Pre-settlement legal funding allows you to access a portion of your expected settlement before your case concludes, providing immediate financial relief. By receiving funds upfront, you can cover pressing expenses like medical bills, rent, and daily living costs, reducing the pressure to accept a lower settlement due to financial strain. This type of funding acts as a cash advance against your future settlement, giving you the financial breathing room to pursue the maximum compensation you deserve. In this article, we’ll explain how pre-settlement legal funding works, what types of cases are eligible, how to qualify, and how the repayment process functions, so you can decide if it’s the right option for you.
What Is Pre-Settlement Legal Funding?
Often, the opposing side in a lawsuit will try to drag out the case for as long as possible. They do this because they want to force you to become desperate enough to settle for less than you deserve. Pre-settlement legal funding allows you to turn the tables on them and fight for your maximum settlement.
Pre-settlement legal funding from Tribeca allows you to borrow forward from your future settlement. In this way, it’s not really a “loan” but is actually a type of cash advance. There are two important points to understand about legal funding:
- You pay back the agreed-upon amount from your eventual settlement.
- You do not have to pay it back if you do not win your lawsuit.
The IRS considers legal funding a type of nonrecourse debt, meaning you aren’t liable to repay it from your personal assets. Repayment will come from whatever collateral is used to obtain the funding, which in this case is your settlement. That means pre-settlement funding carries no risk to you, and you won’t have to pay anything back if you lose your case.
What Cases Does Settlement Legal Funding Cover?
Pre and post settlement legal funding is available in a wide variety of situations. Cases involving personal injury are common examples, including:
- Auto accidents
- Product liability claims
- Defective medical devices
- Medical malpractice
- Premises liability claims
- Faulty pharmaceutical drugs
Other types of cases which commonly result in legal funding revolve around labor law, employment law, commercial litigation, FELA railroad claims, and whistleblower cases. However, if you are waiting on a settlement of any kind, it’s likely that you can obtain pre-settlement legal funding for it.
How to Qualify
It’s easier to qualify for pre-settlement legal funding than you might think. All that is taken into consideration in your application for legal funding are the following:
- You must have filed a lawsuit for a qualifying case
- You must be represented by an attorney or law firm
That’s all that matters – your credit score, personal finances, and any other factors that are considered for a typical recourse loan aren’t relevant for legal funding. That’s because your settlement case will be where all repayment of the funding comes from. Your legal funding company will evaluate the details of your case to determine how much funding they’ll offer you.
Areas Served by Tribeca Lawsuit Loans
Tribeca Lawsuit Loans is dedicated to providing safe, effective financial assistance to clients in need. We make sure to abide by industry best practices and all applicable federal compliance lending laws in the states we serve. As a national business, we serve clients in every US state EXCEPT the following:
- West Virginia
- Colorado
- North Carolina
- South Carolina
- Kentucky
- Montana
- Maryland
- North Dakota
- South Dakota
- Vermont
- Alaska
- New Hampshire
- Maine
- Indiana
- Illinois
The Legal Funding Process
A good legal funding company will have designed their application process to get money to people who need it as quickly as possible.
Step One: You Apply
The first step to obtaining legal funding is simply applying for it. You may need to provide information like:
- The nature of your lawsuit
- Your expected settlement amount
- Your financial need
- The name and contact information of your attorney or law firm
With a reputable legal funding company, application is fast and takes just a few minutes.
Step Two: Review
The underwriters at the legal funding company will receive your application and go over the details. They may need to contact your attorney to discuss specifics and get their professional perspective on the merits and expectations of your case, including how long they believe your settlement negotiations will take.
Step Three: You Get Paid
After your application has been approved, you could have your legal funding sent right to your bank account. With a quality funding company, you could have your settlement funding in as little as a day or even less.
Repaying Your Settlement Legal Funding
Most clients are particularly interested in learning about the repayment process. There is considerable worry over predatory lending practices that target plaintiffs who simply don’t know much about the legal funding industry. However, your funding is a form of non-recourse debt secured by the collateral of your future settlement, which means:
- We only pursue repayment from the settlement amount.
- You pay us back in a lump sum once you receive your settlement, rather than in monthly installments.
- If you lose your lawsuit and do not get a settlement, you do not have to pay us back!
Tribeca Lawsuit Loans takes on the risk when providing legal funding, saving you from having to worry about monthly payments, defaulting on a loan, or having wages garnished. All those are associated with predatory recourse debt instead of the safer non-recourse funding we provide.
Apply for the Money You Need Today
When you get legal funding from Tribeca Lawsuit Loans, that money becomes yours immediately. Use it for daily expenses like food and gas, a replacement for any lost income due to injury, medical bills, or whatever else you need to pay for while your settlement negotiations take place.
Within 24 hours of approval, you can have your money in your bank account. Tribeca Lawsuit Loans is capable of providing anywhere from $500 to $100,000 in financial assistance, depending on the facts of the case. To date, we have funded more than $45 million to people just like you, waiting on the compensation they are owed.
Get in touch with Tribeca Lawsuit Loans today. We have a 94% case acceptance rate, so chances are great that we can help you. Call or fill out our online form and get approval in as little as 24 hours.