Stonewood Funding

Pre-Settlement Funding Cost for Personal Injury and Hit and Run Car Accidents

How Much Does Pre-Settlement Funding Cost?

A car accident means not only physical or psychological suffering for a victim but also financial problems after a personal injury or a hit-and-run accident. Pre-settlement funding allows the plaintiffs to obtain funds for their lawsuit without waiting for a funding settlement, which can be a relief at times. However, the litigants must understand not only the benefits but also the costs of this type of funding to enable them to make the right choices.

The cost of pre-settlement funding for hit-and-run accidents and personal injuries may include fluctuating costs, where the funds fixed monthly may be between 2% – 4%. It is, therefore, important that an understanding of the key provisions of a pre-settlement finance agreement is made and assessed.

Pre-settlement funding is a legal settlement funding service that offers cash advances to plaintiffs involved in most types of legal cases, including car accident loans and personal injury loans. When applying for funding with Stonewood Funding, plaintiffs are guaranteed that there are no more charges to be paid or any cash deposit that will be paid before they receive the funding.

This blog discusses pre-settlement financing eligibility requirements, the application process, expenses, case studies, the impact of fees, and advice on interacting with funding providers. It also explores real-world case studies.

Who Is Eligible for Pre-Settlement Funding?

Who Is Eligible for Pre-Settlement Funding?

As a general rule, pre-settlement funding is provided to parties with pending lawsuits that have no restrictions. As for Stonewood Funding, we provide loans exclusively for personal injury cases and car accident cases. This is for plaintiffs who are experiencing hardship through legal funding for their case, bills, missed income, and other costs ailing them.

What Is a Pre-Settlement Loan?

Pre-settlement loans, also known as legal money or pre-settlement funding, are the lowest-cost pre-settlement funding extended to plaintiffs in ongoing litigations. Some offer plaintiffs cash in advance by purchasing their lawsuit loan for a possible settlement.

Getting a pre-settlement loan does not cost money and does not require checking credit history. The size of your lawsuit loan depends solely on the specifics of your case and the documents submitted by your law firm to our lawsuit funding company.

Who and How Can You Apply for Pre-Settlement Funding?

For pre-settlement funding, get in touch with companies that offer pre-settlement cash. Please describe your case, including the type of injury, estimated compensation amount, and the attorney’s contact information.

Some employers may further require other supporting documents, such as police reports or medical reports. The financing firm will then analyze your application and determine whether to approve the funding request.

Legal funding for pre-settlement is accessible for any plaintiff with an active case. A plaintiff must have a strong case, a lawyer, and a reasonable expectation of being compensated.

How Much Does Pre-Settlement Funding Cost?

How Much Does Pre-Settlement Funding Cost?

Pre-settlement funding is one of the several subcategories of legal financing in which the plaintiff can be provided with cash before a case is taken to court in anticipation that the case will be won or settled. This ensures that plaintiffs are able to satisfy their basic needs and any other expenses that may crop up when litigating their cases in court.

Recipients normally provide a ‘factor rate,” which is a multiple of the secured sum to the funding firm. The factor rate may be less than one or more than one, 5% to 3. Ideally, it can be up to 5% or more, depending on the risk level of the case. There can also be other costs apart from administrative costs.

Repayment is a distinctive feature that distinguishes traditional loans from pre-settlement funding. Pre-settlement funding is frequently considered a non-recourse loan, which means the funding source only charges a fee if the plaintiff wins the case, whereas conventional loans need to be paid back regardless of the outcome of a particular case.

At Stonewood Funding, we are exclusively involved in legal funding for the objective of pre-settlement lawsuit funding or lawsuit loans for personal injury and car accidents. Our funding is non-recourse; hence, in the event that you lose your case, you owe us nothing. This provides our clients with a comfortable environment during the sensitive and complex process of seeking justice.

If clients win their case, they repay the funded amount plus any agreed-upon fees and interest to Stonewood Funding.

Does It Cost Anything To Apply For Pre-Settlement Legal Funding?

