Why Is Pre-Settlement Legal Funding Better than a Lawsuit Loan

Why Is Pre-Settlement Legal Funding Better than a Lawsuit Loan?

At Tribeca Lawsuit Loans, we provide pre-settlement legal funding that has different parameters than traditional lending. Instead of a straightforward loan, pre-settlement legal funding is a cash advance on the settlement that comes at the end of a personal injury claim. In a sense, it is like borrowing from your future self. It is also a form of non-recourse debt, which protects the borrower from unnecessary risk. When you get pre-settlement legal funding, you don’t have to worry about keeping up with monthly payments to cover your debt, since the repayment comes directly from your eventual settlement.

Tribeca Lawsuit Loans has provided clients with more than $45 million in pre-settlement legal funding to date. We pride ourselves in helping injured and grieving people get the money they need now to extend their settlement negotiations and get the recovery package they truly deserve. If you are in the midst of a lawsuit for personal injury or wrongful death, get in touch with Tribeca Lawsuit Loans today.

Call (866) 388-2288 for any questions or concerns about the pre-settlement legal funding process. You can also apply for your funding online by clicking Apply Now.

Explaining Non-Recourse Debt

One of the primary ways that pre-settlement legal funding is better than a simple lawsuit loan is that it is non-recourse debt, whereas loans are typically recourse in nature. The difference may seem small, but it can have staggering effects on your life. To see the difference, we will imagine the process of recovering each kind of debt.

An Example of Recourse Debt

If you have recourse debt, the lender is able to pursue the full value of what is owed even after taking the collateral associated with a loan. For example, let’s imagine that you take out a recourse bank loan to buy a house.

  1. The house serves as collateral for the loan.
  2. Eventually, you default on the loan and the bank takes the house.
  3. Unfortunately, the value of the house does not cover the full value of what you owe on your loan.
  4. Since the debt is recourse in nature, the bank can continue to pursue repayment by garnishing your wages or taking other drastic actions.

An Example of Non-Recourse Debt

With non-recourse debt, the lender is much more limited in the ways it can pursue repayment. The most the lender can take is the collateral associated with the loan in this situation. This is the same scenario as above, only with the vital difference that your bank loan is now non-recourse.

  1. The house serves as collateral for the loan.
  2. Eventually, you default and the bank takes the house.
  3. That is the end of the matter since even though the house doesn’t fully cover your debt, the bank cannot continue to pursue payment through wage garnishment, etc.

Tribeca Lawsuit Loans’ pre-settlement legal funding is non-recourse. The “collateral” associated with our funding is your eventual settlement amount. In other words, you won’t be on the hook for:

  • Monthly payments
  • Repayment from your personal accounts
  • Credit score hits

In fact, our company takes on all the risk in this situation. If you lose your claim and wind up without a settlement, you don’t have to pay us back!

Cases We Fund

Qualifying for assistance from Tribeca Lawsuit Loans is simple. We have a case acceptance rate of 94%, so chances are good that your claim will qualify for pre-settlement legal funding. Still, there are some requirements that we must enforce in order to protect ourselves from outsized risk. To qualify for pre-settlement legal funding, you’ll need to have the right kind of case, be represented by an attorney or law firm, and be in the midst of a lawsuit settlement negotiation phase.

Case Types

Tribeca Lawsuit Loans provides pre-settlement legal funding for most personal injury and associated claims. These span the gamut of legal matters, and chances are good that even case types that are not listed here will be eligible. If you have any doubts, make sure to apply or call anyway, because we still might be able to provide funding.

Cases we have funded in the past include:

  • Slip and fall accidents
  • Car collisions
  • Premises liability claims
  • Whistleblower lawsuits
  • Wage disputes
  • Defective drugs
  • Medical malpractice
  • Commercial litigation
  • Employment law disputes

The Attorney Requirement

We work directly with your attorney or law firm to set up the repayment process. Additionally, data collected by the Insurance Research Council shows that personal injury claimants who are represented by an attorney tend to earn as much as 3.5 times more in settlements and compensation than claimants who do not hire a lawyer. Not only does this lower the risk for us, but it sets you up to earn more in your settlement, even after attorneys’ fees are taken into account.

Negotiations

Finally, you must be in the middle of a lawsuit in order to get pre-settlement legal funding. That means you and your attorney are actively negotiating a settlement with the opposing party. Pre-settlement legal funding is designed to help you pay for necessary expenses during this phase so that you can hold out for a better result instead of becoming desperate as the opposing side stalls.

Get Pre-Settlement Legal Funding ASAP

If you meet the qualification requirements, it’s time to get your pre-settlement legal funding and ease the financial burden on you and your family. Tribeca Lawsuit Loans can provide you with anywhere from $500 to $1,000,000 within as little as 24 hours from approval! Use that money however you need, including:

  • Paying off medical debt
  • Meeting rent and mortgage bills
  • Purchasing necessary medical equipment
  • Buying daily needs like gas and food

To get the pre-settlement legal funding process started, simply fill out the form on our Apply Now page. If you’d prefer to talk to a representative about the process, we’re available to take your call at (866) 388-2288.

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