If you’ve been seriously injured due to someone else’s negligence and are pursuing a personal injury lawsuit, you might be worried about managing your finances during the legal process. According to the National Safety Council, there were 5.2 million medically consulted injuries from motor-vehicle incidents, with estimated total injury costs of $481.2 billion.
“Due to the high costs involved, lawsuit funding offers a practical solution for individuals involved in personal injury lawsuits who are experiencing financial hardships. This type of funding provides access to funds before a settlement is reached, which can help cover various expenses such as medical bills, household costs, and other financial obligations.”
Accessing lawsuit funding without being employed provides crucial relief for individuals dealing with physical and emotional injuries. It eases financial stress, supports living expenses, and allows them to focus on recovery while seeking fair compensation through the legal system.
Understanding Lawsuit Funding
Navigating the complexities of lawsuit loans can be overwhelming amidst a legal battle. Understanding the different types of available loans can empower you to make informed decisions and alleviate your financial strain during this challenging time.
What is Lawsuit Funding?
Lawsuit funding, also known as pre-settlement funding or legal funding, is a type of cash advance provided to plaintiffs in personal injury cases. Unlike traditional loans, lawsuit funding is based on the strength and merits of your case rather than your employment status, credit history, or financial situation.
As a growing business, lawsuit funding companies recognize the challenges faced by plaintiffs in personal injury cases, which can often drag on for months or even years. This prolonged legal process can leave individuals struggling to cover their living expenses and support their families. Lawsuit funding addresses this issue by offering a cash advance based on the potential settlement or judgment in the case, providing plaintiffs with the financial flexibility to pursue their claims fully.
In 2023, the U.S. saw a notable trend in the commercial litigation funding sector. While the total amount of funds managed remained stable, there was a nearly 14% decrease in new investments by these companies. Despite this dip, the industry remains robust, with 39 active funding sources identified by Westfleet Advisors. These entities collectively managed $15.2 billion, indicating the significant scale and potential of the commercial litigation funding market.
Types of Lawsuit Funding
There are several types of lawsuit funding available, depending on the stage of your case and your specific needs:
- Pre-settlement funding: This is the most common type of lawsuit funding, providing a cash advance while your case is still pending.
- Post-settlement funding: If you’ve reached a settlement but are waiting for the funds to be disbursed, post-settlement funding can help bridge the gap.
- Appeal funding: If you’ve won your case but the defendant has appealed the decision, appeal funding can help cover your expenses while the appeal is pending.
As highlighted by the National Law Review, pre-settlement funding acts as a valuable lifeline for plaintiffs involved in drawn-out litigation. It allows access to anticipated settlement money without repayment obligations if the plaintiff loses the case. Compared to other lawsuit funding options, it is non-recourse, meaning the funding company cannot seek repayment from personal finances but only from the settlement itself. This unique feature is essential because it ensures financial relief during litigation without exposing the plaintiff to additional risks.
Employment Status and Lawsuit Funding Eligibility
Lawsuit funding is determined by various criteria, ensuring that applicants can access funds regardless of their employment situation. Understanding these criteria is essential for anyone considering lawsuit funding.
Is Employment a Requirement for Lawsuit Funding?
One of the most common questions we hear from potential clients is whether they need to be employed to qualify for lawsuit funding. The answer is a resounding no! Unlike traditional lenders, lawsuit funding companies are more interested in the strength of your case than your personal financial situation.
At Mayfair Legal Funding, we understand that many personal injury plaintiffs are unable to work due to their injuries, and we believe that shouldn’t prevent them from accessing the financial support they need. We evaluate each case on its own merits, looking at factors like liability, damages, and insurance coverage to determine eligibility for funding.
Factors That Determine Eligibility for Lawsuit Funding
So, if employment isn’t a factor in determining eligibility for lawsuit funding, what is? The primary considerations are the strength of your legal case and the likelihood of a successful outcome. Some of the specific factors we look at include:
- The clarity of liability (i.e., who was at fault for the accident or injury)
- The severity of your injuries and the expected duration of your recovery
- The amount of damages you’re seeking (including medical expenses, lost wages, and pain and suffering)
- The insurance coverage available to compensate you for your losses
In our experience, cases involving clear liability, significant damages, and adequate insurance coverage are the most likely to qualify for lawsuit funding. Some common examples include:
- Car accidents caused by another driver’s negligence
- Slip and fall accidents on poorly maintained property
- Medical malpractice resulting in serious injury or death
- Defective products that cause harm to consumers
If you’re unsure whether your case would qualify for funding, the best thing to do is reach out to a reputable lawsuit funding company like Mayfair Legal Funding for a free case evaluation. Our experienced team can assess the merits of your case and let you know if you’re eligible for funding.
Applying for Lawsuit Funding
Now that you’ve considered taking out a law loan understanding the application process and criteria can help ensure a smooth and successful funding experience.
The Application Process
If you’ve decided that lawsuit funding is right for you, the next step is to apply. At Mayfair Legal Funding, we’ve made the application process as simple and straightforward as possible:
- Fill out our online application or call us at (888) 357-1338 to apply over the phone.
- Provide some basic information about your case, including the type of case, the stage of litigation, and your expected settlement amount.
