The U.S. legal systems allows individuals who were injured by a negligent person or entity to pursue compensation for damages via a legal claim. While this right is certainly one to appreciate, the fact is that the legal system moves rather slowly. The average personal injury claim takes months to settle, while some can take years. For those whose injuries have put them out of work and cost thousands of dollars in medical expenses, even a few months can mean no longer living comfortably and going without even the most basic of necessities.
If you are embroiled in a personal injury claim in which the defendant has money to spare, and if you do not think that you will make it through another round of negotiations without having to ask for government assistance, reach out to Capital Financing. At Capital Financing, we offer settlement advance loans to help individuals like you out of a tricky financial situation until your settlement money comes in.
Legal Funding is Not a Loan
A lot of plaintiffs refuse to take advantage of pre-settlement funding because of the big “What If.” What if…they lose their case and cannot afford to repay the loan? What if…the settlement is not as much as they had initially planned? What if, what if, what if…
Pre-settlement funding is not a loan. While some people refer to it as a “cash advance” of sorts, it is not that, either. A lawsuit loan refers to money that injured parties can use to cover the cost of living expenses, medical bills, and other costs while they are unable to work and before their case is settled. Unlike a tradition loan, repayment of said loan is contingent on one factor – whether or not the plaintiff wins.
If you win your case, your lawyer will disperse the funds as necessary. He or she will pay off your legal fees, medical expenses, liens, and other bills. One such bill is the cash advance. The company that advanced you the money will take the amount loaned plus a small fee and call it a day.
However, if your case does not end as you had anticipated—meaning, you do not win—the financing company cannot ask you to repay the loan. This is because lawsuit loan companies specialize in “non-recourse funding,” meaning that non-repayment is a risk they are willing to take.
Why You Should Seriously Consider Structured Settlements
Many people simply do not have the funds to get by between the time of an accident and the close of their legal case. This is especially true in cases in which the defendant has enough money to keep rejecting settlement propositions or worse, to go to court. For this reason, many personal injury plaintiffs settle prematurely or forgo a lawsuit altogether for fear that it will add to their post-accident costs. Doing either of these things is not a good idea.
Pre-settlement funding levels the playing field by taking the financial burden off the plaintiff and allowing him or her to focus on the case rather than his or her financial situation. Also, unlike a traditional loan, it does not create undue stress, as repayment is only necessary if the plaintiff gets paid. No matter which way you look at it, structured settlements provide a way for the plaintiff to always win.
If you are involved in a legal claim that seems to be never-ending, reach out to Capital Financing regarding a pre-settlement cash advance. It may be the best thing you do for yourself and your case.