You won your case, but the defense is dragging it out. Everyday bills are piling up while you wait for justice. Fortunately, plaintiffs don’t have to wait months or even years for a payout.
There are numerous options for securing funding before your case resolution. Have no idea how (as a plaintiff) you can access funds? Look no further.
In this blog post, we’re going to shed light on 7 ways to access vital funds before a case is resolved, helping you keep your head above water.
Let’s zoom them in…
1. Pre-Settlement Funding
If the legal marathon is wearing you down, pre-settlement funding lets you borrow against your expected compensation.
These non-recourse advances often provide cash for settlements within 24 to 48 hours, offering immediate financial relief.
Best of all, if you do not win and settle your case, you’ll owe absolutely nothing, which gives you ultimate peace of mind.
2. Personal Loans
As a plaintiff, if you have excellent credit, it’s important to know that borrowing from a local bank or credit union is a must-consider option.
However, these require strict credit and income verification. Monthly payments start immediately, which makes them difficult to secure if you are out of work due to an injury.
3. Tapping Into Retirement Accounts
Another top way is to take a loan or hardship withdrawal from your 401(k) or IRA. While it grants access to your own money, be aware that you may face steep early withdrawal penalties and taxes. Furthermore, draining your retirement should always be a last resort.
4. Credit Card Cash Advances
Wondering what if you have a low-interest credit card with a high available credit limit? In that scenario, a cash advance can cover emergency expenses.
However, it’s worth remembering that this strategy is highly expensive; cash advance APRs are notoriously high, and interest begins accruing on day one.
5. Borrowing From Family or Friends
A private loan from loved ones is a proven way to avoid the red tape of banks and the high interest rates they charge.
Unfortunately, mixing money and personal relationships can lead to tension if the lawsuit takes much longer to resolve than initially anticipated.
6. Medical Liens
If you’re struggling to pay for surgeries or physical therapy, medical providers and facilities may offer medical liens.
Not sure what it means? It’s all about treating you now with the understanding that they will be paid directly from your eventual settlement or jury award.
7. Post-Settlement Funding
If your case has officially settled but you are stuck waiting weeks or months for the insurance company to process its paperwork, USClaims can help.
This law funding firm is known for providing immediate cash advances on settled cases so you never have to wait to access your money.
Each option has its own perks, limits, payment criteria, and cons. So, do your research to find which option suits you. Then, find a reliable resource from where you can get funds for your legal needs.
FAQs
1. Who qualifies for pre-settlement funding?
Most plaintiffs with a strong pending lawsuit may qualify for pre-settlement funding. Approval is generally based on the strength of the case rather than credit score, employment status, or income.
2. Does pre-settlement funding affect my lawsuit?
No. Receiving pre-settlement funding does not change the outcome of your case or give the funding company control over legal decisions. Your attorney continues to represent your interests throughout the process.
3. Is pre-settlement funding the same as a personal loan?
No. Personal loans require credit checks, income verification, and regular monthly repayments. Pre-settlement funding is typically non-recourse, meaning repayment is only required if your case is successful.
4. Can I receive funding after my case has settled?
Yes. Post-settlement funding is available for plaintiffs who have already reached a settlement but are waiting for the insurance company or court to release the funds.