The Benefits of Litigation Funding
When you’re involved in a personal injury lawsuit, it can take considerable time for you to reach a settlement. Whether you’re dealing with an individual, a corporation, or an insurance company, the legal process can be slow to unfold. While you wait for your case to settle, you may be feeling increased financial pressure. Luckily there are options available to help mitigate these circumstances.
Litigation funding, also known as legal funding or lawsuit funding, is a financial agreement where you can secure a cash advance while you wait for your case to settle. Often referred to as a “lawsuit loan,” pre-settlement funding is technically not a loan. It’s a cash advance on your future settlement. The main reason to secure an advance on your future settlement is to get the cash you need today to help offset strains on your finances.
If you’ve been involved in a car accident or have suffered a personal injury, you likely have unforeseen medical expenses that need to be accounted for. Seeking proper treatment for your injury is extremely important. If you are concerned that you will not be able to afford proper medical care, you need to explore options for paying your medical bills.
Make sure you take advantage of every opportunity to offset your medical costs. Share your insurance information with your medical provider and stay on top of your insurance bills. Make sure you document all the costs associated with your medical treatment. Proper documentation can help with your settlement efforts. If possible, look to delay paying medical bills or negotiate payment terms with your medical provider. If you can communicate that you have a pending legal claim, you may be able to get some relief in terms of timing for making payments.
Securing a pre-settlement cash advance can help you account for everyday expenses. While you may be able to delay medical payments, putting off your cost of living expenses is much more difficult. Paying for food, gas, utilities, rent, mortgage, or other bills is all part of your everyday life. These costs don’t take a break while you wait for your pending legal claim to settle. Proper budgeting can ensure that you have adequate funds to cover your everyday expenses, but if you need an influx of cash before your case settles, pre-settlement litigation funding can help you in the short term.
When you apply for litigation funding, you are borrowing against your future settlement. The cash advance that you secure is non-recourse, meaning that you are only obligated to pay back your advance if your pending legal claim is ultimately successful. If you lose your case, you pay nothing. While it’s important to borrow only the funds you need in the immediate term, the non-recourse nature of your pre-settlement cash advance means that you offset some of the risk while accounting for the costs you need to deal with today.
If you’d like to learn more about the benefits of pre-settlement legal funding, contact the experts at Pegasus today to find out if your case qualifies for a cash advance on your future settlement.