Pre-settlement funding is becoming increasingly popular with plaintiffs who need financial assistance during their lawsuits. The experience of being involved in a personal injury case can be stressful and overwhelming. And when you add financial pressures to the mix and do not have enough cash to cover some of the most basic essentials and emergency bills, the situation can become unbearable. That’s when the need for pre-settlement legal funding may arise.
This is especially true since, according to the 2020 Federal Reserve Survey of Consumer Finances, the median family had less than $5,300 in their savings and checking combined. And as of 2023, 56% of Americans can’t even cover a $1,000 emergency expense. Imagine what this does to lawsuit victims.
The good news is that pre-settlement legal funding is a financial option available for those involved in lawsuits allowing them to receive an advance based on their pending settlement value at a time when they need it the most. These advances are designed for cash-strapped victims who have been involved in car accidents, medical malpractices, wrongful imprisonments, wrongful deaths, and other types of lawsuits and are specifically helpful during an uncertain economy.
Unlike traditional loans, pre-settlement funding doesn’t require a credit check or income verification, and there are no monthly payments to worry about. If the case is unsuccessful, you don’t have to pay back the loan. This provides a sense of relief for plaintiffs concerned with managing their finances during a long and stressful lawsuit.
Here we will cover:
- Dealing with the ongoing financial crisis caused by injuries from a car accident
- Financial Instability Caused by Medical Negligence Lawsuits
- Financial effects caused by slip and fall injuries
- Financial troubles caused by wrongful death
- Managing financial losses following a wrongful imprisonment
- Pre-settlement funding: a valuable resource for plaintiffs
Dealing with the Ongoing Financial Crisis Caused by Injuries from a Car Accident
The most common reason that plaintiffs seek pre-settlement funding for their case is because of injuries sustained in a car accident. Car accidents are a usual cause of personal injury claims. According to the Traffic Safety Facts, there were 5,250,837 police-reported traffic crashes in the US in 2020, with one-third of them resulting in injuries and 38,824 killed. Injuries from a car accident can cause catastrophic damage to a person’s physical and mental health. When a person is severely injured, it is impossible to manage medical bills and daily costs while dealing with a lawsuit. And waiting on a lawsuit settlement to be resolved can take months or even years to conclude. This financial burden can be just as devastating, especially if the injured person is unable to work.
Pre-settlement legal funding provides accident victims with the financial assistance they need to cover bills and household expenses when other types of financing are no longer an option. Car accident settlement funding is an excellent choice for plaintiffs struggling to make ends meet as a result of injuries caused by an at-fault driver.
Financial Instability Caused by Medical Negligence Lawsuits
Medical malpractice can be a life-changing event. Medical experts and modern technology have become a revolution in modern history, and they should be safely relied upon. Unfortunately, this is not always the case, and according to a study by John Hopkins Medicine, more than 250,000 people die each year from medical malpractice.
Suing a medical provider that has caused physical harm requires money. Similarly, victims often need to go through the expensive process of filing a lawsuit, giving a deposition, hiring experts, and sometimes even going to trial before they will finally be able to receive the proceeds from the case. Furthermore, litigation in medical malpractice lawsuits can take a long time, and plaintiffs may not have the financial resources to handle living expenses while trying to recover with additional surgeries.
Legal funding for medical malpractice helps victims in need to streamline their finances during the pendency of the lawsuit when they’ve been affected by the neglect of a medical professional.
Financial Effects Caused by the Injuries of a Slip and Fall
Slip and fall injuries are common and can happen to anyone, anytime, anywhere. These types of injuries can cause physical, emotional, and financial damage. Personal injury victims, particularly slip and fall injury victims, typically struggle to pay for their basic essential needs. In slip and fall accidents, back, hip, neck, and ankle fractures are relatively common. For instance, a broken bone injury will make it hard to make a living as they did before the incident.
When people get injured from falling and file a slip-and-fall suit against the premises where they got injured, attorneys tend to take these cases when they are great, especially when the insurance is commercial. However, having a good case doesn’t necessarily guarantee a quick and easy settlement. The process of litigation can be lengthy and expensive, and plaintiffs may face financial challenges that could affect their ability to continue with the case.
