Accident Settlement Funding: A Financial Safety Net for Plaintiffs

Disclaimer: Consumer legal fundings and advances are not loans under applicable financing laws. Rockpoint’s products are non-recourse, meaning if you don’t win your case, you don’t have to pay us back. Receiving financial support in connection with a legal case is typically (and oftentimes incorrectly) referred to as a “lawsuit loan” or “loan.” Therefore, for the ease of search references, these terms may be used in this context to refer to our funding products, but we maintain our separateness from consumer loan products in all legal aspects.

Whether it’s a car crash, a medical mistake, or a nasty fall, an accident can change your life instantly. Personal injury lawsuits offer potential hope for compensation. But how do you pay your bills in the meantime?

Accident settlement funding may be the answer. This post covers what you need to know about settlement funding, including what it is, how you qualify, and when it may benefit you.

What Is Accident Settlement Funding?

Accident settlement funding is an advance on a pending lawsuit. A third-party funding company reviews your case and provides immediate cash if you qualify. If you win your lawsuit, the company collects payment from your compensation amount. If you don’t win, you owe nothing. This type of arrangement is called non-recourse funding.

You may also hear accident settlement funding called legal funding services, litigation financing, plaintiff funding, or a pre-settlement cash advance. Whatever the name, these programs provide financial relief to plaintiffs, helping cover living expenses, medical bills, and other costs while they wait for their claim to conclude.

When Can Accident Settlement Funding Help?

While accident settlement funding isn’t right for every case, you might consider applying in the following circumstances:

• Your injuries prevent you from working: If your job is your only source of income, you may quickly find yourself underwater financially after a serious injury. Legal funding can help you pay your rent, put food on the table, and keep your lights on.
• Your insurance coverage isn’t sufficient: Not everyone has health insurance — including working people. Even with medical expenses coverage, you may still face high co-pays, outrageous deductibles, or denials for specific treatments. Pre-settlement funding can help pay for your medical bills as you recover.
• You don’t have a lot of savings: Many people live paycheck to paycheck. When tragedy strikes, they don’t have a savings account to fall back on. If this describes you, accident settlement funding can be a financial lifeline.
• You don’t qualify for a bank loan: A traditional loan can be a good source of funds, but not everyone receives approval. Plus, unlike accident settlement funding, a bank loan requires repayment even if you never receive a settlement.
• You feel pressured to settle: If you’re struggling financially, you may be tempted to accept any offer from the insurance company. An invaluable aspect of legal funding is that it gives you settlement negotiation leverage. You can use litigation funds as a safety net while your attorney works to negotiate a fair deal for you.

What Case Types Qualify for Accident Settlement Funding?

Accident settlement funding can help anyone injured in an accident due to someone else’s negligence or intentional conduct. Examples include the following:

Personal Injury Claims

• Car crashes
• Truck accidents
• Bicycle accidents
• Train and bus accidents
• Motorcycle collisions
• Pedestrian accidents
• Dog attacks

Premise Liability Claims

• Slip-and-fall accidents
• Trip-and-fall accidents
• Swimming pool accidents
• Inadequate security
• Negligent maintenance

Medical Malpractice Claims

• Birth injuries
• Surgical errors
• Medication mistakes
• Amputation/loss of limb
• Traumatic brain injuries

Wrongful Death Claims

• Traffic collisions
• Medical malpractice
• Defective products
• Nursing home negligence
• Aviation accidents
• Toxic chemical exposure

Work Injury Claims

• Workers compensation claims
• Workplace injuries like falls, crush injuries, or repetitive strain injuries
• Workplace illnesses like toxic exposure, hearing loss, or infectious diseases

Although not accidental, injuries caused by someone else’s intentional misconduct — including crimes — can also qualify for legal funding. Examples include assault and battery, sexual assault, and other deliberate actions.

What Are the Pros and Cons of Accident Settlement Funding?

You may be evaluating other options for financial support during your legal case, such as taking out a bank loan, using credit cards, or borrowing from family. Below are some of the pros and cons to consider for accident settlement funding:

Pros:

• It’s nearly instant: Lawsuits can take years to resolve. By contrast, legal funding companies can provide you with cash quickly — often within 24 hours of your approval.
• There’s no credit check: You don’t need to have a certain credit score, provide proof of employment, or pledge collateral to qualify. Instead, approval is based on the strength of your case.
• There are no spending restrictions: You can use your accident settlement funding however you wish, including medical expenses, mortgage payments, vehicle repairs, or utility bills.
• It’s non-recourse funding: If you lose the case, you don’t need to repay the funds. The financial risk shifts to the funding company and away from you.

Cons:

• Your case may not qualify: Funding companies take a big risk in offering non-recourse loans, so they tend to focus on the cases they believe are more likely to be successful.
• It can be expensive: Settlement funding providers charge fees and interest, which can make legal funding more expensive than traditional loans. Plaintiffs should evaluate their options carefully and choose companies with reasonable terms.
• You won’t receive your full payout: In return for your cash advance, you will give up a portion of your settlement when your case concludes. However, financial funding may also give you more time for your attorney to negotiate a higher settlement, which may improve the overall bottom line.

Apply for Accident Settlement Funding Today

While your attorney provides legal process support, Rockpoint Legal Funding can provide financial support. To apply, you just have to fill out a short application form. We will review the details of your case.

If you qualify, we will send you an offer detailing the advance amount, associated fees, and contract terms. ??????Once you accept, you can typically access funds within 24 hours. Learn the personal injury settlement loan basics, then contact us at (855) 542-8992 or apply online today!