What is Pre

Why Do People Need Pre-Settlement Funding?

If you are in an accident and can’t work, your bills don’t stop. Your rent or mortgage is still due and so are your utilities. If you’re injured, the last thing you need is additional stress worrying about your bills. You need to concentrate on your health, which is hard if you’re worrying about your electric being shut off.

Can Pre-Settlement Funding Help Me Get a Better Settlement?

Indirectly, yes. If you’re worried about not being able to pay your mortgage and you’re afraid you’ll lose your home, you’ll want to settle quickly. It’s only natural. Unfortunately, the attorneys for the party you are suing will know this and offer you less than you deserve. Desperation can push you into accepting a low offer.

What Does Pre-Settlement Funding Cost?

It varies among the different companies. Some charge a flat fee while others charge interest. There may also be an application fee. It’s important that a person understand the total cost before accepting any funding. Many, but not all, companies offering pre-settlement funding will not ask the borrower to repay the advance if there is no settlement.

Can Pre-Settlement Funding Pay for Medical Care?

Yes, there are no restrictions regarding using the funds to pay for surgeries, rehabilitation or necessary adaptive medical equipment. Even if the injured party has medical insurance, they may have substantial out-of-pocket costs. It’s essential to document these expenses, as the attorney will add them to the settlement amount requested.

What Can a Person Use Pre-Settlement Funding For?

Besides medical care, the plaintiff can use the funding for all daily living expenses. This includes housing costs, utilities, food and other common household costs. A person could also use it to replace their vehicle if it was damaged in an accident and there is no insurance to cover the cost. The money is meant to cover lost income and make a person whole again, not to take an unplanned vacation to Disney Land.