If you have filed a personal injury lawsuit to help you cover the expenses related to your accident, you are probably anxiously anticipating the payment to make it possible for you to pay your bills. You filed your suit within the time limit of two years, so you are probably hoping that the courts will be time-conscious, as well. However, it can take years for your suit to conclude, leaving you with bills to pay and dwindling cash on hand.
Pre-settlement financing is money up front that you pay back with the damages you are awarded once your suit is decided in court. Although there are often fees and interest charged on the money, it is not a traditional loan. In most cases, you will not be required to pay back anything if you do not win your case. The pre-settlement financing will not only help you to pay bills, but also allow you to wait out the court case, potentially leading to a larger payout than if you were forced to settle prior to the trial.
Should I Seek Pre-Settlement Financing?
Although pre-settlement financing seems like an answer to your financial difficulties, you should not seek financing without first considering the downsides and your specific situation. The potentially high interest rates, uncertain time frame, and lack of regulation can make acquiring pre-settlement funding difficult.
Pre-settlement financing is best used in the short term, since interest rates can be high. However, it can be difficult if not impossible to predict how long your case will take. In some cases, the longer your personal injury suit takes to settle, the more you will pay in interest. In fact, the law does not clearly legislate terms allowed in pre-settlement financing. While many states are at least considering enacting regulations to limit insurance rates and other terms, Georgia does not currently have any laws in place regarding pre-settlement financing. You should review the terms offered very carefully to ensure that you do not need to pay back the money if you do not win your case, as well as to know the exact interest rates and fees.
Obtaining Financing
Not every case will qualify for pre-settlement financing. There is an application process during which the funding company will examine your case in detail. In particular, you will need to have:
- A strong case
- All relevant information on your case
- Your attorney’s cooperation
Once you have completed the application and provided the company with your legal records, they will determine whether or not you have a good chance of winning your case. If so, you are likely to receive a financing offer. However, the amount will be based on what you are likely to win, so be aware that it will likely not be the full amount you have listed in your suit.
Contact Us Today
If you are considering pre-settlement financing to help you make ends meet while waiting on your personal injury case to close, talk to an experienced personal injury financer like those at Capital Financing immediately. You may be able to get the money you need now.