- With your permission, we’ll reach out to your attorney to request additional documentation, such as your complaint, medical records, and police reports.
- Our underwriting team will review your case and make a funding decision, usually within 24-48 hours.
If approved, we’ll send you and your attorney a funding agreement to review and sign. Once the agreement is executed, we’ll wire the funds directly to your bank account, and you can use the money for any purpose you choose.
Documentation Required
To evaluate your case for funding, we’ll need to review certain legal and medical documents related to your claim. These may include:
- The complaint or petition filed in your case
- Medical records and bills demonstrating the extent of your injuries
- Police reports or incident reports describing how the accident or injury occurred
- Witness statements or other evidence supporting your claim
Don’t worry if you don’t have all of these documents on hand – your attorney can help you gather the necessary paperwork. And if you have any questions along the way, our team is always here to help!
Repayment of Lawsuit Funding
Repayment of lawsuit funding involves returning the advanced funds once your case settles or you receive a favorable judgment. Understanding the terms and conditions of repayment is crucial to managing this financial support effectively.
How Repayment Works
One of the biggest advantages of lawsuit funding is that you only have to repay the advance if you win your case. If you lose, you owe us nothing! Here’s how the repayment process typically works:
- When your ca se settles, or you receive a judgment in your favor, the settlement funds are sent to your attorney’s trust account.
- Your attorney deducts their fees and costs, as well as any medical liens or other obligations.
- Your attorney then sends us the agreed-upon repayment amount from the remaining funds.
- You receive the rest of the settlement money.
It’s that simple! There are no monthly payments, no upfront costs, and no risk to you if your case is unsuccessful.
Repayment Terms and Conditions
Of course, as with any financial transaction, it’s important to understand the terms and conditions of your lawsuit funding agreement before signing. At Mayfair Legal Funding, we pride ourselves on being transparent and upfront about our fees and repayment terms.
Our funding advances typically come with a one-time, non-compounding fee that is only payable if you win your case. The fee is calculated as a percentage of the funded amount and can vary depending on the specifics of your case. We’ll clearly outline the fee in your funding agreement so there are no surprises down the road.
It’s also important to note that lawsuit funding is not cheap compared to traditional loans. Because funders take on significant risk by advancing money without recourse, the fees are higher than what you’d pay for a bank loan or credit card. However, for many plaintiffs, the benefits of getting cash when they need it most outweigh the costs.
Benefits of Lawsuit Funding for Unemployed Plaintiffs
Understanding the benefits of lawsuit funding can be crucial for unemployed individuals seeking justice. Here are the key advantages:
Financial Relief During the Legal Process
If you’re out of work due to your injuries and facing mounting bills and expenses, lawsuit funding can provide much-needed financial relief. With a cash advance in hand, you can:
- Pay your rent or mortgage to avoid eviction or foreclosure
- Cover your medical expenses and prescription costs
- Put food on the table and provide for your family’s basic needs
- Keep your utilities on and your car running
By taking care of these essential expenses, you can focus on your physical recovery and your legal case without the added stress of financial pressure.
Leveling the Playing Field
In addition to providing financial relief, lawsuit funding can also help level the playing field in your legal battle. When you’re seriously injured and out of work, the insurance company knows you may be desperate for a quick settlement. They may lowball you or drag out the process, hoping you’ll give in and accept less than your case is worth.
With lawsuit funding, you have the financial resources to hold out for a fair settlement or take your case to trial if necessary. Your attorney can focus on building the strongest possible case without worrying about your ability to pay their fees or cover litigation costs.
In our experience, plaintiffs who receive lawsuit funding often end up with significantly higher settlements than those who don’t. By giving you the ability to pursue full case value, funding can make a real difference in your recovery.
Key Takeaways and Next Steps
If you’re considering lawsuit funding but don’t know where to start, here are a few key takeaways to keep in mind:
- Employment is not a requirement for lawsuit funding eligibility. Funders base their decisions on the strength of your case, not your personal finances.
- Lawsuit funding can provide much-needed financial relief if you’re unable to work due to your injuries.
- Funding can also level the playing field in your legal battle, giving you the resources to pursue full case value.
- The application process is simple and straightforward, and funding decisions are typically made within 24-48 hours.
- You only repay the funding advance if you win your case, and there are no monthly payments or upfront costs.
If you’re ready to take the next step, we encourage you to reach out to Mayfair Legal Funding for a free case evaluation. Our experienced team can assess your case, answer your questions, and help you determine if funding is right for you. Call us today at (888) 357-1338 or apply online to get started!
Call Mayfair Legal Funding Today to Explore Your Options
At Mayfair Legal Funding, we understand the challenges that personal injury plaintiffs face, especially when they’re unable to work due to their injuries. That’s why we’re dedicated to providing easy, affordable access to lawsuit funding for plaintiffs across the country.
Our application process is quick and hassle-free, and our funding decisions are based on the merits of your case, not your employment status or financial history. If approved, you could have cash in hand in as little as 24 hours to pay your bills, support your family, and give your attorney the time they need to fight for the settlement you deserve.
So if you’re considering lawsuit funding, don’t let concerns about employment hold you back. Call Mayfair Legal Funding today at (888) 357-1338 or apply online to learn more about your options. Our team is here to help you get the financial support you need to move forward with your life and your case.
