Pre-settlement funding helps plaintiffs in personal injury lawsuits cover important expenses like medical bills, rent, and utilities. It provides financial stability and lets you focus on getting better. Without it, you might face money problems, delayed medical care, and pressure to accept a smaller settlement.
Accidents and injuries are more common than you might think. According to the National Center for Health Statistics, In 2021, 62 million people, or 1 in 5 persons, received medical treatment for an injury. Unfortunately, accident injuries can have serious and long-lasting consequences for victims, both emotionally and financially.
If you’re facing mounting medical bills and living expenses that are looming overhead, it might be a good idea to look into pre-settlement funding. When the unthinkable happens, this tool becomes an indispensable resource of financial assistance for many needs.
The Purpose of Pre-Settlement Funding and How it Works
Pre-settlement funding is a form of non-recourse funding. That means the lender’s repayment is contingent on your compensation. The loan is tied to the strength, value, and risks of your lawsuit, not your personal assets or income. Your repayment obligation happens only if you win your case.
Unlike traditional loans, the legal funding process isn’t time-consuming. It doesn’t require a credit history check or extensive documentation of your assets, income, or credit card debts.
All the lawsuit funding provider needs is the main details about your case and a discussion with your personal injury attorney. Informing your lawyer about your needs can streamline the process so that you get the help you need quickly. Once your application is reviewed and meets the lender’s criteria, approval is quick.
7 Reasons Why Pre-Settlement Legal Funding is Important
1. Financial Stability for Injured Victims
A critical factor in maintaining your standard of living during personal injury recovery is having enough money to get by. Unfortunately, lawsuits can take a long time to reach a settlement or verdict. During this period, plaintiffs may face sudden loss of income, coupled with mounting medical bills, rent, utilities, and living expenses.
Pre-settlement funding can help bridge the financial gap between the accident and the final settlement. Without it, financial instability could lead to evictions or utility shutoffs, making your overall hardship even harder.
2. Preserves Your Mental Health and Quality of Life
If you are reading this, chances are you might have been stuck in a money crunch due to pending litigation. Those sleepless nights worrying about unpaid bills can seriously mess with your head, leading to anxiety, depression, and even slowing down your recovery. That’s why having the financial backup of pre-settlement legal funding is integral to nurturing your mental well-being during the personal injury lawsuit process. When your finances are in order, your mind is at ease, which is also key to a quicker and complete recovery.
3. Promotes Justice by Leveling the Playing Field
Going up against big insurance companies can feel like David versus Goliath. They have deep pockets and can afford to drag out legal battles, hoping you’ll settle for less out of financial desperation. If you’re looking to level the playing field, securing funds through legal funding is one way to mitigate this risk.
By having the financial support to sustain you through lengthy legal processes, you’re in a better position to negotiate from a position of strength. That means that you’re more likely to secure a settlement that truly reflects the value of your case, rather than succumbing to pressure tactics.
4. Helps in Maintaining Employment
When you’re juggling personal injury recovery and work, it can feel incredibly exhausting. The last thing you need is financial pressure threatening your employment. That’s why securing financial stability during this time is so important.
With the support of legal funding, you can maintain your income, facilitate your long-term recovery, and keep your life on track. Imagine how much more difficult your recovery would be if you also had to worry about losing your job.
5. Supports Comprehensive Medical Care
Injuries often require ongoing medical treatment and rehabilitation, but these can be prohibitively expensive. Unless you have the necessary funds, you might face delays in getting the care you need, potentially worsening your condition. Access to pre-settlement legal funding allows you to undergo these medically necessary treatments. Timely medical intervention is not only central to your full recovery but also boosts your case value.
6. Prevents Financial Exploitation
In times of financial distress, turning to payday loans, title loans, or loan sharks might seem like a quick fix. But when you look closer, you’ll find they come with sky-high interest rates and hidden fees that can trap you in debt. Even credit cards and personal loans can spiral out of control if you can’t keep up with the payments. Why risk your future with predatory loans when a better solution is available? Pre-settlement legal funding from a reputable lender is the smarter, safer choice to avoid these pitfalls and protect yourself from long-term debt.
7. Saves Lives and Provides Essential Support
Have you considered how you’d handle a sudden life-threatening emergency without sufficient funds? Pre-settlement funding goes beyond covering bills and medical expenses; it has, in many cases, saved lives.
In some instances, plaintiffs have used these funds to afford life-saving medical interventions for their mothers, children, or even beloved pets in need of urgent care. This funding can mean the difference between successful treatment and tragic outcomes. It provides a lifeline that helps you take care of those you love in the most critical moments. This conclusive evidence underscores its irreplaceable value in times of crisis.
Risks, Considerations, Legal Implications and Why You Should Care
Understanding the Costs and Terms
While pre-settlement legal funding gives you the financial cushion to handle your emergencies, it’s important to be aware of the rates and terms. These funds often come with higher costs compared to traditional loans. You’ll want to carefully review the terms of the agreement and be mindful of any and all costs. You don’t want to end up losing a huge part of your settlement to a predatory lawsuit lender.
Choosing a Reputable Company
Not all pre-settlement legal funding providers operate with the same level of integrity, so do your homework. Look up potential lenders, and read customer reviews. You want a company that’s transparent about their terms and genuinely has your best interests at heart. For instance, if a company can’t match the pricing of the funding agreement, a trustworthy provider won’t pressure you into a deal.
Compliance with State Regulations
Lawsuit loan companies need to follow state regulations designed to protect consumers like you. These laws might include limits on interest rates, required disclosures, and proper licensing. Verifying that your chosen company complies with these regulations is critical to protecting your legal and financial interests.
Role of Attorneys
Attorneys are Integral to the pre-settlement loan process. They must approve the funding agreement and handle all legal aspects properly with the lender. Often, they also negotiate these terms to best serve their client’s interests. They are the key link between you and the funding company.
When your case is resolved, it’s your lawyer who’ll repay the legal funding from the settlement proceeds. This means that without your attorney’s involvement, obtaining pre-settlement legal funding is literally impossible. If your lawyer doesn’t fully understand how important this funding is for you, it can lead to serious issues, leaving you to face the consequences alone.
The Takeaway
Pre-settlement funding can be a great way to stay financially stable during a pending lawsuit, instead of dipping into your savings, accruing debt, or settling for less. Not only does it provide peace of mind and the strength to keep fighting, but it also allows you to focus on healing.
For injured victims, this support holds the key to surviving one of the toughest times in their lives, proving that a little help can go a long way.
Interested in securing a pre-settlement advance? With Baker Street Funding, you can get approved in just one business day and receive your funds within hours of approval. We offer amounts ranging from $1,500 to $2 million. Get the financing you need quickly and easily, so you can concentrate on what matters most—recovering your life.
Remember, you deserve the peace and stability that comes with financial relief, and it’s okay to seek out the support you need. Apply for a lawsuit loan withh Baker Street Funding today.