Pre-settlement legal funding is crucial for plaintiffs who are already facing financial havoc due to the slip and fall that led to their lawsuit. Slip and fall funding provides financial sustainability and can also help ensure that the victims are not forced to accept a lowball settlement offer just to cover their expenses.
Financial Troubles Caused by a Wrongful Death
Wrongful death cases can also leave families who have lost a loved one with a substantial financial problem. These types of cases arise when someone is killed due to the negligence or intentional act of another person or entity. Surviving family members may be entitled to compensation for lost income, medical expenses, funeral costs, and emotional distress. However, pursuing a wrongful death claim can be a lengthy and expensive process, often leaving families struggling to pay bills and make a living while waiting for a settlement or verdict months or years down the road.
Lawsuit funding for wrongful death claims can provide a helping hand when families have no other place to ask for help to cover emergency expenses since settling a wrongful death lawsuit can also take years.
Managing Financial Losses Following a Wrongful Imprisonment
Wrongful imprisonment is a tragedy that can happen to anyone at any time and is often catastrophic to the victim’s life, causing depression, anxiety, PTSD, and other disorders. According to the National Registry of Exonerations, there were 153 exonerations in 2019 alone. While being exonerated can bring a sense of justice and closure, it doesn’t erase the years that were taken away from an innocent person’s life. In addition to the emotional toll, wrongful imprisonment can also have severe financial consequences.
When a person is wrongfully imprisoned, they can lose their job, their home, and their savings. Even worse, they may be unable to find employment once they are released due to the stigma associated with being an ex-convict. According to a report from the National Institute of Justice, the average person who is wrongfully imprisoned loses $500,000 in lost wages and benefits. This figure doesn’t even take into account the cost of legal fees, court costs, and other expenses associated with trying to prove one’s innocence.
For many wrongfully imprisoned people, financial ruin can be incredibly difficult and daunting to bear. They may be forced to rely on government assistance or turn to family and friends for help. In some cases, they may even be forced to work long hours and be paid much less. This can create a vicious cycle of poverty and despair that can be hard to break out of.
Given the financial and emotional toll of wrongful imprisonment, it’s extremely important that people who have been wrongfully convicted have access to legal funding. Pre-settlement funding can help provide the financial support needed to start rebuilding one’s life. While it can’t undo the harm that has been done, it can provide a sense of justice and closure that can be invaluable for those who have been wronged.
Pre-Settlement Funding is A Valuable Resource for Plaintiffs
There are many reasons why plaintiffs may need legal funding. For one, lawsuits can take a long time to settle, and many claimants may not have the financial security to continue with their suits. Additionally, the injuries sustained in an accident can lead to medical bills and lost wages, which can put a significant strain on the finances.
Pre-settlement legal funding is absolutely necessary since it helps people overcome financial difficulties by providing them with enough money to cover their expenses. Furthermore, legal funding is non-recourse, meaning that you only have to repay the funds if you win the case. If the case is lost, you are not required to repay the funds at all. This makes pre-settlement legal funding a low-risk option for plaintiffs like you, who may be hesitant or cannot take out a traditional loan.
In addition to providing financial assistance, settlement funding can also help level the playing field between plaintiffs and defendants, increasing the chances of success in the case. Defendants are often large corporations (insurance companies) with deep pockets and a team of experienced lawyers. Plaintiffs, on the other hand, may not have the same steadiness and may be at a disadvantage when it comes to litigation. Lawsuit funding is needed because it helps you move forward with your case and pursue the compensation you deserve.
The Takeaway
Oftentimes, those who are involved in legal proceedings face difficulty in finding other sources of funds due to the length of time it may take for their case to settle. In contrast, with pre-settlement legal funding, you get a risk-free opportunity during the process of your pending lawsuit. It allows you to cover expenses such as living costs, mortgage payments, car loan payments, and medical debt until your case reaches a fair resolution.
Non-recourse financing means that you will never be held responsible for paying back the borrowed funds, regardless of a negative outcome of your case. If you fail to win a settlement or award, you are not liable for any repayment. This makes pre-settlement funding an ideal option for victims facing financial strain while fighting a legal battle.
Need to take care of your finances while fighting for the best settlement for your case? Look to Baker Street Funding’s lawsuit advances. You will get your funds within 24 hours from approval with non-compounding low rates on lawsuit loans and caps. Apply today.
