You got in a motor vehicle accident. You weren’t at fault. You’ve decided to file a lawsuit. You are anticipating financial compensation upon final ruling of your case. Rather than wait out the endless months until your lawsuit makes it through the courts, you’ve chosen to explore pre-settlement funding.
Legal-Bay is once again reaffirming their dedication to assisting plaintiffs involved in car accidents, truck accidents, limo accidents, van accidents, Uber or Lyft accidents, or any other type of motor vehicle incident. Car and truck crashes can be devastating, and at times, these cases can be complex in nature. Legal-Bay is here to assist victims with legal case funding, as well as other services and lawsuit guidance.
If a person has suffered an injury or loss due to someone else’s negligence, they may suddenly need money to help cover a wide range of unexpected damages and expenses. If you’d like to ease the financial stress you’ve incurred since filing your lawsuit, pre-settlement funding may be the right choice for you. Think of presettlement funding as taking out a cash advance loan against your car accident.
If you’re getting mixed information regarding car accident loans, we can help to dispel a few lawsuit cash advance falsehoods for you. Below are some frequently asked questions regarding car accident loans.
What is pre-settlement funding? What do you mean by “car accident loan”?
Pre-settlement funding is essentially a loan on a pending lawsuit. It’s a risk-free cash advance for plaintiffs embroiled in active litigation who don’t want to wait for their cases to settle to get paid. Lawsuit funding companies provide lawsuit loans to help car accident victims pay bills and maybe even put a little money in their pockets earlier than originally expected.
It’s easy to get a car accident lawsuit loan. There’s no credit check, no income requirements, and no fees to apply. If you’ve already hired a lawyer, filed suit, and need money now, you can qualify for pre-settlement funding.
Plaintiffs who experience financial problems in the middle of a lawsuit often turn to pre settlement funding when they find themselves strapped for cash. Although lawsuit loans are gaining in popularity, many people are still unfamiliar with how they work.
So, when discussing case funding in regards to a motor vehicle lawsuit, maybe simply referring to it as a “car accident loan” will make things easier.
But why would I need a car accident loan?
Do you need money now? Whether to pay bills, college tuition, medical expenses, legal fees… even if you’d just like the security of having a little monetary cushion in the bank, a car accident loan might be of huge benefit to you. What’s more, your motor vehicle accident may have caused personal injury, resulting in an inability to work. With no salary coming in, it’s probably hard to imagine a way for you to stay afloat.
If you’d like to ease the stress caused by these or any other outstanding bills, taking out a loan for your settlement may be the right choice for you.
Do I need to find an attorney?
Yes. In fact, you should already have one.
Any presettlement funding company will only work with you if you are involved in active litigation. That means that you’ve already filed your lawsuit and are simply waiting for your case to make it to the courts.
Car accident loans are designed for clients who not only have an attorney, but one who will be supportive throughout the legal funding process. Plaintiffs will be unable to obtain car accident loans without a lawyer present, regardless of the amount of their projected settlement amount. This is for the protection of accident victims as well as lawsuit funding companies investing in pending cases.
Your attorney will be expected to provide the funding company with some information about your case in order to properly evaluate your claim and determine how much money you can borrow against your pending settlement. If you have a solid case and need money now, try to make your lawyer understand the urgency in the matter. Hopefully, he or she will be understanding of your financial situation and assist you in your endeavor to obtain a car accident loan.
But my case is dragging on forever! How long can I be expected to wait?
Unfortunately, our court system isn’t the fastest moving institution. But the long wait times to receive settlement monies is precisely why lawsuit settlement funding companies were created. Funding companies allow you to receive the cash you have coming to you without having to wait the months—or sometimes even years—that it can take before your case makes it to trial.
Most court cases can take a long time before they’re settled. But that doesn’t mean you have to wait for your settlement payout. Pre settlement funding exists for this very reason.
Say you are expecting a large settlement from your lawsuit. Rather than wait out the many months for a final ruling on your case, you could get a sizeable cash-in-hand payout within days.
The process of getting a car accident loan is fast and easy for plaintiffs who need money while waiting on a settlement. In fact, car accident loans in particular are typically approved within 24 hours of filling out an application with the funding company. The actual time that it will take to get you a car accident loan will depend upon the cooperation and availability of your lawyer, so, to speed up the approval process, please let your attorney know that you are planning to apply with a lawsuit settlement funding company.
Application? Funding company? This all seems rather confusing.
It doesn’t need to be. Case funding is basically a cash advance loan against your anticipated settlement amount prior to the final resolution of your lawsuit.
