If there is one thing to be learned from the COVID-19 pandemic, it is that we should never take our health and safety for granted. Illness or injury can strike at any time, leaving any of us in dire financial straits. Fortunately there is relief for plaintiffs in personal injury cases who are struggling to make ends meet while their cases are pending.
This relief is known as pending lawsuit funding or pre-settlement funding. Here is how it works. The plaintiff in an ongoing personal injury lawsuit submits an application to a funding company. The company then evaluates the details and merits of the plaintiff’s case. If the plaintiff qualifies the company will make a cash offer. It will do so with the proviso that it will recoup the amount plus fees from any award or settlement when the case is finalized.
Keep reading to learn more.
The key to getting the financial relief you need without any unpleasant surprises is to know the terms and conditions associated with a pending lawsuit funding offer. Or more specifically, it is understanding the fine print and how the process works before accepting the offer. Therefore, be sure to:
- Ask about any fees, or accruals how they are calculated and how they are applied. This way you will know exactly how much you will “owe,” and how much the company will claim from any settlement you receive.
- Know exactly where you are applying for funding. Are you applying directly with the funding company, or an intermediary? An intermediary, or broker, usually adds hefty fees to each transaction and submits your application to multiple funding companies, thereby creating a lot of unnecessary work for your attorney.
- Discuss your interest in pursuing pending lawsuit funding with your attorney before applying with any funding companies. He or she me able to recommend a funding company or refer you to one that he or she has an agreement with. Making your lawyer aware of your intentions also facilitates the application process. Specifically, it allows him or her to organize all of the case documents the funding company needs to make a decision about your application.
- Talk to your lawyer about how much you can expect to receive from a settlement or award. Once you know your estimated case value, you can decide whether applying for pending lawsuit funding is worthwhile. This is because a typical pending lawsuit funding offer is for roughly10 to 20 percent of the case’s estimated value. If you think that percentage can help cover your daily expenses until your case is resolved, go ahead and apply.
- Be prepared to answer questions about your personal injury case before you apply for pending lawsuit funding. Knowing the general facts of your case facilitates the application process by limiting the questions the funding company has for your lawyer. This means there is less need for time-consuming phone calls, e-mails and so forth.
- Know which legal documents you’ll need to expedite the application process. In most cases these are copies of the filed lawsuit, medical records, the demand letter and police report (if your injury occurred as the result of a motor vehicle accident or any other incident documented by law enforcement). If you have these on hand when you apply, the funding company may not need to request them from your lawyer.
- Be realistic about how much you need and why you need it. Remember, the funding company will recoup the amount it provided to you from your final settlement or award. Any associated fees or accruals will also be claimed from the amount you receive when you win your case. Generally, there are no restrictions on how you can use the cash from a funding company. However, experts recommend limiting the use of funds for routine expenses and other essentials.
- Be realistic about your financial situation and explore other options. If you have a regular source of income through disability or another source, there is no need to apply for pending lawsuit funding. The same can be said if you have ample savings or family can provide financial support until your case is finalized.
- Be realistic about your eligibility for pending lawsuit funding. Remember, it is available only for plaintiffs in personal injury cases who need money to make ends meet until their cases are resolved.
We are here to help plaintiffs in ongoing lawsuits stemming from:
- Personal injuries
- Motor vehicle accidents
- Product liability
- Medical malpractice
- Premise liability
- And more
Visit our website or call us to submit your application, today.