Pre-Settlement Funding For Car Accident Victims
Auto accidents are one of the biggest reasons that people file personal injury lawsuits in the United States. With millions of people on the road on any given day, some drivers are careless or reckless. Inclement weather and hazardous road conditions can also play a part in serious car accidents. An auto accident lawsuit covers personal injuries or property damage in which the defendant was in their vehicle. This could involve any accident ranging from a fender bender to hitting a pedestrian. Car accidents can be physically and emotionally devastating. Injuries sustained in car accidents can lead to financial stress and disaster. Catastrophic accidents can often result in people sustaining critical and/or permanent injuries.
If you or a loved one has been severely injured in an auto accident, you may lack the proper health insurance or financial resources to pay for your medical bills and expenses while you are in recovery. Often those who suffer serious bodily injury are often unable to return to work leading to huge medical bills and/or loss of income. You may be unable to turn to banks or credit unions for monetary help or assistance. When this situation occurs, you need to consider pre-settlement funding.
Pre-settlement funding was created to address the issues of victims who need financial assistance after their car accident. If you are injured in a serious automobile accident where you were not at fault, you are entitled to a fair settlement and compensation.
A car accident case could take months or years before you see any type of compensation. If you are out of work due to your injury, you may not have a steady income. It might be hard for you to keep up with your rent or mortgage, utilities, credit card payments, student loan debts or even have money for groceries. Pre-settlement funding can help you from going into more debt by providing an advance on the funds that you expect to receive. You are selling part of the future proceeds of your settlement to have the funds to pay your expenses today. Pre-settlement funding offers immediate relief from bills and added stress of worrying about money.
Frequently Asked Questions
Who is eligible to get auto accident pre-settlement funding?
Any person(s) who are determined to be not at-fault drivers, passengers in the vehicle at the time of the accident, pedestrians who are struck by a vehicle, and family members with legal claims such as a wrongful death lawsuit.
How soon will I get my money?
Most funding companies will get you your money within a few days. You can get a quote in as little as 48 hours. Every case is different, but once your lawyer and the underwriters from the company review your case, in could take anywhere from 1-3 business days to get the funds.
How much compensation can I expect to receive?
Depending on the estimated value of your settlement, you may receive as little as $500 or as much as $800,000. It depends on the size of your auto accident lawsuit and anything else that may be unique in your case.
How much does it cost to apply?
It doesn’t cost anything to apply. You do not pay anything until your attorney settles your claim and the company that offered an advance collects their portion of the settlement received that they initially purchased.
What other costs are associated my case?
The advance the cost for court filings, research, experts, discovery and the general overhead associated with the preparation of the case is taken out of your settlement. Your attorney and the company do not receive your payment until the case is settled.
Can I get pre-settlement funding if I don’t have a lawyer?
No. The companies providing the pre-settlement funding need to speak with your attorney about your case before purchasing a portion of your expected settlement.
What information does my attorney need from me?
Your attorney will need a completed pre-settlement funding application, a copy of the police report regarding the accident, medical reports or other documentation related to your auto accident case.
What if I need more money later?
In some cases, you may be able to get more than one advance on your settlement. You may be able to sell a maximum of between 15-20% of what the funding company that offers an advance will estimate as the final settlement after any attorney fees are paid up and settled. If your initial pre-settlement advance was insufficient, you may be able to receive another advance if your case qualifies.
Other Advantages of Pre-Settlement Funding
Pre-settlement funding is not a loan. The company will only receive money if the settlement is successful. Unlike applying for a loan through a bank or credit union, pre-settlement funding companies do not perform credit checks, verify income or employment status, charge fees, or require monthly payments.
A pre-settlement company provides funding to car accident victims based upon the assessment of a case. While banks and credit unions provide personal loans based upon a borrower’s personal ability to repay the loan, funding companies do not have this obligation. When you borrow money from a bank or credit union, you are required to repay the funds borrowed no matter what financial situation you are in.
However, when you receive money from a funding company, they borrow against the settlement. So, if you lose the personal injury case and you do not get a settlement, you are not obligated to pay the funds back. It’s only an advance on the future settlement proceeds that you expect to receive. This is known as non-recourse funding.