There are no upfront costs to apply for pre-settlement legal funding with Stonewood Funding. We believe in transparency and accessibility, which is why there are no fees associated with the application process. Additionally, no credit check is required, making it easier for plaintiffs to access the financial assistance they need during their legal proceedings.

Typical Costs Associated with Pre-Settlement Funding – Paying Back Your Loan

Typical Costs Associated with Pre-Settlement Funding - Paying Back Your Loan

Costs in pre-settlement funding are primarily calculated based on two key factors: changes in interest rates and fee structures.

Interest rates: The specific percentage of interest charged on the pre-settlement funding may differ depending on the lawsuit funding companies or the case specifics; nonetheless, it falls between 2% and 4% per month. The risk perceived from the case, the amount of money required, and the case duration are some of the factors that influence these rates.

Fee structures: Pre-settlement funding involves some fees commonly known as processing, administrative and origination fees. Before proceeding, plaintiffs need to consider this option because these costs might vary from one provider to another, and the plaintiffs can review the agreements before they proceed with any agreement.

Examples of cost scenarios

  • The whole pre-settlement financing cost for a simple personal injury case with a good chance of victory might be a specified percentage of the financed amount plus any relevant costs.
  • On the other hand, because of the greater risk that the funding provider perceives, the overall cost of funding may be higher for a more complicated case with unclear results.

Ready to secure financial support for your case? Look no further! Get approved for pre-settlement loans over $5,000 with Stonewood Funding today.

Factors Influencing the Cost of Pre-Settlement Funding

Several factors influence pre-settlement funding costs, all of which should be considered to obtain a complete picture of the associated costs.

The Strength and Clarity of the Legal Case: The funding provider’s perceived risk decreases as the strength and clarity of the legal argument increase. Lower interest rates and pre-settlement funding expenses may follow.

Estimated Duration Until Case Resolution: Quickly handled cases typically incur cheaper pre-settlement funding expenses. Increased uncertainty and a longer funding period might lead to greater costs in longer and more complicated situations.

Amount of Funding Requested: The pre-settlement funding fee may vary depending on the amount sought. Since larger funding quantities put the funding source at more financial risk, they may result in higher interest rates and costs.

Policies of the Funding Company: The policies and terms about interest rates, fees, and repayment choices may vary depending on the pre-settlement funding source. Plaintiffs must study and comprehend these regulations to determine the total cost of funding.

Variables, including possible damages, responsibility, and the extent of injuries sustained, can greatly impact pre-settlement funding costs in hit-and-run and personal injury cases. Funding sources may see cases with obvious responsibility and significant damages as less risky, which would cut expenses.

Conversely, circumstances where blame or damages are unclear might result in greater expenses since the funding source is exposed to more risk. Pre-settlement funding expenses are further impacted by the fact that personal injury and hit-and-run cases might have significantly different timelines for case resolution.

How Long Does it Take to Apply, and How Long Does it Take to Get Through Court?

Processing the pre-settlement lawsuit funding applications involves several steps, and most of the procedures may take a few days. The court processes will take a few days as well, due to the complexity of the case and other factors, which might require different configurations.

How Long Does the Payout Take?

Pre-settlement funding companies pay out in different ways, but the monies are usually distributed within a few days of approval. However, your settlement check can take up to six weeks to process.

How Can a Pre-Settlement Funding Company Help?

How Can a Pre-Settlement Funding Company Help?

Pre-settlement funding companies give money to plaintiffs in ongoing situations, including auto accidents or personal injury claims. They assist by providing plaintiffs with financial loans against possible settlements, enabling them to pay urgent bills while waiting for the case to be resolved.

Can You Get a Cash Advance on a Pending Lawsuit?

Pre-settlement funding does allow cash advances on pending lawsuits for ongoing legal proceedings. Pre-settlement cash advances are one kind of advance that gives plaintiffs money based on how their case is expected to turn out.

Plaintiffs might choose to get a pre-settlement cash advance to meet their urgent financial demands while the case is pending. This includes paying for any home expenses, medical costs, and other debts that may be incurred as a result of the accident or injury.

