When you find yourself in the middle of a lawsuit or personal injury case, you’re likely dealing with significant financial burdens. And it could last for several years before your claim even goes to trial. Without proper legal funding, you may be unable to pay the costs of living and keep up with your normal expenses throughout this time. Here are six benefits that come from receiving pre-settlement funding.
1. Ease Financial Burden
One of the best benefits of a settlement loan is its potential to ease financial burden. Many cases involve long and expensive court battles, which can cost thousands upon thousands in legal fees. If you have already exhausted your current financial resources, adding a huge expense like litigation can make matters worse.
Many litigants find themselves stuck in a situation where they need money to pay for daily living expenses. As a result, they aren’t able to take time off work to attend long trials. By applying for pre-settlement funding, plaintiffs can get fast cash from their settlement or judgment upfront. That way, they don’t have to worry about making ends meet in addition to handling their case.
2. Take Care of Important Expenses
When people make a personal injury claim, there are costs associated with pursuing their legal action. This means that if you were involved in an accident and were not at fault, you may be responsible for out-of-pocket expenses such as doctor’s bills or vehicle repairs.
Consider using pre-settlement funding to get money to pay for these things before your settlement. This is a great way to take care of important expenses immediately without worrying about financial hardship later on.
3. Get Faster Results
It can take months, even years, to resolve when you are involved in a serious injury or wrongful death case. That’s because insurance companies and big corporations will do anything they can to drag out court proceedings as long as possible. The longer it takes for you to get what you deserve, the more your pain and suffering worsen.
However, if you have pre-settlement funding on your side, you’ll avoid all that waiting by paying for damages upfront before your settlement is reached. You’ll get faster results without having to borrow money from family or friends. And most importantly, without incurring additional debt because of legal fees and interest payments.
4. Gain Protection from Creditors
A great benefit of pre-settlement funding is that it can protect you from creditors, making it possible to continue living a normal life even when creditors are hunting you down. If and when your case settles, you’ll receive a lump sum that covers your settlement and any pending legal fees.
However, if there aren’t enough funds available at settlement to cover your legal fees, money from a pre-settlement funding company will be used to pay them on your behalf. This means you don’t have to worry about reducing future compensation for yourself to pay off those bills right away. You can simply focus on securing a favorable outcome with minimal distractions.
5. Hire a Good Lawyer
If you can’t afford to hire a lawyer, but want one to help you settle your case out of court, then pre-settlement funding is a great option. Most lawyers will agree to work on a contingency fee basis. That means that instead of getting paid by getting paid a percentage, they are paid when they get you settlement money.
This typically comes in two parts: part upon settlement and another portion after trial date, depending on how your case goes. This can be an additional benefit from using pre-settlement funding. You don’t have to pay it back unless there is a successful settlement or verdict against the at-fault party.
6. Your Credit Score Doesn’t Matter When Applying
Typically, when you apply for a loan, your credit score determines whether or not you’re approved. However, in a pre-settlement funding arrangement, it doesn’t matter if your credit score is poor.
There are no checks done on your credit history, and there is no judgment placed on how many times you’ve applied for loans in the past. You can get money even if you have bad credit and bad debt because pre-settlement funding isn’t based on that at all.