Dealing with a lawsuit while paying bills
When filing a lawsuit, the intention is usually to get some compensation for your injuries while remedying other injustices. Doing so can award you the compensation you deserve. However, the entire process can be lengthy and expensive. If you can’t work for any period of time following your injuries, bills might pile up, and these might include your rent/mortgage, bills, credit cards, and new expenses such as medical bills. This may sound daunting, but luckily there are options available to help ease the financial burden you might face.
Depending on your lawsuit and the state you live in, you might be able to avail of funding in the form of ‘pre-settlement funding’ or ‘lawsuit loans’. The term ‘lawsuit loans’ might be a little misleading as they are not loans in the traditional sense. Instead, funding is based on the viability of your case and how much your settlement is expected to be.
How Pre-settlement funding can help
Getting pre-settlement funding can help with your everyday expenses as well as your bills incurred from your lawsuit. Some states require that companies offering this type of funding be licensed lenders. This means that the name of the funding will usually be a ‘lawsuit loan’ or a ‘lawsuit advance.’ On the other hand, states that don’t have regulations for companies will offer to purchase a portion of the proceeds that you expect to be awarded.
Despite some states calling pre-settlement funding a ‘lawsuit loan’, the concept differs from a traditional loan. For example, traditional lenders thoroughly assess the borrower’s financial status, which will involve a credit check. As such, a poor credit score may exclude applicants from getting a loan. In addition to this, applicants with a poor work history or who are currently unemployed may also be excluded.
How lawsuit funding works
In contrast, pre-settlement funding is a more straightforward process. As long as you are pursuing a claim and you have an attorney representing you, you can apply online or over the phone. The companies will want to know details about you, your case, and your attorney’s details. Once they evaluate your claim, how likely it is to succeed, and how much you are likely to receive, they will let you know the outcome of your funding application. As long as you don’t have any liens that will affect you receiving your funding, this should be straightforward enough, although some companies may run a credit check to confirm this. Litigation Funding, LLC is the cheapest solution for lawsuit funding in the State of Michigan.
Mainly, companies’ decisions will rest on the strength of your case. Since traditional lending requirements aren’t factored into their calculations, all the company has to go by is the information about your case. Usually, only the most substantial cases will succeed in getting funding. This may sound slightly off-putting, but if you are approved for funding, you’ll have a weight lifted off your shoulders as you won’t have to worry about bills falling past due, especially if you’re unable to work due to your injuries.
Since pre-settlement funding is approved immediately and can be received even within 24 hours, you benefit from avoiding the waiting period on credit checks and other paperwork associated with traditional loans.
Finding the Best Funding Company in Michigan
The most important thing to do before seeking pre-settlement funding is to research the companies offering quotes. As lawsuits can take some time, you can comfortably research providers to get the best quote. Make sure to look out for the interest rate and any fees that apply on a monthly, six-month, and yearly basis. If there is any part of your quote that you don’t understand, make a note of it, and get in touch with your provider, who will answer your questions. You can also seek guidance from your lawyer on the best route for you based on your case.
Next steps in funding your lawsuit
Being an injured party from an accident that wasn’t your fault is possibly one of the most stressful experiences someone can go through. Adding financial stress into the mix could be a recipe for disaster. However, once you’re aware of all the options available to you and the latest information on pre-settlement funding, you can access a safety net that will allow you to focus on more important things like getting better.
Ultimately, the decision is yours. But now that you have more information about pre-settlement funding and what it’s about, you can start to consider if it’s for you. If you need additional, quick funding while you await the outcome of your case, Litigation Funding, LLC is your best choice. Sign up today for a free consultation.