Cost of a Personal Injury Lawsuit

The severity of the injuries, issues pertaining to responsibility, and other situations can all have a significant impact on the expense of personal injury litigation. Here are a few instances of recent incidents from various states:

Slip and Fall Lawsuit Loans for Personal Injury Cases

In California, slip and fall lawsuit loans for personal injury cases, including a shattered hip and brain trauma, were sustained in a grocery store slip and fall event. The plaintiff sued the store for failing to maintain a safe environment. A $300,000 settlement was reached in the case.

In New York, a poorly designed sidewalk led to persons slipping and falling and sustaining severe injuries that needed serious treatment and physiotherapy. Since the case was a civil one and a negligence lawsuit was filed against the property owner, the case was settled for $150,000.

Wrongful Death Lawsuit Loans for Personal Injury Cases

In Texas,wrongful death lawsuit loans for personal injury cases were sustained following a deadly vehicle accident brought on by an intoxicated driver. The relatives of the dead requested payment for lost companionship, burial expenses, and medical bills. The lawsuit was settled for $1.5 million.

In Florida, a patient in a nursing home died due to negligence and lack of adequate attention, and therefore, a wrongful death suit was filed. Besides compensation, the family sought punitive damages for the suffering they had undergone. It was settled that $5,000,000 was to be paid.

Cost of a Car Accident Lawsuit

Cost of a Car Accident Lawsuit

The extent of injuries, property damage, and responsibility are just a few of the variables that can significantly affect the average settlement for hit-and-run car accidents. Here are a few instances of recent incidents from various states:

The plaintiff in California got through a hit-and-run accident and experienced whiplash, back pain, and psychological trauma. Despite the challenges of identifying which party was negligent, the plaintiff’s lawyers managed to make a $200,000 deal with their insurers.

In New York, the plaintiff’s fractures, spinal injuries, and medical bills were associated with a hit-and-run accident. At the end of the legal battle, the plaintiff received $300,000 from their uninsured driver protection.

Comparing Pre-Settlement Funding Costs

When choosing pre-settlement finance, it’s important to consider a number of criteria in order to control costs:

  • Interest Rates and Fees: Research the fees and compound interest rates that different funding sources offer. Look for reasonable options and unambiguous requirements to reduce the overall cost of funding.
  • Conditions of Repayment: Review the conditions of repayment, taking note of the financing period’s duration and any penalties associated with early repayment. Provide a range of repayment options so you may choose a funding option that suits your spending plan.
  • Financing Amount: To ensure it meets your financial needs, consider the highest financing amount that each company provides.

What To Look for in a Funding Agreement?

Before signing an agreement with a funding provider, it is necessary to read the agreement and make sure it states all legal requirements, such as interest rates, fees, and repayment details. A non-recourse clause will reduce the financial exposure, while the confidential clauses safeguards the information and particulars of the case.

Make sure all conditions are well spelled and look for exclusion of privacy clauses to guarantee privacy and security during operations.

Tips on Negotiating Better Terms With Funding Companies

Negotiate to secure the most funding. You can do this by comparing firm offers, asking questions regarding contractual risks, and consulting a legal or economic professional.

Negotiating will assist you in bargaining for improved terms and ensure that the specifications are in harmony with the agreement’s averments. Thus, you can make the necessary preparations to enhance your opportunity to obtain a favorable funding deal.

Alternatives to Pre-Settlement Funding

Alternatives to Pre-Settlement Funding

Personal Loans: Offering comparatively higher interest rates and insisting on a perfect credit history, personal loans received from banks or via the Internet can cover legal expenses.

Credit Lines: Low-interest credit cards, home equity lines of credit or HELOCs may also be used to pay the legal costs, though it may attract high-interest rates and the attendant burden of lien.

Assistance Programs: There are also nonprofits and legal aid organizations that can help low-income people who are finding it difficult to cope with related legal jurisdiction issues. However, their availability and the conditions for receiving this honor might be restricted in certain ways.

