a settlement is reached in an attempt to have the plaintiff agree to a reduced amount.
Companies that offer legal finance services such as these can be a great deal of help when someone is in a tight financial situation while preparing to receive their settlement payout. Typically, the lender will get in touch with the plaintiff’s lawyer in order to receive information needed to determine if the case is eligible for pre-settlement funding. Documentation required includes the plaintiff and attorney’s retainer agreement, an incident report, proof of the plaintiff’s insurance, medical bills, and potentially other related items.
This information is used by the lender in conjunction with the opinions of the lawyer to determine the likelihood of winning the case. A Purchase Agreement is then signed, assuming the application is approved. When the lender receives the signed agreement, the money can finally be transferred to the plaintiff’s account. This process can take anywhere from a few days to several months, determining on the specific severity of the case. If the case happens to continue for longer than the loan can support the plaintiff, they may apply for additional funding.
If you feel as if you are applicable for pre-settlement funding, contact your local accident lawyer in Los Angeles to discuss your case. More often than not, well trained lawyers are able to form a general opinion as to whether or not your specific situation will have a chance to be approved. If you are struggling to maintain a bare minimum livelihood due to being injured, take action and get the money you deserve today!