Common Uses for Post-Settlement Funding

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.

You finally reached the end of a personal injury lawsuit and accepted a favorable settlement offer from the defendant. You expected that by now, your financial worries would be over. Yet you haven’t received any portion of the settlement you were promised.

Lawsuit settlements can take some time to hit your bank account, which is why many plaintiffs seek post-settlement funding to bridge the gap. This form of financing offers an advance on a lawsuit settlement, allowing you to experience financial relief almost immediately.

So, what can you use post-settlement lawsuit funding for? Explore a few common uses for this type of financing.

What Is Post-Settlement Funding?

Post-settlement funding offers financial relief while you wait for a lawsuit settlement to arrive. This form of legal financing takes the form of a cash advance on a portion of your settlement. Once the settlement hits your account, you will use it to repay the borrowed amount, plus fees.

Many types of post-settlement funding exist across the industry. Some lenders charge interest and require monthly payments. Others expect you to repay the loan in a lump sum and do not charge interest, instead implementing a flat fee.

If you decide to proceed with post-settlement legal financing, make sure the option you choose is non-recourse. This means that should the settlement check never arrive, you will not need to repay the borrowed amount.

Common Ways To Use Post-Settlement Funding

Legal funding companies typically do not limit how you can use post-settlement funding. Once you receive a settlement advance, you can use it however you see fit.

Many plaintiffs use a settlement advance for the following purposes:

• Pay off medical bills: You may have creditors hounding you for medical bill payments. Instead of delaying payments further while you await a settlement, you can begin paying off these bills immediately with non-recourse funds.
• Continue taking time off work: You may not be ready to return to work just because your lawsuit has ended. While waiting for settlement proceeds to hit your account, you can use funding to stay afloat and continue taking time off work.
• Pay everyday living costs: Use your lump-sum payment from the funding company to pay rent, utilities, insurance premiums, or other everyday costs that don’t stop just because you are navigating a personal injury case.
• Support your family: Your family shouldn’t have to experience financial hardship due to an accident that was not your fault. Post-settlement funding lets you continue meeting your family’s financial needs until the settlement arrives.
• Purchase medical equipment: If you need at-home medical equipment to resume a normal life after an accident, post-settlement funding can allow you to purchase these items outright instead of putting them on credit cards and owing interest.
• Avoid late fees on bills: If you are behind on credit card bills, utilities, or any other bills, you may face interest, late fees, or other penalties for failing to pay. You can avoid further penalties by using post-settlement funding to settle these debts immediately.
• Pay off high-interest debt: Paying steep interest on debt every month is essentially throwing money away. Consider using some of the post-settlement funding to pay off high-interest debt and help you preserve your remaining wealth.
• Take a vacation: You and your family have likely experienced immense stress since the accident. Many post-settlement funding recipients use the money to take a vacation to symbolize stepping forward into a new chapter.

However you decide to use post-settlement litigation funding, you can experience financial relief and avoid stressing about when the settlement check will arrive.

Example Use Cases for Post-Settlement Funding

For plaintiffs experiencing financial hardship while they await their settlements, post-settlement funding can take a significant weight off their shoulders. These are a few example cases of plaintiffs who may strongly benefit from financial relief:

• Use case 1: Christina has suffered a life-changing back injury in a car accident and is facing insurmountable medical bills. She has charged insurance copays and other medical costs to credit cards while awaiting her lawsuit settlement. Now, she can pay off her credit card bills and avoid further interest and fees.
• Use case 2: Angela’s family has struggled right along with her while she navigated a year-long lawsuit after her father’s wrongful death. Now, she can use her post-settlement funding to take her family on a much-needed vacation.
• Use case 3: Robert needs to make several renovations to his house to accommodate his wife’s wheelchair use and physical limitations after a medical malpractice incident. He uses the post-settlement funding to start on these renovations and have the house ready by the time she is released from the rehab facility.
• Use case 4: Jerry has drained his savings to take time off work during his slip-and-fall accident recovery and lawsuit. Now that the lawsuit is over, he thought he would be ready to return to work, but he isn’t yet. Post-settlement funding helps him afford everyday expenses while awaiting his lawsuit payout.

Apply for Post-Settlement Funding Today

You shouldn’t need to go another day suffering financial hardship with a lawsuit settlement right around the corner. With Rockpoint Legal Funding, you can apply for non-recourse funding and seek an advance on your settlement. We use a simple application and fast approval process; many applicants receive their funds within just a few days.

Now that you know the post-settlement funding benefits, apply for funding today by calling 855-582-9200. We are available 24/7, 365 days a year, to speak with you.