Every option has its pros and cons:

  • Credit lines and personal loans offer convenience, with possibly higher fees and stricter approvals.
  • Assistance programs provide services for the public good and help to engage easily affordable lawyers, though they may be limited in number and funding.
  • Employing pre-settlement funding is convenient because the cash is provided on the spot, and there are no initial costs. Sometimes, the interest rates and charges could be higher than with other options.

Pre-Settlement Funding Case Studies

Pre-Settlement Funding Case Studies

Let’s examine a few case studies that highlight the significance and complexities of funding prior to settlement:

A Straightforward Personal Injury Case

Following a rear-end accident in which the plaintiff was clearly at fault, the plaintiff injured his neck and incurred significant medical bills. Because the case was expected to reach the jury quickly, the plaintiff’s lawyer secured $10000 in cash advances to cover living and medical expenses. The case was settled after 6 months for $50,000, and the total cost of funding amounted to $13,000, including interest and fees.

A Complex Hit-and-Run Accident Case

The case involved a pedestrian involved in a hit-and-run accident who suffered serious injuries, required lifelong treatment and was confused as to who was at fault. It was a complex case, and the legal process was lengthened, so she received $50,000 for the pre-settlement funds. After two years, her attorneys located the driver and were able to obtain $500,000 in damages. In total, with the fees and interest added, the money amounted to $65,000.

Lessons Learned From These Case Studies

  • Consider Funding Needs Thoroughly: To avoid overborrowing, one should be able to determine the requirements of his or her situation regarding money and borrow the exact amount.
  • Comprehend Case Complexity: You should be aware of potential case duration, as well as existing issues with precise definitions of financing costs.
  • Seek Transparent Conditions: If one has to look at the total financing cost he or she is willing to incur, it is wiser to select the source of financing that has the lowest cost per unit of funding and better terms.
  • Legal Strategy is Important: You should consult your legal department and coordinate with him or her regarding your case strategies and results regarding the pre-settlement funding because this may determine the level of investment practicality.

Working with Pre-Settlement Funding Companies

Working with Pre-Settlement Funding Companies

Stonewood Funding assists plaintiffs in overcoming financial obstacles throughout court cases by offering individualized guidance and prompt access to funding.

Our flexible terms and budget-friendly rates ensure that you can get the settlement money you require promptly while reducing costs. The skilled staff at Stonewood collaborates closely with plaintiffs and their attorneys to maximize case results and expedite the financing procedure.

How To Get Preapproved For

You can apply online or contact our team directly to get preapproved for pre-settlement funding with Stonewood. Provide specifics about your case, such as the type of event that occurred, the injuries you suffered, and the approximate settlement amount.

Our staff will evaluate your application as soon as possible and grant preapproval on the strength of your case.

How To Calculate the Loan Amount

The expected value of your impending settlement is calculated by the lawsuit loan calculator, which is usually used to calculate the loan amount available through Stonewood’s pre-settlement funding. Provide specifics on the amount of the settlement you anticipate receiving, as well as any other pertinent case facts.

After evaluating the probable worth of your settlement, our staff will provide a loan offer that fits your financial needs and the anticipated resolution of your case.

Need Pre-Settlement Funding?

Before hiring legal counsel for a lawsuit, it’s crucial to understand the cost of pre-settlement funds. This financial cushion is essential, but it’s also essential to be aware of interest rates, total charges, and potential payback obligations to avoid future costs.

Litigation financing might be complicated since paying bills while waiting for the case judgment can be stressful. Precise finance arrangement is a blessing, making it easy to obtain small lump-sum cash for everyday expenses and medical costs. Money serves to minimize the amount of cash plaintiffs will be forced to part with and instead focus their efforts on recovery as well as court proceedings.

Financial difficulties shouldn’t be a burden. Stonewood Funding offers same-day pre-settlement loans to give prompt assistance during this difficult period. Apply for funding right away to get the money you require immediately.

Stop by Los Angeles Settlement Funding if you’re in Los Angeles and need help with pre-settlement cash. Our staff is here to assist you every step of the way.

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Need cash before your case settles? There is no fee to apply, and you owe us nothing if you lose your case.

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