Pre-Settlement Funding in Advance of Your Settlement

When dealing with a legal claim, finding the right financial support can be tricky. One option worth considering is pre-settlement funding. With this type of purchase agreement, instead of making regular payments and dealing with interest, you’re provided with cash in advance of your settlement payout based on the potential value of your case. This can be a real lifesaver for covering expenses and legal fees while you wait for your settlement.

We’ll break down how pre-settlement funding is different from a loan as you may know them, what types of cases qualify for pre-settlement funding, and what types of expenses these funds can be used for.

Pre-Settlement Funding

When considering financial options, understanding how a loan and pre-settlement funding differ can help you choose the best path for your needs. Below is a comparison of various areas:

1.     Determining How Much Money the Borrower Needs

Loans: Lenders typically assess how much money you need based on your creditworthiness, income, and other financial factors. They often provide a set amount that you’ll repay over time, regardless of your legal case’s outcome.

Pre-Settlement Funding: The amount you can receive is determined by evaluating the potential value of your legal claim. This is based on the strength of your case and its likely settlement amount, rather than your personal financial situation.

2.     Pre-Qualification

Loans: Pre-qualification involves an assessment of things like your income and financial history. This helps lenders determine if you’re eligible for a loan and the terms you might qualify for.

Pre-Settlement Funding: Pre-qualification is generally simpler and focuses on the details of your legal case. Income is not considered, as the funding is based on the expected settlement amount. However, a credit check is sometimes necessary to qualify for pre-settlement funding to check for prior liens.

3.     Documentation Needed

Loans: You’ll need to provide extensive documentation, including proof of income, employment history, and bank statements etc.

Pre-Settlement Funding: Documentation required includes details about your legal case and sometimes basic personal information. There is typically no need for extensive financial records.

4.     Submitting the Application

Loans: Applications are often submitted online or in person at a bank or financial institution. They may require a detailed application form and various documents.

Pre-Settlement Funding: Applications are usually simpler and can often be completed online or over the phone. The focus is on case information rather than personal financial details.

5.     Application Processing

Loans: Processing can take several days to weeks as lenders review your financial history, credit score, and the application details.

Pre-Settlement Funding: Processing is generally quick. It can take a few days to a week, depending on the complexity of your case. However, at Oasis Financial, this is often faster, with turnaround times often occurring within 24-48 hours.

6.     Application Approval

Loans: Approval depends on your credit score, income, and overall financial health. Financial instability or lack of collateral can lead to denial.

Pre-Settlement Funding: Approval is based on the evaluation of your legal claim’s potential value. Your personal financial situation does not impact approval, as the funding is secured against your case’s settlement.

7.     Fund Disbursement

Loans: Once approved, funds are typically disbursed in a lump sum or in installments based on the loan terms.

Pre-Settlement Funding: Funds are usually provided in a lump sum once your application is approved, helping you manage expenses while waiting for your settlement.

8.     Repayment

Loans: Repayment involves regular payments over a set term, with interest rates applied. Your credit score plays a significant role in the loan terms and interest rates.

Pre-Settlement Funding: Pre-settlement funding is considered non-recourse. This means repayment is contingent on the outcome of your legal case. Repayment is deducted from your settlement amount once the case is resolved. If your case doesn’t settle, you typically owe nothing, making it a risk-free option in terms of repayment.

Traditional loans and pre-settlement funding offer different approaches to securing financial support. If you’ll struggle with bills while waiting for your lawsuit to advance to the settlement stage, consider pre-settlement funding to help you through instead of a bank loan.

Type of Cases that Qualify for Pre-Settlement Funding

Pre-settlement funding can be used in a variety of legal cases where there is a pending lawsuit and a potential settlement expected. Some types of cases that typically qualify for pre-settlement funding, along with examples of incidents that might lead to such lawsuits, include:

• Personal Injury Cases
  • Car accidents, slip and fall accidents, and workplace injuries.
• Employment Disputes
  • Wrongful termination, workplace harassment, and discrimination.
• Premises Liability Cases
  • Injuries from unsafe conditions on someone’s property, such as broken stairs or unsafe walkways.
• Civil Rights Violations
  • Cases involving police misconduct, unlawful arrests, excessive use of force, or violations of constitutional rights.
• Wrongful Death Cases
  • Lawsuits filed by families for deaths caused by negligence or intentional harm, such as fatal car accidents or medical negligence.

Cases that qualify typically involve significant damages and a lengthy legal process, making pre-settlement funding a useful tool to help cover expenses while awaiting the outcome of a lawsuit.

How Pre-Settlement Funding Can Be Used

Once pre-settlement funding is received, it can be used to cover a variety of essential expenses and financial needs, such as:

• Living Expenses
  • Rent or mortgage payments, utilities, groceries, and other day-to-day living costs.
• Medical Bills
  • Ongoing medical treatment, therapy, medications, and doctor’s visits related to your case.
• Transportation Costs
  • Expenses for travel to and from medical appointments, court appearances, or other necessary trips.
• Childcare
  • Costs associated with caring for children, including daycare or babysitting services.
• Debt Repayment
  • Paying off outstanding debts or credit card bills that have accumulated while waiting for your settlement.
• Emergency Expenses
  • Unexpected costs that arise and need immediate attention, such as unexpected medical emergencies.
• Daily Necessities
  • Other essential items and services needed to maintain your quality of life, such as clothing, toiletries, or household supplies.

Using pre-settlement funding for these expenses can help alleviate financial stress and allow you to focus on your recovery and legal case.

Advantages of Using Oasis Financial

When you choose to work with Oasis Financial for pre-settlement funding, you’ll enjoy a smooth and fast application process. We have a high approval rate and often distribute funds on the same day they’re applied for and approved.

We also pride ourselves on our excellence in customer service. As the industry leader for over 25 years, we’ve been fortunate to have worked with over 350,000 individuals and families to get them financial assistance.

Questions or comments? Refer to our FAQ page or contact us to speak with a customer service representative.

The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. No attorney-client or confidential relationship is or will be formed by use of the site. Readers of this website should contact their attorney to obtain advice with respect to any particular legal matter. No reader, user, or browser of this site should act or refrain from acting on the basis of information on this site without first seeking legal advice from counsel in the relevant jurisdiction.