If you are in the middle of a pending personal injury lawsuit, you may struggle to keep afloat financially. Medical bills may be piling up, and if you’re unable to work, it may worsen matters.
You may wonder what to do if your expected settlement or court verdict isn’t yet available. After all, you need money to pay your mortgage, care for your family, and ensure you get the medical treatment you need.
Pre-settlement funding is designed for individuals awaiting the results of a pending personal injury lawsuit. Their case may be held up in court, or negotiations may be dragging along with insurance companies. Whatever the reason, the money needed isn’t available.
Pre-settlement loans allow plaintiffs access to pre-settlement funds they can use to get by while waiting on the outcome of a pending lawsuit.
Not all pre-settlement funding companies are created equally, though. As such, it should also be noted that some pre-settlement loans are safer than others.
Some companies charge a high-interest rate for their services. It’s also best to avoid companies that do not offer non-recourse loans or that tie your pre-settlement funding amount to collateral such as your home or other personal property.
So Are Pre-Settlement Loans Safe?
The short answer is it depends.
Pre-settlement loans are safe if obtained from a reputable provider. The settlement loan company should offer a non-recourse loan, which means that the borrower does not have to repay the loan if they don’t win their case.
In addition, the borrower should carefully review the interest rate for the loan. Since pre-settlement funding is considered high-risk, lawsuit funding companies typically charge higher interest rates for the money they lend when compared to traditional recourse debt options but the rate should not be predatory when compared to industry standards.
Before applying for a pre-settlement loan, carefully consider the reputation of the pre-settlement loan company. Avoid companies that are known for predatory lending practices and hidden fees. You’ll want to make sure you carefully read the terms of your loan contract before agreeing to a lawsuit loan.
At Stonewood Funding, we believe in supporting individuals injured due to someone else’s actions by offering safe lawsuit loans to individuals pursuing personal injury claims. Our pre-settlement funding loans are competitive within the lawsuit loan industry, and you can count on us to stick with you every step of the way.
What Makes Pre-Settlement Funding with Stonewood Funding Safe?
At Stonewood Funding, we work with you and your lawyer to understand the facts and circumstances of your lawsuit. After evaluating the likelihood of a settlement and approving your application, we’ll offer you a pre-settlement loan.
The amount of your loan is determined exclusively on the facts of your case. You don’t pledge any assets or collateral to obtain the loan, and your credit history and employment are not factored into our loan decision.
Our Pre-Settlement Loans Are Non-Recourse
Non-recourse means if you fail to win the case, there is no need to pay us back. You only pay us back if you win your case.
Further, once you obtain your pre-settlement loan, you’re not required to make any monthly payments. After your case settles, we’ll obtain the money we loaned you from your settlement award or court verdict.
Your attorney will handle the repayment all at once before distributing your portion of the pre-settlement loan to you.
Our Pre-Settlement Loans Are Risk-Free
If your case fails to win a settlement or court verdict, you are not responsible for paying back your lawsuit loan.
We acknowledge that not every case will be successful, even when your attorney does everything in their power to win your settlement. Thus, when you take out a cash advance on your settlement with Stonewood Funding, you don’t need to worry about paying us back with money you don’t have.
If you lose your case, we simply close your account and forego the money you obtained through our pre-settlement loan.
When Do I Have to Pay Back My Pre-Settlement Loan?
You pay back your loan when your case settles successfully or a court verdict is awarded. Your lawyer will deduct the amount owed to us from the money you receive and pay us directly. While your lawsuit is pending, there is no need to make any payment to us.
What If I Lose My Case?
We understand things happen, and not every case will result in a settlement or court verdict. When you obtain a pre-settlement cash advance, it is yours to keep. If your case fails, there is no need to pay us back. As a non-recourse source of litigation funding, we assume the risk of providing you with a loan.
Pre-Settlement Loans vs. Traditional Bank Loans
When looking for a source of cash to get by while awaiting the outcome of a lawsuit, many individuals wonder what the differences are between pre-settlement lawsuit loans and traditional loans. After all, since pre-settlement loans come with higher interest rates, isn’t a conventional loan the better option?
In most cases, the answer is no. Why? First of all, a bank loan will require you to apply for credit before obtaining your traditional loan. The application process involves checking your credit history and current employment. Individuals unable to work due to their personal injury often find it hard to qualify for a loan with a bank.
A traditional bank loan will also require you to make monthly payments on the amount that you borrow, even while you’re unable to work and recovering from a personal injury. If you lose your case, you’ll need to repay all of the borrowed money. You don’t get the option to walk away from a bank loan like you do with a lawsuit loan.
While lawsuit loans come with higher interest rates, you don’t need to worry about making monthly payments and the amount you borrow is repaid once your case settles or a court verdict is obtained. Even if your case drags on for months or years, no money is due to us until the matter is resolved.
How to Get a Safe Pre-Settlement Loan
There are three steps to applying for a safe lawsuit loan with Stonewood funding.
Step 1: Apply for Pre-Settlement Funding
The first step in the process is your application. We can’t lend you money if we don’t know who you are and some basic details about your case and the attorney representing you.
Step 2: We Review Your Application and Case Details
To obtain a pre-settlement loan, you’ll need to provide us with the details of your case. This information will be requested in the online application and we will follow up with any additional requests if necessary.
We’ll also need to obtain further information about your case directly from your attorney. To speed up the process, we suggest you contact your law firm to let them know you have applied for pre-settlement funding with Stonewood Funding.
The review process is typically the longest part of your application. Depending on your attorney’s schedule, obtaining the details we need to approve your loan can take some time. Sometimes people find that contacting their law firms can expedite the procedure.
Once we have the necessary details, we’ll begin the review process of determining whether your lawsuit meets our lending requirements. If approved, we’ll send you and your lawyer a loan contract to review and sign. The agreement outlines the terms and conditions of the loan and how much you will obtain from us.
Both you and your attorney must sign the contract before we provide you with pre-settlement lawsuit funding.
Step 3: You Receive Settlement Funding!
Once we receive your signed contract, we’ll transfer your loan directly to your bank account. Approved lawsuit loans are typically funded within 24 hours.
When you receive your legal funding, you can use the money however you see fit. Many customers use their settlement loan for medical bills, property restoration, living expenses, or other costs.
Ready to Apply for a Safe Pre-settlement Loan?
While working with pre-settlement loan companies can be a new experience, at Stonewood Funding we believe in helping people obtain the money they need to resume their everyday life while waiting on the outcome of personal injury lawsuits.