Pre-Settlement Funding: A Financial Lifeline During Legal Battles

Pre-settlement funding provides plaintiffs in personal injury lawsuits with the financial support they need while awaiting case resolution.

It’s a non-recourse funding option, meaning repayment is only required if you win or settle your case, making it an attractive alternative for those facing financial hardship during litigation.

Who Benefits from Pre-Settlement Funding?

Plaintiffs facing financial distress during extended legal proceedings often turn to pre-settlement funding to cover daily living or medical expenses. For example, imagine Jane, a single mother recovering from a car accident in New York. With limited income due to her injuries, pre-settlement funding offers her the means to manage expenses without the burden of immediate repayment.

How Does Pre-Settlement Funding Work in New York?

Pre-settlement funding in New York follows a simple process:

1. Application: Submit details about your case, including relevant documents like medical records and accident reports. Your attorney will assist in verifying the case details.
2. Evaluation: The funding company reviews the strength of your case, the damages incurred, and applicable insurance coverage.
3. Approval: If approved, funding is typically provided within 24-48 hours.
4. Repayment: Repayment is made from your settlement proceeds after your case concludes.

Importance of Pre-Settlement Funding in New York

With New York’s high cost of living—30% above the national average—pre-settlement funding offers critical financial relief. Unlike loans, pre-settlement funding doesn’t require monthly payments and ensures you aren’t pressured to settle for less than your case’s value.

Types of Cases Eligible for Pre-Settlement Funding

Pre-settlement funding isn’t limited to car accidents. It applies to various personal injury cases, including:

• Premises Negligence (Slip & Fall): Injuries from unsafe conditions in public spaces.
• Construction Negligence: Accidents caused by unsafe practices on construction sites.
• Civil Rights Violations: Breaches of fair treatment due to discrimination.
• Maritime and Railroad Injuries: Covered under federal statutes like the Jones Act and FELA.
• Wrongful Death Claims: Support for families seeking justice for a loved one’s loss.

Advantages of Pre-Settlement Funding

1. Non-Recourse: No repayment is required unless your case is successful.
2. Quick Access: Funds are disbursed rapidly—often within days of approval.
3. No Credit Check: Your case's merit, not your credit score, determines eligibility.
4. Financial Relief: Enables plaintiffs to manage essential expenses like rent, medical bills, and groceries without additional debt.

Key Considerations

While pre-settlement funding provides significant benefits, it’s important to:

• Understand the funding terms, including fees and repayment amounts.
• Consult with your attorney to determine if this option aligns with your case strategy.

Conclusion

Pre-settlement funding can provide a financial safety net for those navigating the complexities of a personal injury lawsuit. Whether you’re dealing with an auto accident, a slip-and-fall case, or other negligence claims, pre-settlement funding offers plaintiffs the resources they need to focus on recovery and achieving a fair settlement. If you’re in New York and need financial assistance during your legal journey, consider pre-settlement funding as a viable option to ease your burdens,

Disclaimer

The information provided in this document is for general informational purposes only and does not constitute legal, financial, or professional advice. Pre-settlement funding terms, eligibility, and availability may vary depending on the specifics of your case and jurisdiction. Always consult with your attorney or a qualified legal professional to determine the best course of action for your situation.