The following is a guest post.
If you have been injured in an accident and have filed a civil lawsuit, you might consider pre-settlement funding. People who have been injured in an accident often cannot work but still have living expenses. A pre-settlement company provides the victim of an accident with money prior to the resolution of a civil lawsuit. The median length of a civil lawsuit is nine months, which has remained constant in recent years, according to a Princeton University study. But many cases take longer, because insurance companies want to drag out the process. According to the study, on 1.8% of cases went to trial. That was down from 11% in 1962.
“Pre-settlement funding is beneficial to people who are injured, especially those who cannot work,” said Sara Murphy, administrator at Cash in Your Case, a pre-settlement funding company in New York.
Here are the answers to several questions you might have about using a pre-settlement funding company:
What types of pre-settlement funding are there?
In general, pre-settlement takes two different approaches. The first is a lawsuit loan. The other is pre-settlement financing. While they sound similar, they are very different. A loan lawsuit, like the name implies, is a loan. A company loans you a certain amount of money based on the expected outcome of a lawsuit. You are required to pay the money back. On the other hand, pre-settlement financing is an advance. You pay the money back once the lawsuit is resolved. If you lose the case, you’re not required to pay the money back. Both a lawsuit loan and pre-settlement financing will charge you interest for the money, so make sure you read the contract before signing.
How does the process work?
If you are considering pre-settlement funding, you start with an application. That means you provide the particulars of your case and a little about your background. You will also give the pre-settlement company your attorney’s name. The pre-settlement company will research the lawsuit and evaluate the potential for a financial resolution in the case. Based on that information, you will be presented with terms for pre-settlement funding. You must decide if you want to accept the terms. It’s usually best to talk with your attorney. He or she has a good understanding of your case and the chances of winning a significant sum in a lawsuit. The process can take as little as 24 to 48 hours.
What can I use the money for?
You’re allowed to use the money for anything. It’s your money. Most people will pay a mortgage or living expenses. Others pay off medical expenses or outstanding credit card bills. You should talk with your family and decide the best avenue to spend the money.
There are several companies that offer either pre-settlement financing or lawsuit loans. Most have a websites. Some of the larger companies are reviewed and rated online. Also, ask questions.