Pre-Settlement Funding: What Happens If I Lose My Case?
So, you’ve reached the end of an exhausting, expensive legal battle but, unfortunately, you lost your case. What happens if you had pre-settlement funding?
Did you apply for a pre-settlement funding case?
When pursuing legal recourse, pre-settlement funding is a crucial financial tool. You apply for pre-settlement funding if you need compensation for a specific circumstance. This often happens with physical injuries from an accident or conflict.
Some cases can take longer to settle, depending on your circumstance. It can be a long and expensive wait. If your case gets approved, then the legal battle was worth the wait.
However, what happens with pre-settlement funding if you lose the case?
We’ve got you covered. This article explains what happens with pre-settlement funding and lost cases. Read on to discover more:
Pre-Settlement Loan vs. Pre-Settlement Funding
Want to know the repercussions of losing your case? You first need to understand the difference between a loan and funding. A pre-settlement loan is different from pre-settlement funding.
A pre-settlement loan covers various lawsuits. It includes the following circumstances:
- personal injury
- wrongful death
- medical malpractice
- accident loans
- workplace injury
- product liability, and
- commercial and employment lawsuits
The lender will first determine if you’re eligible for a settlement loan. Unemployment and bad credit could affect your eligibility score. Other factors include insufficient income or high debt.
Many businesses require collateral before granting your loan, regardless of your case’s success.
What About Pre-Settlement Funding?
Lawsuits are often a long and grueling process. It can take between months and even years to settle a case. If you get into an accident, the party at fault may have an obligation to pay you for medical expenses.
This often comes from the offending party’s insurance companies. However, insurance companies are under no obligation to pay you immediately. Most insurance companies will find ways to deny, defend, or delay your claim.
The longer they try to push your claim, the more pressure falls on you to settle for less. This a common insurance company strategy that takes advantage of your time. Many people filing for lawsuits can’t afford to wait.
This is where pre-settlement funding comes in. If you need quick financial help, you can apply for a pre-settlement advance. When applying for an advance, you only need an attorney and a pending lawsuit.
You can apply for a cash advance after meeting both requirements. Unlike a loan, pre-settlement funding won’t require collateral. You secure your agreement with a payback of a fraction of your settlement proceeds.
Pre-settlement findings are non-recourse, meaning that they aren’t loans. You don’t have to worry about interest or other financial factors.
What’s the Application Process?
We at Law Settlement Funding Co. offer a simple application process for those in need. To get your settlement, you must first fill out this application form. You may wait for a representative to call you regarding your case.
After approving your case, we will request documentation from your lawyer. This allows us to evaluate your case. Upon receiving the case funding documentation, we will forward it to the underwriting department.
After 48 hours, you will know how much money you received from the advance. To seal the agreement, you and your attorney must sign the provided contract. You can expect your funds within that day.
What Happens if I Win?
After winning your claim, you won’t have to worry about the repayment process. Your attorney will most often collaborate with your funder to get the money they’re owed. After a successful lawsuit, your attorney will get the jury award or settlement check.
This comes from the party at fault. Your attorney will then write a check for the agreed repayment amount. Once your attorney gets their half of the fee, you get to keep the rest.
If you have a lawyer, you may receive a higher jury award or settlement check.
What Happens if I Lose?
One of the first questions you may ask is: Do I have to pay back pre-settlement funding if I lose my case?
Traditional loans often have strict terms and high-interest rates. Whether you lose or win, you will need to pay back your debt. This can be a struggle to deal with if you already have financial problems.
This is not the case with pre-settlement funding cases. You’re not obligated to pay your funder back unless you win your case. If you lose, you have no debt to worry about.
You don’t need to pay the service charge immediately either. Your settlements will cover any monthly payments. You can wait to deliver the service charge until you receive your settlement proceeds.
If you’re struggling with your financial situation, funding is the smarter choice. You have fewer upfront financial burdens to worry about until you settle. This is crucial, especially if you need to pay in the middle of the pandemic.
What if I Get a Smaller Claim?
Some people who pre-settlement funding get a smaller claim than expected. Pre-settlement funding companies buy a portion of your settlement proceeds. As soon as your attorney resolves your claim, they will receive their payment.
The company will also get what they purchased from your expected proceeds. You will receive whatever sum remains. Sometimes, a claim’s final size is smaller than what your provider bought out.
Your provider will still receive what they purchased. If your provider can’t recover some money from the proceeds, you’re not obligated to pay it back. However, this does mean that you won’t get additional compensation from your settlement.
Now You Know What Happens With Pre-Settlement Funding and Lost Cases
Filing a lawsuit can be an expensive and daunting process. It can be harder to deal with the repercussions if you lose your case. Are you worried about your pre-settlement funding?
Since pre-settlement advances are non-recourse, you don’t have to worry about paying your provider back. You will only need to do this if you win your case. Either way, pre-settlement funding can be a vital tool if you’re struggling with finances.
Looking to get a pre-settlement advance? Wondering where you can find a reputable law firm? Contact us today at Legal Bay LLC!