What Is Pre-Settlement Funding?
Pre-settlement funding, also known as lawsuit funding or legal funding, is a financial option available to plaintiffs involved in lawsuits. It provides immediate cash advances based on the potential outcome of a case. This type of funding is offered by specialized companies that assess the strength of your case and lend you money in exchange for a portion of your settlement or judgment if you win.
Why You Shouldn’t Settle Too Early?
Many plaintiffs feel the pressure to settle their cases quickly, especially if they’re facing mounting financial difficulties. Insurance companies or defendants may offer early settlement deals that seem tempting but often fall short of what you truly deserve. Here’s why pre-settlement funding can help you avoid settling too early:
1. Gives You Time to Assess Your Case
Without pre-settlement funding, you might feel forced to accept a quick settlement to cover your expenses. However, this could mean accepting an offer that is far lower than what your case is worth.
2. Helps You Avoid Financial Pressure
Legal cases can take time, and during that time, bills keep piling up. If you don’t have the means to pay for essential needs like medical bills, rent, or utilities, you might feel desperate to accept a low-ball offer.
3. Ensures a Fair Settlement
Insurance companies and defendants are often aware of the financial pressures plaintiffs face and may offer a settlement early, knowing that you might accept it due to financial hardship. By getting pre-settlement funding, you don’t have to rush into an agreement.
How Does Pre-Settlement Funding Work in Florida?
The process for getting pre-settlement funding in Florida is simple and straightforward. Here’s what you can expect:
- Case Evaluation: You or your lawyer contact a pre-settlement funding company. The company will evaluate the details of your case to determine if it’s eligible for funding. This typically includes reviewing case documents and talking with your attorney.
- Approval: If the funding company decides that your case is likely to result in a positive outcome, they will approve the funding. The approval process is quick and typically doesn’t require a credit check.
- Receiving Funds: Once approved, the money is provided directly to you. This can be used to cover your daily expenses, medical bills, or anything else you need during the course of your lawsuit.
- Repayment After Settlement: Once your case settles or you win the lawsuit, the agreed-upon amount is repaid to the funding company. You will keep any remaining funds from your settlement.
Conclusion
Pre-settlement funding in Florida can be a lifesaver for plaintiffs who need financial help during a lawsuit. It allows you to hold out for a fair settlement instead of rushing into a quick but insufficient agreement. If you're dealing with the stress of an ongoing legal case, pre-settlement funding can provide the breathing room you need to ensure the best possible outcome for your case.