The answer to this question, as unsatisfying as it is, is: it depends.
While ultimately it is your right to apply for pre-settlement funding, your attorney will always have to be a part of the process.
Thus, if your attorney does not agree with your decision to seek pre-settlement funding, they may try to prevent you or steer you away from the decision to do so.
Before you think about applying for pre-settlement funding, you should understand what pre-settlement funding is and how the process works.
It’s also a good idea to consult with your attorney to see if pre-settlement funding is right for you.
What Is Pre-Settlement Funding?
Simply put, pre-settlement funding is a cash advance on your future settlement award in a civil case.
This type of funding can help you if you are struggling financially while waiting for your lawsuit to proceed.
This is often the case because injury victims may not be able to work, cover medical expenses, or pay for the legal costs involved in a personal injury suit.
In some instances, claims can take years to settle.
Further, opposing parties may try to prolong a suit as a defense strategy. So having access to needed funds can even help tip a lawsuit in your favor.
Is Pre-Settlement Funding a Type of Loan?
Even though the term “pre-settlement funding” is sometimes used interchangeably with “lawsuit loans,” pre-settlement funding is not a loan in the traditional sense.
This is because you are required to pay back your pre-settlement funding only if you win your case.
Because the purchasing company will lose their money if you lose your case, only certain types of cases qualify.
Below, this post goes into detail about how the application process works.
Do I Need My Attorney’s Consent to Get Pre-Settlement Funding?
As explained above, the answer to the question, Can I get pre-settlement funding without my attorney’s consent? can be complicated.
In every instance of pre-settlement funding, the company you will be working with will want to see that you have an attorney representing you.
This is because diligent representation will help you succeed in your claim. So an attorney will always be part of the process of getting pre-settlement funding.
Your attorney works on your behalf, and it is always important to listen to their advice. In some situations, pre-settlement funding may not be right for you.
If your attorney advises you against seeking this type of funding, there may be a good reason, but it will ultimately be your decision.
If your attorney is attempting to prevent you from seeking pre-settlement legal funding, you should have a conversation with them about why.
Most attorneys will be paid on a contingent basis, and they may not want to deal with third parties during the payout process.
At Injury Wallet, we will work to find you a company who will consult with your attorney to understand the complexities of your case, and they will talk to them about any benefits that pre-settlement legal funding would be able to provide for you.
What Is the Process Involved in Getting Pre-Settlement Funding?
Getting pre-settlement funding from a reputable legal funding company should be easy and efficient.
Below are the usual steps involved in applying for and getting pre-settlement funding.
Step 1: Hire an Attorney
Because the company you work with to receive pre-settlement funding will want to see that you are represented by an attorney, hiring an attorney is step one in the process.
If you are hiring an attorney knowing that you will be seeking pre-settlement funding, it would be best to let them know that in advance.
Your lawyer will then begin to initiate the process of filing your suit in court.
Step 2: Find a Reputable Legal Funding Company
After you have hired an attorney, you should do some research on the different legal funding companies out there.
At Injury Wallet, we will do that research for you. Not every legal funding company is the same, and they have different qualification criterias.
When looking for a company that is right for you, transparency is key. This will help you avoid any hidden or unanticipated fees and surprising interest rates.
Step 3: Apply for Pre-Settlement Funding
Once you have picked the right company for you, then it is time to apply for your pre-settlement funding. This can usually be done online.
At Injury Wallet, we will provide the company with the basic information and the details of your case, and the company will begin the evaluation process.
Step 4: Your Case Gets Reviewed
Through the review process, your legal funding company will evaluate the strengths and weaknesses of your case.
It will also evaluate how much money you are likely to get as part of your lawsuit settlement.
From these factors, the company will determine if you qualify for any pre-settlement funding and what your interest rates will be.
Step 5: Review the Proposed Funding Agreement with Your Lawyer
You and your lawyer will get copies of the documents outlining your proposed funding agreement from the legal funding company.
Because your lawyer will be the one receiving your settlement funds in their escrow account after the lawsuit, they will need to be involved and agree to the terms of the funding agreement.
When determining if the pre-settlement funding agreement is right for you, you should consider whether the interest rates will be manageable.
When it comes to pre-settlement funding, you will be paying back the interest on your funding as you wait for your lawsuit to settle.
Once the lawsuit settles, you will pay back the principal amount.
You may also consider other lending alternatives, like a personal loan or low interest rate credit card.
If you find that the pre-settlement funding option is right for you, then you can go ahead and sign your funding agreement.
Step 6: Your Funds Are Dispersed
After you agree to the terms of the funding agreement, your legal funding company will send you your money.
A reputable company should be able to get you the money quickly and efficiently.
Step 6: Repayment
If you win your case, you will be obligated to repay the legal funding company a portion of your settlement proceeds.
If you lose, you will not be obligated to pay the company back at all. Because pre-settlement funding is a form of a non-recourse financing arrangement, your assets will be protected as well.
What Happens If I Am Denied Funding?
You can be denied for one of two reasons: either your lawyer would not sign the agreement or you did not qualify for pre-settlement funding with the company you chose.
If your lawyer did not approve of the agreement, it may be because you already have too much legal funding.
Your attorney may also be opposed to working with a legal funding company, which means you may have to seek alternative representation if you want to continue with pre-settlement funding.
You should consult with your lawyer about the reason they would not sign, if that is the case.
If you were denied by the legal funding company, you did not qualify for pre-settlement funding with them.
This may be because the company does not think your chances of winning your claim are strong enough.
You can try applying with a different company, wait until your lawsuit is at a later stage, work with your attorney to improve your case, or seek an alternative funding option.
How Am I Protected When I Get Pre-Settlement Funding?
One of the great benefits of pre-settlement funding is that you do not bear the risk of losing your case. The legal funding company takes on the risks for you.
This is one of the reasons that it must evaluate the strength of your case before moving forward with your application.
In addition, pre-settlement funding is a form of non-recourse financing.
This means that the company cannot collect its money from any of your assets other than what you receive from your lawsuit.
Additionally, your credit and employment status are not part of the consideration criteria.
What Can Injury Wallet Do for You?
Injury wallet helps you compare rates and offers from different lenders. We strive to provide you with options that include the lowest cost pre-settlement funding.
At Injury Wallet, we understand that injuries can lead to tough financial times, and we are here to help you.
We find lenders that finance all types of cases, and some commonly funded cases include:
- Auto accident claims,
- Wrongful death claims,
- Workers’ compensation claims,
- Medical malpractice claims,
- Defective drugs claims,
- Defective medical device claims,
- Wrongful termination claims,
- Whistleblower cases, and
- Premises liability claims.
As we find you low-interest pre-settlement loans, we promise to operate on our strict value system. At Injury Wallet, our three value pillars are honesty, efficiency, and commitment.
We value your trust, and there will be someone to help you through every step of the process.
If you’re looking for pre-settlement funding, look no further. If you have any questions about the process, feel free to reach out to us online.
In addition, if you’re ready to begin the process, you can start by filling out the two-minute intake form on our website, which can be done 24 hours a day, 7 days a week.