Published on November 14, 2016
Many accident victims are not aware of pre-settlement funding and the benefits that come with it. When you are involved in an accident, bills can pile up fast depending on the degree of impact on the victims (and vehicles, if any involved). Post-accident financial burdens vary; in general, the higher the degree of impact, the higher the bills, and the more time away from work successes.
What is pre-settlement funding?
Pre-settlement funding is simply a loan provided to a client prior to receiving the settlement from his or her insurance company from a personal injury lawsuit.
While you may not be directly responsible for the costs of the accident, you won’t receive a check from any insurance companies until the claim has been settled. When you have a personal injury lawyer representing you, the process usually takes several months, and can sometimes take more than a year, depending on the number of vehicles involved, the degree of impact, the insurance company at fault, and more.
While the lawsuit process is ongoing, you may have financial burdens and obligations which your abilities to manage and satisfy may have been compromised due to the unexpected obstacles that arise following an accident.
For example, an accident victim works for a contractor and makes a living by performing physical labor on the daily. He or she may be unable to work for a certain period of time while he or she recovers from a broken leg or back injury as a result of that accident. Thus, the accident victim cannot handle physical labor and is forced to take time off of work to recover, and as a consequence has difficulty paying their rent.
Those costs, such as lost wages, are covered by the insurance companies at the end of the settlement. However, those reimbursements will not be available to you until the end of the process and the case has come to a resolution.
This is where you can turn to pre-settlement funding. You can bring your personal injury attorney’s attention to any financial concerns you may have, and they may be able to direct you to a loan company they may work with.
How does pre-settlement funding work?
Usually, you can call the loan company directly or apply for a loan online. Sometimes, the attorney’s office can contact the company on your behalf and file your request themselves. The company then typically reviews your case with the law firm in order to approve your claim for a certain amount. The process usually takes anywhere from a under 1 hour to 48 hours, depending on the initial request time and available information, as well as where you are along the case and treatment progress.
Once you are approved, the loan company contacts you to inform you how much your advance was approved for, and then sets up an appointment for you to pick up your check. You may then cash or deposit that check.
How is pre-settlement funding reimbursed?
Any initial loan amount and interest is reimbursed by the attorney, who writes a check once the settlement has been reached and the case has closed. Upon receiving the settlement from the insurance companies, your attorney uses a portion of the total amount to eliminate any outstanding balances. You may reimburse the loan yourself prior to the settlement, otherwise your attorney will write the check when he or she receives the settlement once the case closes and mediation has ended.
If you or a loved one has been victim of a traffic accident and need a car accident attorney anywhere in Florida, call us at 1-800-INJURED, so we can get you in contact with an attorney who will help you get the most of your benefits. Insurance companies will try to give you the bare minimum or what you should be entitled to. Our network provides you with attorneys all over Florida who are ready to help you anytime, so contact us at [email protected] or at 1-800-INJURED. You can also fill out our online form and provide us with your accident information right from the get-go, so we can get back to you with all the details right from the start.
Category: Personal Injury