One downside of being a personal injury victim is your need for financial assistance to make it through while your case slowly winds its way through a clogged court system— because you may have little or no income as a result of the incident.
Whether you are unemployed or not, there is a method of financing called pre-settlement legal funding that may provide the cash you need during your personal injury case without income verification, credit checks, or financial statement proofs. You can use the advance for nearly any expense resulting from your accident, like paying rent or mortgage, debt, groceries, or other living expenses.
And the best part? Your approval is not based on your income, credit history, or financial statement. That’s right, you don’t have to be employed or have any source of income to get a cash advance on your pending lawsuit settlement.
Below we highlight the pre-settlement legal funding option, how it is entirely unlike traditional loans, and how it can fit your financial needs while you have little or no income after all.
Pre-settlement legal funding does not require income verification or financial statements
Pre-settlement legal funding is a non-recourse loan that does not require repayment until you have received a settlement or jury verdict in your favor. This type of funding is based on your future compensation. And, it is the strength of your case that is one of the most important factors in evaluating your application, and consequently, getting funding approval.
This is particularly beneficial for those injured in accidents who are unable to work or have limited income may prefer non-recourse funding over a traditional bank loan. This is because, unlike banks, legal funding companies do not require collateral or proof of financial information, such as income, employment, and credit. Similarly, they cannot require you to disclose documents such as pay stubs, or W2s, because they are not permitted to go after your assets, such as your bank accounts, car, or house if you lose the case and default.
For the loan decision-making process to progress, however, an attorney has to represent you, participate throughout the process, and present strong evidence of fault. It should be noted that while this financing option may not pose a risk for you, it does pose a greater investment risk for the funding company, resulting in higher costs compared to traditional bank loans.
Showing proof that your case has merits and chances of success
As noted above, given that a settlement advance company’s ability to get paid back is tied directly to the resolution of your pending lawsuit, your prior history in paying back loans, your current financial condition, and your income is not important to lenders.
A pre-settlement legal funding company is actually taking a deep look into the your case merits, value, and your chances of eventually getting compensated. Showing a lender the strong evidence that your injury is a result of the other party’s negligence and that the insurance company can fully cover medical procedures and damages over $50,000 can get you qualified fast. Failure to prove merits can result in outright denial of your funding application.
How does repayment work?
The legal funding company gets paid by your attorney once he or she receives the proceeds in his or her trust account. Whether the monetary recovery comes through a jury verdict in your favor or a settlement check with the other side, it is at that point, and not a moment sooner, that a lender gets paid back for whatever amount of financing it extended to you, along with any applicable interest and fees.
The takeaway
If you are a personal injury victim and you are having trouble making ends meet because you have lost your ability to earn money, consider applying for a lawsuit advance. Your current financial standing or your past financial track record is not part of the litigation funding criteria. Employment, income proof, being unemployed or work history do not increase or decrease lawsuit loan approvals.
Legal funding is non-recourse, so even if everything goes wrong and your lawsuit does not resolve in your favor, you will not lose anything you own. The amount of paperwork you will need to complete is minimal, and funds are available quickly once your application has been approved, leaving you free to pursue total value for your case without any worries that you may drain your bank account in the process.
If applying for a lawsuit advance is your next step, Baker Street Funding may be worth considering. We can help you cope with your finances during the pendency of your case, especially when you don’t have the means to pay the advance off anytime soon.
Having low income or no income doesn’t have to be a huge headache with pre-settlement legal funding. All you need to do is fill out your application to get started today. Baker Street Funding’s rates range from 2.95% to 3.4% non-compounding per month, capped in the third year of your loan.
