Personal injury lawsuits are often long and drawn out, leading to a costly process for plaintiffs. Between medical bills, living expenses, rent, and the time it takes to actually receive your settlement check, it’s often tough for the plaintiff involved to make ends meet.
Many people wonder whether they can get a piece of their settlement check early. Thankfully, there is relief as pre-settlement funding was created for this exact scenario.
Pre-settlement funding is a risk-free cash advance on your future settlement check. Being a non-recourse cash advance, you are only obligated to pay back the lawsuit loan if your case is successful. If you lose your case, you will no longer be liable to pay back your loan.
Why Is My Settlement Check Taking So Long?
There’s no set time frame for how long it will take for injured victims to receive settlement cash. Some cases may be settled within a few months, while others can drag on for years. Multiple factors can affect the timeline of your case. These include:
Reason #1: The Release Confirming the Settlement Amount
Both parties must sign a release form confirming the settlement amount. This document is an agreement between you and the other party that the case has been settled and that you will not take further legal action.
Once the release form is signed, it must be filed with the court. The court will review the settlement release and issue an order confirming the final settlement. This process can take a few weeks, but it’s often the quickest step.
Reason #2: Any Liens Need to Be Resolved
In some cases, there may be liens attached to the settlement amount. A lien is a claim that another party has on the money. For example, the hospital may put a lien on your settlement cash if you have outstanding medical expenses.
Before you can receive your settlement cash, you need to pay medical bills and resolve any other liens. This process can take some time, as it may involve negotiating with the lien holder.
Reason #3: The Insurance Company Needs to Issue the Check
In many personal injury cases, the defendant’s insurance company will issue the settlement check. The insurer must review the case and determine its liability for the damages. Once it has done so, it will give a check to the plaintiff. The insurance company may take some time to issue the check.
Reason #4: Approval of Settlement by Judge
Another factor affecting the timeline is whether the settlement needs to be approved by a judge. This requirement is often the case for larger settlements, as the court wants to ensure that you receive fair financial compensation.
The approval steps can lead to a lengthy process, as it’s the judge’s legal obligation to review the settlement agreement terms and hold a hearing. Once the judge has approved the settlement amount, they will issue an order confirming the check amount.
Understandably, all of these steps can take some time. It may be months or even years before you receive your settlement cash.
Can I Get Money From My Settlement Early?
In some cases, getting your hands on a portion of your settlement money early may be possible. This work is often done through what is known as a lawsuit loan. Such loans should be used with caution as they come with interest rates that may be higher than traditional ones.
Nevertheless, a lawsuit loan has the potential to provide you with the money you need to get through a difficult time. Moreover, you don’t need to worry about making payments on the loan, and your requirement to pay it back hinges on you winning your suit.
Individuals with a bad credit score or a limited income may have difficulty qualifying for a traditional loan. However, lawsuit loans are available regardless of your income or credit history.
If you think a lawsuit loan is right for you, speak to your law firm about the possibility of getting one. They can help you understand the pros and cons of litigation funding and will need to be contacted by your lender as part of the approval process.
How to Get Settlement Money Early
If it’s an emergency and you need money before settling your case, you or your personal injury lawyer may approach a reputable funding company such as Stonewood Funding to get the required cash in the form of a cash advance on your settlement.
More often than not, the lender will have to underwrite your case before they can approve the loan. This work involves looking at the facts of your personal injury case and assessing your likelihood of winning your suit. The funder will provide you with the needed funding if it determines that you have a strong case.
If you’re in a dire situation, a lawsuit loan can help you get back on your feet. When you start the application process early on a business day, you can usually have funding in hand the same afternoon.
What Is a Pre-Settlement Advance?
Lawsuit funding is a type of funding given to plaintiffs in exchange for a portion of their future settlement. The lender will provide victims with a portion of their settlement money early, which can be used to cover medical bills, living expenses, rent, or other costs. In exchange, the lender receives payment of principal and interest from the settlement.
Pre-settlement funding can be a helpful way to get your hands on some much-needed cash. However, you must take time and identify the best lender for your needs. Not all lenders are created equal, and you want to ensure you get the best possible deal.
To that end, here are a few things to look for when you’re shopping around for a pre-settlement funding company:
Low Interest Rates
You don’t want to be saddled with a high-interest rate when you’re already in a difficult financial situation. Ensure you understand the interest rates before you sign on the dotted line.
No Upfront Fees
Some lenders will try to charge you an upfront fee for their services. You should avoid these companies as they’re likely not legitimate.
When you find a funding firm that meets these criteria, you can be confident you’re getting the best possible deal on your lawsuit loan. And you’ll likely be able to receive some of your settlement money early.
Applying for A Settlement Loan with Stonewood Funding
Putting in a pre-settlement funding request with Stonewood Funding is quick and easy. We understand that time is of the essence when you’re waiting for your settlement cash, and we’ll do everything we can to get you the money you need as soon as possible.
To start your application, all you need to do is fill out our online application. Once we have a few basic details about your case, one of our representatives will get in touch to discuss your options. They’ll also have to talk to your lawyer to confirm the details of your application.
If you’re approved for funding, we’ll try to send you the cash within a few hours. The amount of settlement money you’re eligible for will depend on the facts of your case. We’ll work with you to ensure you get the best possible deal and have the money you need to cover your living expenses or other costs.