Personal injury lawsuits are notorious for taking a long time to work through courts or settlement negotiations. Much of this is by design – the defense knows if they can drag this process out, they can force you to settle for less or even deny your claim altogether.
Personal injury loans, also known as pre-settlement or lawsuit loans, can help you win the maximum award. With a lawsuit loan for a personal injury claim, you can borrow against your expected settlement at no risk to your own finances. Find out if a lawsuit loan is the right financing option for you.
How Does Pre-Settlement Funding Work?
Your settlement may not arrive for months or even years from now. However, it’s possible to estimate its size based on the facts around your case. This is the principle behind legal funding for personal injury lawsuits, which allows you to borrow against this expected amount.
After a personal injury, you may have incurred steep medical bills and other damages. At the same time, you could have lost income or even future earnings, especially if your injury caused you to switch industries. Legal funding allows you to access the money from your settlement early so you can resist the financial pressure tactics defendants count on.
Legal funding, also known as a lawsuit loan, can provide you with a risk-free source of cash during your lawsuit. It could be just what you need to win out against well-funded defendants.
What Types of Damages Can Be Covered By Legal Funding?
A personal injury case can take months or even years to settle. During that time, you could face mounting bills and have less money to pay them than before your accident. Pre-settlement funding for a loan on a personal injury settlement can help you cover the following expenses and help you resist the pressure to settle for less:
- Medical bills
- Rent or mortgage payments
- Groceries and utilities
- Car payments
- Child care expenses
- Educational expenses, such as student loans
- Credit card debt
There aren’t any limitations on how you can spend your personal injury lawsuit loan once you receive it. The money is yours to see however you would like. You don’t have to worry about repaying your pre-settlement funding, either. Your settlement will be the sole source of repayment for your lawsuit loan. Your personal finances will never be at risk when it comes to repaying your legal loan.
Types of Personal Injury Lawsuits That Can Get Legal Funding
Pre-settlement funding can be used for a wide array of personal injury lawsuits. Here are some of the most common types of pre-settlement legal financing that we offer:
- Car accident loans
- Workers compensation lawsuit loans
- Slip and fall accident loans
- Sexual abuse lawsuit loans
- Medical malpractice lawsuit loans
- Product liability lawsuit loans
- Construction accident lawsuit loans
After a personal injury, you could be entitled to a substantial award or settlement. However, you’ll need to afford your legal fight before you can claim any compensation. Injury settlement loans can give you an advantage in your fight and may help you outlast the defense’s pressure tactics.
If you have a pending settlement, it’s likely that you’re already pre-qualified to receive legal funding. However, that alone won’t be enough to help you obtain a pre-settlement loan. You’ll need to meet a few other basic qualifications to get approved for a lawsuit loan.
Am I Qualified for Personal Injury Pre-Settlement Legal Funding?
The primary factor impacting your eligibility for personal injury lawsuit loans is the quality of your case. If it appears clear that you were the victim of the defendant’s actions and share no responsibility for your own damages, you’ll be able to qualify for more legal funding at lower rates.
In order to get a lawsuit loan for a personal injury claim, you really only need to fulfill a handful of basic qualifications:
- You’re at least 18
- You have filed a personal injury lawsuit
- You have retained a contingency-based lawyer
Unlike other forms of financing, there are no credit checks you have to pass to obtain a personal injury loan. Your credit score, employment history, and amount of personal assets don’t impact your eligibility for an injury lawsuit loan. All that can impact whether or not you get legal funding and how much are the facts around your case and whether you’re represented by a lawyer.
Personal injury pre-settlement funding is an investment, and the company offering it to you wants to see a return. They risk a total loss of their investment if you don’t win your case, so are often selective about who they offer a lawsuit loan.
What State Laws Impact My Legal Funding Eligibility?
The most common state laws that can impact your eligibility for personal injury pre-settlement funding are statute of limitations laws. In some states, you can have as little as a year to file a lawsuit for a personal injury claim. Unfortunately, it can take a year or more to even know the full scope of damages you suffered.
You must run a balancing act and file your case before the statute of limitations expires, but only after knowing the full extent of your damages. By filing too early, you run the risk of suing for damages that are too low.
Some states are also not as friendly to third-party lawsuit funding as others and make it difficult for personal injury pre-settlement funding companies to operate. Another hurdle that can keep you from getting a personal injury lawsuit loan is a state’s fault laws. Some lawsuit loan companies are averse to working in at-fault states, as it’s possible for them to absorb a total loss if a plaintiff is found to be partly at-fault in their case.
How Much Personal Injury Legal Funding Can I Get?
In most cases, you’ll be able to get anywhere from 10-20% of the estimated value of your settlement as a lawsuit loan. The specific amount of money you receive will depend on the circumstances around your case. Specifically, we’ll take a look at who is liable for your damages, what kind of coverage is available for them, and their potential amount.
- Damages: The amount of damages you suffered will serve as an upper limit to the amount you can recover in a settlement or a lawsuit. You may face hospital bills, lost income, along with long-term physical damage. You could also face soft tissue damage along with pain and suffering, both of which can increase your potential settlement.
- Liability: When determining who is responsible for your damages, we’ll take a look at your case. If the defending party can be held fully liable, you’ll have a much stronger chance of winning your case. In some states, you may still obtain personal injury legal funding with martial liability, but in at-fault states, this usually isn’t possible.
- Coverage: The maximum amount of your potential settlement will be determined by the defending party’s amount of coverage. States often have a minimum policy limit for auto accidents, which we can use as a baseline for your lawsuit loan. Commercial policies tend to be substantially larger, which can allow you to receive more pre-settlement funding for your personal injury claim.
Once we’ve taken these factors into account, we’ll have a better idea of the amount of legal funding we’re able to offer. Should you require more, you may be able to apply for a second loan on your personal injury settlement.
How Much Do Personal Injury Loans Cost?
The price of your legal funding will depend on the circumstances around your case. There is no one set price that you can expect to pay for legal funding. Each settlement is different and varies in both risk and potential payout for you and your lender.
Unfortunately, we can’t give you an estimate of how much your legal funding will cost ahead of time. However, we can say that you can expect to pay a low, simple interest rate for loans against personal injury claims with a reputable legal funding company. Be sure to avoid high, compound interest rates, which can add significant costs during longer cases.
Personal injury loan companies can provide you with a specific estimate for the cost of your pre-settlement funding once you apply for a lawsuit loan.
How Risky Is Legal Funding for Personal Injury Claims?
Legal funding has several advantages over other sources of funding you might turn to, such as a personal loan, second mortgage, or credit cards. For one, a lawsuit loan is considered a nonrecourse loan by the IRS. This means that you don’t have to repay it if you lose your case, and you won’t ever owe more than your settlement is worth.
Since lawsuit loans are nonrecourse, this makes them significantly less risky than other forms of debt you might take on to finance your case. In fact, lawsuit loans carry no risk at all for borrowers.
The only collateral at stake with injury lawsuit loans is your settlement itself. Any repayment of your lawsuit loan will come from your settlement, leaving your personal assets untouched.
Get a Personal Injury Lawsuit Loan Today
Tribeca Lawsuit Loans offers pre-settlement legal funding for personal injury cases. We can offer you up to $1 million in personal injury lawsuit loans should you meet our qualifications. Our application process is simple and easy to complete, and you could be approved within minutes.
We can send money to your bank account within 24 hours of the approval of your application for injury lawsuit funding. We’ve disbursed over $45 million to our clients across the United States and have the financial power to help you win your case. Contact us today to get the resources you need to complete your fight for justice.