In personal injury claims, plaintiffs have two options, i.e., pursuing trial litigation or agreeing to a settlement.
The out-of-court settlements are finalized to avoid the exorbitant cost of litigation and the delay for an unexpected duration of time. In these cases, the defendant generally pays monetary compensation to the plaintiff as a settlement.
The monetary settlement paid by the defendant varies from one case to another. It is finalized after considering the medical bills, pain, psychological trauma, and job loss caused to the plaintiff due to the personal injury caused by the defendant.
In out-of-court settlements, a claimant has to sign a settlement release form stating that they will not pursue further legal action against the defendant on the exact cause of action. When a victim signs the release form, the insurance company agrees to send the settlement check to the claimant. And it can take months before receiving a settlement check after signing a settlement agreement.
As the settlement check may take weeks or months to arrive, depending upon the parties involved in the case, even after a plaintiff receives the due portion of the check, it can take weeks before the bank clears it out, depending on how large the amount is.
How to get settlement money early
Although you cannot get your settlement check early on in your case, upon consideration and approval, you can use pre-settlement funding to take out money before receiving your final settlement.
If your case has not yet settled and your injuries prevent you from working, or you need money to pay medical bills and other expenses, your lawyer may approach a funding company to help you get settlement money early on.
To get settlement money early, a legal funding company would have to consider different factors such as your financial needs, liability, insurance limits of the defendant, attorney’s full collaboration, and the injury and your treatments.
For example, an accident where the plaintiff is severely injured could incur high medical expenses. Depending on the severity of the injuries, many victims cannot continue employment leading to no other source of income.
If you are in this situation, you do not have to wait for months and, in some cases, years to receive the compensation awarded in the case to get the money you desperately need.
You can get settlement money early by applying for a pre-settlement advance.
What is a pre-settlement advance?
Pre-settlement funding (or a pre-settlement advance) is a no-risk loan against a pending settlement and is provided at any stage of a personal injury case.
Eligible plaintiffs receive either jumbo sums or monthly installments to fulfill all financial needs while waiting for the lawsuit to conclude and the compensation to payout.
Pre-settlement funding is considered the most viable option available to the claimants who need to get settlement money early on as an advance. You do not have to worry about credit scores or employment checks to qualify and since is non-recourse and you only pay back the funds if you win your case.
Similarly, you do not have to stress about the borrowed funds if you are unsuccessful in winning your litigation because your assets won’t be touched.
Qualify for a lawsuit loan
Litigation is a lengthy process, and it can take several months and, in some cases, years to decide the success of a case. If your case is in court and has a high probability of winning, you may qualify to get settlement money in advance from your pending settlement check before your lawsuit settles.
The repayment of a cash advance on a pending lawsuit is only deducted from the final settlement check after it pays out.
Apply for a lawsuit loan with Baker Street Funding to help you get settlement money early and advanced to you in less than 24 hours from approval.
Our pre-settlement cash advance interest rates are the lowest in the industry, and our rates are capped.