New York Lawsuit Loans: Fast Pre-Settlement Funding Solutions

As the legal system evolves with new laws and court decisions, New York state regulations are continually being updated. At Baker Street Funding, we’re committed to providing our clients with the most current information. While this content offers a general understanding of New York’s legal processes, we always recommend consulting with your attorney for more detailed guidance.

Let’s take a look at the key aspects that help us determine the amount of your lawsuit loan in the state of NY. As a rule of thumb: The higher the value of your case, the more you may qualify for in terms of lawsuit funding in NY.

Caps on Damages

Since New York has no legal caps on either economic or non-economic damages in personal injury cases, you have the opportunity to fully recover compensation for all your losses, including past and future expenses, without any state-imposed limitations on award amounts. However, you can only get punitive damages if it is reasonable.

Statute of Limitations in NY

Injury claims in NY generally have a statute of limitations of 1 to 5 years from the date of the injury or wrong-doing. Lawsuit financing companies will consider how much time has elapsed since the date of the injury or loss. NY cases that are close to settling, have higher chances of getting approved for larger funding.

Here is a general overview of the statute of limitations:

• Medical malpractice CPLR 214-A: 1 year and a half from the date of the malpractice or end of treatment.
• False imprisonment CPLR 215(3): 1 year.
• Car accident CPLR 214(4): 3 years from when the accident happened.
• Slip and fall UCC 2-725(1): 1 or 5 years based on the case.
• Wrongful death EPTL 5-4. 1: 2 years from the date of loss.
• Government entity N.Y. C.P.L.R. § 217-A: 90 days to provide notice and 1 year and 90 days if no settlement agreement is reached.

Insurance Regulations and Minimum Liability Coverage

New York is a “no-fault” state for automobile accidents, meaning that, regardless of who’s at fault, injured parties turn to their own insurance policies for compensation first. In addition, New York law mandates that vehicle owners carry the following liability insurance coverage:

• A minimum coverage of $25,000 is required for personal injury to a single individual in an accident.
• In the event of a fatality, the coverage requirement increases to $50,000 for each person.
• For accidents involving multiple individuals, the minimum coverage for injuries is set at $50,000.
• If an accident results in the deaths of two or more people, the required coverage is $100,000.
• Property damage liability is set at a minimum of $10,000 per accident.

Legal lending companies highly consider the insurance policy limits of the responsible party. Higher limits suggest a larger settlement, which can increase the size of the loan you qualify for.

Comparative Negligence

New York follows the principle of “pure comparative negligence.” This means that if you are found to be partially at fault for your suffered injuries, the expected compensation will be reduced by your percentage of fault. For instance, if you are found to be 80% at fault for an accident, you can still be eligible for compensation from the other party who is only 20% responsible. However, your compensation will be reduced by 80%.

A lawsuit funding company will strictly assess the potential reduction in your potential settlement as if you are partially at fault for the incident, it could affect the settlement amount. The lesser your fault, the higher the settlement and, consequently, your funding amount.

Liens and Subrogation Rights

According to New York legislation, various entities such as health insurers, Medicaid, and child support have the authority to impose liens on personal injury settlements to recover amounts you owe them. To calculate a loan amount, legal funding companies subtract these liens from your potential recovery.

Case Precedents

Legal precedents in New York are past court decisions that set examples for checking similar lawsuits’ outcomes in the future. If your case shares similar circumstances and results, the lender is likely to use the precedent from that case as a guide when determining the appropriate amount for lawsuit loans.

In New York, lawsuit cash advances are often misunderstood. Let’s clear up some common myths and present the facts about these financial options.

Myth 1: Lawsuit cash advances are a scam.

Reality: Lawsuit loans are a legitimate financial product that while is not regulated by the state of New York, it is “legal”.

Myth 2: You have to pay back a lawsuit loan regardless of the outcome of your case.

Reality: You only have to repay a lawsuit cash advance if you win your case and receive a settlement. If you lose, you do not have to repay the funding.

Myth 3: Lawsuit loans in New York require collateral.

Reality: The biggest risk for litigation financing companies is losing their money if you lose your lawsuit. Adding collateral, like a house or car, doesn’t lower this risk. It would just make things more complicated.

Myth 4. New York lawsuit loans affect your credit score.

Reality: New York lawsuit loans do not typically affect your credit score. However, if you fail to repay the advance after winning your case and receiving a settlement, it could be reported to the credit bureaus and damage your credit score.

Myth 5: Lenders must disclose all fees, rates, and repayment schedules for lawsuit cash advances.

Reality: While the Attorney General’s Office has tried to regulate the litigation funding industry, disclosures are not legally required.

Myth 6: New York specifies guidelines for repayment schedules.

Reality: The New York Rules of Professional Conduct do not stipulate specific guidelines about repayment schedules, leaving terms to the discretion of individual lenders.

Don’t let a lack of funds and pre-settlement funding myths influence your legal and financial decisions. Experience ethical legal funding solutions with Baker Street Funding —a company that respects you and your litigation.

According to New York Department of Health, each year, nearly 8,000 New Yorkers lose their lives due to various injuries, and they are the leading cause of death for New Yorkers aged 1 to 34, remaining a major cause for all other age groups. Surprisingly, New York also witnesses over 30,002 fatalities from car accidents annually. Some of the specific causes include:

• Drinking and driving make up approximately 30 fatalities in New York each year.
• Speeding accounts for about 27% of all traffic fatalities in the state, leading to over 300 deaths annually.
• Distracted driving causes around 48,000 crashes in the state each year.
• Truck accidents that involved in injury crashes increased from 105,000 to 117,000, as reported by the NHTSA.
• Bicycle accidents lead to about 3,700 ER visits and over 600 hospitalizations in New York, resulting in over 30 deaths annually. 

If you’re in the middle of a legal claim due to a car accident, remember that you don’t have to struggle financially alone while you wait for your NY settlement. A personal injury lawsuit loan from Baker Street Funding can provide you with the financial assistance you need during this difficult time.

We typically provide lawsuit funding for injuries such as:

• Traumatic brain injury
• Broken bones
• Fire and burn injuries
• Spinal cord
• Loss of limb

Reach out to Baker Street Funding at (888) 711-3599 to get a complimentary case funding review today.

While settlement advances offer prompt access to money, you may not be prepared to obtain one at the moment. Consider these financial support alternatives:

• New York State Office of Temporary and Disability Assistance (OTDA): Provides support for individuals and families in NY.
• Supplemental Nutrition Assistance Program (SNAP): Helps eligible New Yorkers with food assistance.
• Home Energy Assistance Program (HEAP): Assists low-income New Yorkers with heating and energy costs.
• Temporary Assistance (TA): Offers temporary help for men, women, and children in need in New York.