Personal injury lawsuit funding is a helpful option that a plaintiff has to mitigate some of the financial troubles arising from the aftermath of the accident. In many situations, the victim’s ability to carry on with his/her occupation is compromised and income streams tend to dry up. You have a lawsuit pending settlement and perhaps you are not aware that you can seek a loan against the projected settlement. Though from a recent origin, personal injury lawsuit pre-settlement cash advances have benefitted several thousand plaintiffs in the past couple of decades, with some $100 million dollars being disbursed every year across the U.S.A.
When should you consider personal injury lawsuit funding
Consequent to the accident when your pay checks stop coming because you are away from work and savings have dried up, your bills don’t stop coming. The situation can turn really nasty when you cannot pay even the utility bills and this is when personal injury lawsuit funding can mitigate your suffering. Remember that these may not be huge cash advances to cover all your monthly expenses but an interim relief to help you relax and examine other means of finding affordable credit or getting help from family or friends.
How much should you expect from personal injury lawsuit cash advance
About 20% of your claim amount would be a good bet when you want to quantify the loan. Most personal injury lawyers will file your case and attend the proceedings in court without an upfront fee. This gesture is aimed at reducing your immediate financial burden in the aftermath of an accident. However, your attorney is a professional entitled to earn his/her livelihood. Once the settlement is paid out, your attorney generally claims one third of the settlement as the fee. You now have the medical bills to pay for and that is capped at 33%. That leaves you with only one third of the settlement amount. The personal injury lawsuit funding company has to factor in interest charges and costs of the non-recourse cash advance and that brings the loan amount you can expect at about 20% of your projected settlement.
Making the wait easier
Although you may not receive large sums of money through personal injury lawsuit funding, the major benefit that you receive is the ability to wait until the settlement is reached and paid out. Often times, this takes 24 months or more depending on individual circumstances. The insurance carrier and the assessor meantime work relentlessly to minimize the quantum settlement and that works against your interests. With personal injury lawsuit cash advance, you have the ability to stay free from the pressure tactics employed by vested interests.
What you need to do
The process of applying for personal injury lawsuit funding is straightforward and simple. The lender will require an assessment of your lawsuit done by your attorney and this will project the settlement amount as well as time frame. Once you have submitted an application with the assessment, most companies take up to 48 hours before you can feel the cash in your hands. And remember, it is not a lawsuit loan or loans, but a non-recourse cash advance. Apply today with Pegasus Legal Funding. If you case does not settle successfully, you owe us nothing!
About the author:
Tiffany Sherrill is a paralegal at Pegasus Legal Funding, LLC. Recently Tiffany was the assistant to the General Counsel at PLF with a focus on contract and financial aspects of Litigation Funding. Tiffany is also continuing her education pursuing a Juris Doctor degree.