Posted: June 28, 2021
Our clients are often able to get cash advances against the expected settlement or judgment of their personal injury cases. Cash advances, sometimes called lawsuit loans or lawsuit funding, are available through an independent pre-settlement funding company.
Pre-settlement funding offers several potential advantages including that it:
Eases financial strain: A serious injury can steal your financial stability. You may be juggling medical bills, living expenses, car loan payments, and a reduced income. A cash advance could be what you need to keep your head above water during a lawsuit.
- Helps you hold out for a bigger settlement: Financial pressure can make you feel as if you have no choice but to take the first offer that comes your way. That offer might not be enough to cover your long-term expenses. Pre-settlement funding can give you the breathing room to pursue a fair result — even if that means going to trial.
- Doesn’t require a credit check: Pre-settlement funding companies may not run a credit check or take your credit score into account when weighing your application. They will, instead, consider the likelihood that your case will succeed and result in a large settlement.
- Gives you peace of mind: Settlement lenders accept the risk that you will lose your case. That usually means they cannot require you to repay the cash advance unless you win. If your case settles for less than the amount that you promised to repay, you may not be responsible for the difference, either. It all depends on your agreement.
For all of their advantages, lawsuit loans come with some drawbacks. These loans tend to have high interest rates. They also take a bite out of your settlement or award. Consider all of the factors when determining if a cash advance makes sense in your situation.
Discuss Your Options During a Free Consultation
If you were injured due to someone’s negligence, you may be entitled to compensation. Pre-settlement funding can help you get that compensation when you need it most.
Call 212-406-9288 to discuss your options during a free consultation with attorney Reid B. Wissner. Our personal injury law firm serves clients in The Bronx, Brooklyn, Queens, Manhattan, and New York City areas.
