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How to Get Lawsuit Settlement Early
by
JG Wentworth
•
February 21, 2025
•
4 min
Navigating the complex and often lengthy process of a lawsuit can significantly strain one’s finances and emotional well-being. For many plaintiffs, waiting for the lawsuit to settle is not just a test of patience but a period riddled with financial uncertainties. This is where pre-settlement funding comes into play as a practical solution, offering financial relief when it’s most needed. In this comprehensive guide, we will explore the concept of pre-settlement funding, its processes, benefits, and considerations, providing a thorough understanding of how to access your lawsuit settlement early and sustain your financial health during legal proceedings.
Understanding Pre-Settlement Funding
Pre-settlement funding, also known as lawsuit loans or legal funding, is a financial tool that provides plaintiffs with a cash advance against the expected settlement or judgment of their ongoing lawsuit. This option is commonly utilized in personal injury cases, civil rights claims, and other types of litigation where the plaintiff faces financial hardship due to their inability to work or the accumulating expenses related to their case.
The distinctive feature of pre-settlement funding is its non-recourse nature. This means the loan is secured by the future settlement, and repayment is contingent upon the successful resolution of your case. If the case does not settle or is lost, the funds advanced are not repaid, which removes the financial risk typically associated with borrowing.
Get Cash Before Your Lawsuit is Settled
Life doesn’t wait for your settlement, you shouldn’t either.
How Pre-Settlement Funding Works
The process for obtaining pre-settlement funding involves several critical steps:
- Application: The process begins when you submit an application to a pre-settlement funding company. This application will require detailed information about your legal case, including the type of case, the law firm handling it, and expected outcomes.
- Attorney Cooperation: Once your application is submitted, the funding company will need to communicate with your attorney to verify the details and assess the strength of your case. The funding company relies on the cooperation of your attorney, who must provide necessary documentation and insights into the case’s merits and potential compensation.
- Evaluation and Offer: After reviewing the case details and determining the likelihood of a successful settlement, the funding company will make an offer based on a percentage of the anticipated settlement amount. This offer can vary based on the specifics of the case and the company’s policies.
Key Considerations Before Applying for Pre-Settlement Funding
While pre-settlement funding can provide much-needed financial support, it’s essential to consider several factors before proceeding:
- Impact on Settlement Negotiations: Having immediate financial relief might influence your approach to settlement negotiations. Some plaintiffs may feel less pressured to accept a quick, lower settlement offer if they have financial backing during the litigation.
- Selection of a Funding Company: Choosing the right funding company is crucial. It’s recommended to select companies known for their ethical practices and transparency. Research customer reviews, compare terms across multiple companies, and consult with your attorney before making a decision.
- Regulations and Legal Implications: Pre-settlement funding is not regulated in the same way as other types of lending, and the industry’s practices can vary significantly. Moreover, not all states have the same legal framework regarding lawsuit funding, so understanding the legalities in your jurisdiction is necessary.
Concluding Thoughts
Pre-settlement funding offers a strategic financial solution for plaintiffs facing economic hardships during prolonged legal battles. By providing access to a portion of your expected lawsuit settlement early, it can help alleviate financial burdens and give you the freedom to focus on your case rather than your bills. However, like any financial decision, choosing to seek pre-settlement funding should be made with a full understanding of the implications, costs, and processes involved. Careful consideration, coupled with guidance from your legal advisor, will ensure that this financial tool is used effectively to support your needs without compromising the outcomes of your legal proceedings.
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The information is provided for educational and informational purposes only. Such information or materials do not constitute and are not intended to provide legal, accounting, or tax advice and should not be relied on in that respect. We suggest that You consult an attorney, accountant, and/or financial advisor to answer any financial or legal questions.
* Program length varies depending on individual situation. Programs are between 24 and 60 months in length. Clients who are able to stay with the program and get all their debt settled realize approximate savings of 51% before our 25% program fee. This is a Debt resolution program provided by JGW Debt Settlement, LLC (“JGW” of “Us”). JGW offers this program in the following states: AL, AK, AZ, AR, CA, CO, FL, ID, IN, IA, KY, LA, MD, MA, MI, MS, MO, MT, NE, NM, NV, NY, NC, OK, PA, SD, TN, TX, UT, VA, DC, and WI. If a consumer residing in CT, GA, HI, IL, KS, ME, NH, NJ, OH, RI, SC and VT contacts Us we may connect them with a law firm that provides debt resolution services in their state. JGW is licensed/registered to provide debt resolution services in states where licensing/registration is required.
Debt resolution program results will vary by individual situation. As such, debt resolution services are not appropriate for everyone. Not all debts are eligible for enrollment. Not all individuals who enroll complete our program for various reasons, including their ability to save sufficient funds. Savings resulting from successful negotiations may result in tax consequences, please consult with a tax professional regarding these consequences. The use of the debt settlement services and the failure to make payments to creditors: (1) Will likely adversely affect your creditworthiness (credit rating/credit score) and make it harder to obtain credit; (2) May result in your being subject to collections or being sued by creditors or debt collectors; and (3) May increase the amount of money you owe due to the accrual of fees and interest by creditors or debt collectors. Failure to pay your monthly bills in a timely manner will result in increased balances and will harm your credit rating. Not all creditors will agree to reduce principal balance, and they may pursue collection, including lawsuits. JGW’s fees are calculated based on a percentage of the debt enrolled in the program. Read and understand the program agreement prior to enrollment.
JG Wentworth does not pay or assume any debts or provide legal, financial, tax advice, or credit repair services. You should consult with independent professionals for such advice or services. Please consult with a bankruptcy attorney for information on bankruptcy.