Do You Need a Lawyer to Receive Pre-Settlement Funding?

by | Apr 10, 2023 | Frequently Asked Questions, Legal Funding, Personal Injury | 0 comments

Why Legal Representation is Necessary to Get a Lawsuit Loan

Plaintiffs in injury lawsuits wait a long time for their settlement compensation to arrive as the claim process is frequently slow. However, as a victim, you may not be able to work, yet still need to pay medical bills and living expenses. A lawsuit loan can help you through this time, but you need your attorney’s approval before proceeding.

Pre-settlement legal funding helps to bridge the gap between the date of your injury to payment from the lawsuit. Along with your attorney, Triumph Legal Funding makes pre-settlement legal financing fast and easy. We have a completely transparent process and work quickly to help you  meet your financial needs.

To discover how to get the funds you need, contact our office at (973) 362-3500 to speak to a team member.

Why Can’t I Do This on My Own?

Every consumer legal funding company requires plaintiffs to have an attorney overseeing personal injury cases. You need your attorney’s consent because of the risk involved. Pre-settlement funding is non-recourse funding, meaning the funding company doesn’t have any recourse if they don’t receive repayment. Thus, they carry the entire risk.

Legal funding may not get repaid because many plaintiffs don’t win their lawsuits. A strong case is necessary to win a personal injury claim in court. If the claim doesn’t result in an award, the legal funding company won’t receive money back from the amount it lent. Additionally, the amount awarded can also be less than the claim, resulting in less money available to cover all expenses.

Your Attorney Works Directly with the Funding Company

Your attorney is involved in your funding application by providing essential information about your injury case. Having legal representation proves that your case has merit. Your legal team will provide pertinent information, including how much compensation has been requested and how close the case may be to resolution. Once we have approved your loan, your attorney must sign the papers providing you with the money.

How to Qualify for Pre-Settlement Funding

Eligibility for pre-settlement funding depends solely on the strength and value of the legal case. The stronger the claim, the more likely an applicant will qualify for a loan. Additionally, the higher the expected value of the case, the more upfront money you can expect to receive. Checking credit scores, current financial status, or employment history is unnecessary.

Can I Be Denied Funding?

Your attorney may have valid reasons to deny your funding request. You may have already exceeded the number of legal funding allowed. It may also be too early to apply. To avoid denial, speak to your attorney before approaching a pre-settlement funding company. Discuss your cash flow needs and why you want to apply.

If you have already been turned down, work with your legal team to improve your case. The timeline for the award also factors into loan approval. The closer you are to settlement, the better your chance of getting the funds you need. Note that you can’t ask your attorney for a cash advance on your claim because the law views such actions as a conflict of interest.

Repayment After the Claim is Awarded

Settlement funds go to the attorney, not the plaintiff. The attorney places the money in escrow until the funds clear and then begins issuing payments to creditors according to a prioritized list. Pre-settlement funding companies usually place liens against lawsuits to ensure they receive payment before lower-priority creditors.

What If I Don’t Win My Case?

Pre-settlement funding protects you if this happens, as our company only approves your loan if we think you have an excellent chance of winning it. You don’t have to repay the funds you receive according to the terms of your agreement. Neither will you have to repay any funds as your case progresses.

Get the Legal Funding You Need Now

Technically, our pre-settlement funding is not a loan because you never have to repay any of the money you receive. Triumph takes a predetermined percentage of your final award as payment for our services, meaning we only get paid if you win. We provide funding for attorneys and injury victims to help cover medical treatments and out-of-pocket expenses.

In many cases, you will receive money in your bank account within 24 hours after approval to help ease the hardships caused by your injuries. If you have a pending lawsuit but need cash now, call Triumph at (973) 362-3500 to learn more about how we can help. You can also apply online. Approval is fast, easy, and risk-free.