Pre-settlement funding is a financial lifeline for individuals involved in legal cases. These funds provide financial stability to plaintiffs while they await the resolution of their lawsuits. However, many plaintiffs wonder how many pre-settlement fundings they can get and what factors influence their eligibility. In this comprehensive guide, we will explore the world of pre-settlement funding, shed light on the factors affecting eligibility, and provide insights into how many pre-settlement fundings one can obtain.
Understanding Pre-Settlement Funding
Before delving into the question of how many pre-settlement fundings you can get, it’s crucial to understand what pre-settlement funding entails.
Pre-settlement funding is a partial purchase of, or in some states a loan, based on your pending lawsuit. Unlike other forms of financing, like a traditional loan, a pre-settlement funding is non-recourse, meaning that if the plaintiff loses their case, they are not obligated to repay the funding company. Repayment is contingent upon the successful outcome of the lawsuit. If the plaintiff wins the case, they repay the funds, plus fees, from the settlement amount. But if the plaintiff loses their case, they repay nothing.
Factors Affecting Eligibility for Pre-Settlement Funding
Several factors can influence your eligibility for pre-settlement funding. It’s essential to be aware of these factors, as they can determine whether you can obtain additional fundings.
- Type of Lawsuit: The type of lawsuit you’re involved in can significantly impact your eligibility. Funding companies are more likely to provide pre-settlement funding for cases with a strong likelihood of success, such as personal injury, medical malpractice, or product liability cases.
- Attorney Cooperation: Cooperation from your attorney is essential. Most funding companies require the involvement of an attorney who supports the funding application and agrees to repay the funding from the settlement amount.
- Strength of the Case: The strength of your case is a critical factor. Funding companies assess the merits of your lawsuit and its potential for success. A strong case is more likely to secure additional funding than a weak one.
- Estimated Settlement Amount: Funding companies consider the estimated settlement amount when determining eligibility. If your lawsuit has a substantial potential settlement, you may be eligible for a larger pre-settlement funding amount.
- Outstanding Funding: If you’ve already received pre-settlement funding for your case, it may impact your eligibility for additional funding. Some funding companies may consider the total amount of fundings you’ve received when assessing eligibility for a new one.
- Other Factors: While your credit score is not a factor in a funding decision, other financial liabilities including bankruptcies and liens such as child support can also disqualify you from funding.
Have you been involved in an auto accident, slip & fall or workers’ comp claim and need help with pre-settlement funding? Oasis is here to help!
How Many Pre-Settlement Fundings Can You Get?
The number of pre-settlement fundings you can obtain is not set in stone. It depends on several factors, including the ones mentioned above. Let’s explore some scenarios that can help you understand how many fundings you might be able to secure:
Scenario 1: Multiple Ongoing Lawsuits
If you are involved in multiple ongoing lawsuits, you may be eligible for pre-settlement funding for each case. However, eligibility for each case will be assessed separately based on the factors mentioned earlier. Having multiple strong cases with significant potential settlements increases your chances of obtaining multiple fundings.
Scenario 2: Sequential Cases
In some instances, plaintiffs may have sequential cases arising from different incidents. Each case will be evaluated independently, and you may be eligible for pre-settlement funding for each case, provided they meet the funding company’s criteria.
Scenario 3: Larger Settlements
If you have a single lawsuit with a substantial potential settlement amount, you may be able to secure a larger pre-settlement funding amount. Funding companies are more likely to provide larger or additional fundings for cases with significant expected settlements.
Scenario 4: Repayment Capacity
Your ability to repay the funding from your settlements plays a crucial role. If you have received pre-settlement funding for multiple cases and your settlements are successful, you must allocate a portion of each settlement to repay the respective fundings. Your repayment capacity may influence the willingness of funding companies to work with you on multiple cases simultaneously.
In the world of pre-settlement funding, there is no fixed limit on how many pre-settlement fundings you can obtain. Your eligibility depends on a combination of factors, including the type and strength of your lawsuit, the estimated settlement amount, your attorney’s cooperation, and the policies of the funding companies you approach.
It’s crucial to conduct thorough research, consult with your attorney, and explore multiple funding options to make informed decisions. Remember that pre-settlement funding is a financial tool designed to provide relief during the litigation process, and it can be a valuable resource for plaintiffs seeking financial stability while awaiting the resolution of their cases.
How Oasis Financial Can Help
Fighting your case to achieve the justice you deserve is no easy feat. Even with the best lawyer in the world, rent, mortgage payments, medical bills, utilities, and grocery bills wait for nobody.
If you’re struggling with household or medical expenses and cannot work, you may wonder what your options are.
At Oasis Financial, we provide pre-settlement funding to anyone currently pursuing a lawsuit for an accident they sustained. Getting approved for pre-settlement funding gives you the breathing space to pay your bills, concentrate on your recovery, and maximize your compensation. What’s more, if you lose, you pay nothing.
Contact Oasis Financial now to learn more about how it works or apply for your pre-settlement funding.
Oasis provides pre-settlement funding, also known as consumer litigation funding, to its customers through different products depending on their state of residence or cause of action. Many consumers will be provided pre-settlement funding in the form of a purchase agreement, which assigns a portion of the pending proceeds from their legal claim. Other consumers, such as those in SC and CO will be offered a funding in the form of a pre-settlement loan, sometimes referred to as a lawsuit loan. These transactions have important differences, therefore, consumers should carefully review and be aware of the type of transaction that is offered to them by any funding company.