If you are involved in a pending lawsuit, you may have a lot of additional expenses that come with the case, and you might find it hard to pay for them with your current income.
This mostly happens if the incident leading to the lawsuit left you without a job or unable to work due to injuries. Many plaintiffs in that position apply for pre settlement funding instead of a bank loan.
Pre-settlement funding, also known as a lawsuit advance, is the amount of money a plaintiff gets before their case is over and awarded compensation. Different companies are offering pre-settlement funding, but they also have an interest attached like bank loans.
One of the advantages of pre-settlement funding over loans is that if your case is not approved and you do not get compensation, you owe the company nothing.
After applying, most companies will give you the funds within 24 hours, and you can use it on anything, including medical bills, school, or paying your insurance. Before applying for the funding, you have to evaluate how much money you need before the end of your case.
However, sometimes cases take more than you expect, and if you still can’t go to work or get a steady income, you can get multiple pre-settlement fundings from the company. However, like bank loans, there are several things the company looks at before you qualify to get the funding.
Requirements For Pre-Settlement Funding Approval
While many pre-settlement companies do not look at your credit or income history to qualify you for the funding, you need to meet the following requirements to reassure the company that you stand high chances of winning the case:
- You must have an attorney representing you. Most companies require that you pay the attorney on a contingency basis, meaning that you will pay them when they win or settle your case.
- You must have sustained compensable damages or physical injuries from the incident leading to the lawsuit.
- Your case must be mature and have stronger merits than the defendant’s.
Types Of Cases That Qualify
Medical malpractice claims
You qualify for pre-settlement funding when you suffer severe injuries or health complications because of the health provider’s negligence. Such cases include wrong-site surgery, birth injuries, delayed/ wrong diagnosis, faulty medical equipment like hip implants, and wrong medication.
Slip and fall claims in premises
Whether private, public, or government, property owners have a responsibility to ensure that the property is safe for anyone who lives or visits there.
If the property owner knew about a hazard or should have known about it but did not do anything to prevent it from causing harm, you have a high chance of getting compensation.
Regardless of which industry you work in, your boss is responsible for ensuring that the premises are safe for the workers. They should also ensure that they conduct regular maintenance and repairs on all equipment on the premises and that all people operating the equipment are adequately trained.
If an employee or visitor in the organization gets hurt because the employer failed to take safety precautions in any of these cases, it qualifies them to get pre-settlement funding.
All workplaces should accommodate all employees regardless of gender, religion, color, age, or physical abilities.
You should sue them for discrimination if you have proof that your employer or any other employee discriminated against you based on any of the factors. It gives you a high chance of getting compensation.
Whistleblower lawsuit or qui tam
If you expose government fraud and face retaliatory measures like lost income, you should make a case claiming for the damages.
Federal employers liability act or railroad employees claims
If you work at a railroad construction and suffer injuries, you can sue for several damages, including pain and suffering, medical bills not covered by your health insurance, and lost earning power.
Animal bites, whether from dogs or other animals, leave you with pain and wounds that could keep you off your job for some time. You are also at risk of getting infections and scarring, plus medical bills. This makes you legible for compensation, qualifying for pre-settlement funding.
If you are involved in a motor accident and incur damages and injuries, you could file a case seeking compensation if it was the other person’s fault.
One of the main critics of pre-settlement funding is that the fees and interest rates can be higher than what you would pay by taking a bank loan.