Your settlement funding options while waiting to recover damages in your personal injury case include pre-settlement funding, post-settlement funding, and more. These can help you meet everyday obligations that you’re struggling to meet while recovering from injuries and out of work. Your health insurance, meanwhile, can help you pay your medical bills.
Settlement Funding Options
Before you begin applying for a pre-settlement funding plan, it’s important to understand that these types of loans should only be a last resort. Most carry high fees and interest rates and can cut into the amount you receive in the end.
That being said, if you exhausted all your other options and are in need of funds to pay bills and buy necessities for your family, begin researching pre-settlement finance companies.
Below are three basic options you might consider as funding options.
- Pre-settlement funding: These types of loans are for personal injury claimants still in the midst of their lawsuit. If approved, the finance company will offer you an advance on your expected settlement. If you lose your case, you will not have to pay back the loan.
- Post-settlement funding: This type of funding comes in handy when your case has already finalized, but you still haven’t received your settlement check yet. The finance company can offer you an advance to help you during the gap.
- Rolling contracts: The above options are generally provided in a lump sum. However, some litigation finance companies will offer clients rolling contracts or structured payments. You might be able to secure an agreement where you receive, for instance, $2,000 per month for one year, rather than receive a $24,000 lump sum. Choosing an option such as this might reduce your overall interest charges, as well as encourage careful spending.
Need funds? Ask your Attorney for References
If you are contemplating pre-settlement funding, ask your attorney for referrals to any reputable companies with which he or she is familiar.
Also, note that litigation finance companies will carefully review your application and make an approval decision based on the likelihood of your case’s success. They will only fund cases that have high odds of winning. The company will also request to speak with your lawyer in order to obtain the necessary information about your case.
If you’ve yet to hire an attorney and you reside in Pennsylvania, call Cordisco & Saile LLC. We serve clients throughout the state and we are dedicated to helping victims get the settlements they need in a timely manner.