Quick Answer: Pre-settlement legal funding alleviates financial stress, allowing you to hold out for a fair settlement. This funding enables your attorney to thoroughly prepare your case for the best possible outcome based on the facts, rather than your financial situation.
Pre-settlement legal funding is a financial resource available to you if you’re involved in a lawsuit, particularly a personal injury case. It provides you with funds to cover your expenses while you wait for your case to settle. It also gives you the much-needed assistance to cover medical bills, living expenses, and other costs to hold out for a reasonable settlement.
Let’s delve further into the tactics used by insurance companies to undervalue claimants, and the ways in which pre-settlement legal funding can assist in obtaining the rightful compensation you deserve.
The Practice of Insurance Companies Offering Unreasonable Settlements.
Finding yourself in the midst of a personal injury lawsuit can often lead to financial difficulties. You might be struggling to provide for your family or attempting to negotiate with your landlord or mortgage lender in order to retain your home. Trying to scrape together enough money for groceries and daily expenses can be challenging, especially when you have other bills to pay.
If you are involved in a lawsuit and find yourself in this situation, that’s exactly where the insurance company wants you to be. While laws require insurance companies to prioritize the best interests during lawsuits, their primary goal is to maximize profits by minimizing the amount they pay out on every claim. They do this in two ways:
- They seek to resolve cases fast to avoid excessive spending on defense attorney fees.
- They may offer quick, and lower settlements than what the case is worth.
That being said, if you settle for less than your case is worth, you might struggle to cover ongoing medical expenses and future treatment costs. This decision can bring major financial burdens related to your injury after the case is closed. Here’s where pre-settlement funding can make a huge difference by providing you with the financial support you need now and negotiate a settlement that reflects the true value of your claim.
Understanding Pre-Settlement Legal Funding
Pre-settlement legal funding, also known as lawsuit funding, is a cash advance you can receive based on the expected settlement amount of your ongoing legal case. The best part? It’s non-recourse, meaning you only repay if you win your case. This feature removes the risk of debt if your personal injury case doesn’t succeed, and enables you to pursue your case without financial fear.
How it Works
The way it works is simple. You’ll need to apply through a lawsuit funding company, like Baker Street Funding. Eligibility requires you to be represented by an attorney who’s actively involved in your lawsuit. You must also have a strong case with a high likelihood of a favorable settlement. This merit-based financing also means you can pursue justice, free from the restrictions of your financial background.
The funding process takes 24 hours and involves reviewing your case file with your attorney. If approved, you’ll receive a cash advance that you can use for various expenses. Your attorney repays the advance from your settlement amount once your case concludes successfully.
Recommended: Benefits of Personal Injury Lawsuit Loans
How Pre-settlement Legal Funding Helps Maximize Your Lawsuit Settlement
1. Flexible Use of Funds
The funds you receive can be used for various needs, from paying off debts to covering everyday expenses. This flexibility lets you handle whatever financial challenges come your way when pursuing a personal injury lawsuit settlement.
2. Quick Financial Backing
Waiting for a lawsuit to settle can be financially draining. Pre-settlement funding provides quick cash to help you cover urgent expenses like medical bills, rent, and daily living costs. This quick relief prevents financial strain from affecting your decisions during the legal process.
3. Stronger Negotiation Position
In settlement negotiations, leverage is everything. When you’re not desperate for cash, you’re less likely to accept lowball settlement offers from the insurance company out of necessity. This patience also gives your attorney the leverage to negotiate more aggressively, and fight for a fair and higher settlement.
4. Enhancing Medical Care
Pre-settlement funding also allows you to afford top-tier medical treatments and specialists, which can improve your recovery. Better medical documentation and a quicker recovery process can strengthen your case and potentially increase the settlement amount.
5. Enables Attorneys Comprehensive Evidence Collection
If your lawyer gets lawsuit funding for case costs, he or she can hire private investigators, expert witnesses, or forensic specialists. These professionals can uncover key evidence, provide compelling testimony, and offer detailed reports that can greatly strengthen your case.
6. Demonstrating Seriousness
Having legal funding demonstrates to the opposing party that you’re serious about your case and willing to see it through to the end. This can sometimes pressure them into offering a larger settlement to avoid a prolonged legal battle. It outlasts the insurer from squeezing you and forcing you to accept less money for your settlement than it is worth.
7. Boosting Litigation Readiness
If your case goes to trial, having the funds to cover extensive legal preparations, such as mock trials or jury consultants, can give you an edge. These preparations can lead to a stronger presentation in court, which increases the chances of a successful verdict or settlement.
The Takeaway
Pre-settlement legal funding gives you the financial boost you need to cover expenses, avoid lowball offers, and get the best medical and legal help. This support can make a huge difference in enhancing your negotiation position and ultimately maximizing your lawsuit settlement against the insurance company.
Remember, you only have one shot at a personal injury lawsuit. Regardless of whether your case settles or goes to trial and you either win or lose, you can’t file a suit a second time based on this particular incident.
To increase your chances of obtaining the strongest compensation possible, consider pre-settlement funding from Baker Street Funding as a strategic tool to help you pursue the settlement you deserve.
With low-interest pre-settlement loans and competitive terms, we provide protection to all borrowers, which gives you the opportunity to stop your interest rate in the third year of the loan. Ready to apply for pre-settlement funding? Get pre-qualified for an evaluation today.