As far as the application, you can expect to encounter a simple, fairly straightforward document. Generally, the information you will need to fill out will be your basic contact information, the type of case you’re litigating, and the name and phone number of your attorney. There should be no application fee or credit check.
When it comes to funding companies, however, you may be presented with an abundance of options, and sure, it can seem overwhelming. But keep in mind that while there are some unscrupulous funding companies out there, there are some really helpful ones, too. Most reputable funding companies want you to get a fair deal; those are the ones you want to work with. It may seem like information overload at first, but asking the right questions—either of your lawyer or during an internet search—will help you zero in on your options.
The most important thing in picking a funding company is to ensure that they are a direct funding source, and not a broker sending your case to another funder, strapping you down with added fees. The best funding companies will be able to get you the right loan to suit your needs.
How do I go about getting a car accident loan?
The process is actually pretty easy. Here’s what you can expect:
Step 1: Speak to your lawyer. It’s important that you do your research to make sure you are fully aware of the terms and conditions of your potential funding arrangement, and your lawyer will help you to understand the ins and outs.
Step 2: Choose a funding company. Your lawyer may be able to suggest a good funding company, but you can also do some research on your own. Searching terms like “car accident loan” or “settlement loan” or “presettlement cash advance” will point you in the right direction.
Step 3: Once you’ve settled on a funding company, you’ll want to fill out an application. As previously mentioned, the application should be brief, and more importantly, free. There should absolutely not be any upfront fees.
Step 4: After your lawyer submits the necessary paperwork, the funding company will do some minor research to find out if your case has merit. If your case is strong, then you will not be denied unless you are in active bankruptcy or owe child support liens.
What if I don’t like the terms of my car accident loan?
Any payback fees, timelines, and stipulations should be lain out clearly in your contract before you sign. If you don’t like the terms of the contract, you can simply deny the funding and move on.
It is important for a consumer to speak to a reputable company that has fair rates and fees to ensure that when it comes time to settle your case, that your funding company isn’t taking the lion’s share of the settlement. The rates and fees of presettlement contracts can vary, so what matters most is that the payback terms are clearly disclosed on your contract. Just make sure that no matter where you obtain your car accident loan, that the contract stipulates it is a non-recourse loan.
Car accident loans, like all pre settlement loans, are provided to accident victims on a risk-free, non-recourse basis. What that means is that if you do not win your case, you will not be expected to pay the money back. Non-recourse offers plaintiffs a risk-free way to obtain pre settlement funding when they need cash most. Lawsuit loan companies are not concerned with a client’s credit history or financial ability to pay back the cash loan. The decision on whether to advance lawsuit money is based upon the facts and circumstances of your case, period.
If you win your case, your attorney will pay back the car accident loan out of the monies received from your payout once the case if settled. However, if you don’t settle the case or win your lawsuit, you get to keep the cash advance and pay nothing. It’s a win-win.
Why wouldn’t I just wait until after my trial to get paid?
All business vehicles must carry commercial liability insurance, which means the payouts for a motor vehicle lawsuit can be huge. However, you will be up against a large insurance company with more financial and legal resources than you have at your disposal. While they have seemingly unlimited funds and are able to drag out a lawsuit for years if need be, you are most likely not in a similar financial situation.
While your case is caught in limbo, you may have pressing financial needs. Rather than settling your accident claim for a lowball offer just to be done with it, you can take out a car accident loan today, enabling you to hold out for a larger settlement down the line. Basically, it’s possible for a cash advance against your lawsuit to pay for itself.
Isn’t this just one more thing to stress me out?
Probably the greatest advantage to acquiring car accident loan is peace of mind. Worrying over the details of your lawsuit can cause seemingly unending stress. Couple that with financial strain, and it’s enough to instill unfathomable fear as well. A presettlement loan can help to lift the burden and offer you room to breathe.
Obtaining a car accident loan can be a very expedient process. Since knowing the exact date your court case will settle is an impossibility, a loan against your car accident settlement can be a great way to get the cash you have coming to you without having to wait. While the course of action may take longer or shorter periods of time depending upon your specific situation and case, if you’re dealing with a reputable funding company, the time from application to cash-in-hand can be as little as 24 hours.
Legal-Bay is one of the best pre settlement funding companies in the industry. We’d love to speak with you and show you why. If you’d like to know more about lawsuit funding or about car accident loans, you can visit our FAQ page, and feel free to contact us for more information on how you can obtain a non-recourse cash advance against your pending car accident lawsuit.