FAQs on Personal Injury Loans and How to Obtain Them Properly with Apex Legal Funding
When someone is injured in an accident due to the negligence of another person, such as a car accident or medical malpractice, they may seek compensation for their expenses. If you have found yourself in this situation, you can file a personal injury lawsuit to pay for your medical bills and other costs resulting from the accident. To obtain financial compensation for your personal injuries, you will need to work with an experienced attorney who can determine the appropriate amount to ask for in a personal injury settlement. Personal injury law firms specialize in handling all types of personal injury claims and securing compensation for injured victims.
Pre-Settlement Funding – an option for you
If you have a personal injury claim and need funds to cover your expenses before your case settles, pre-settlement funding is an option for you. Pre-settlement funding is a financial product that is available to plaintiffs with a personal injury claim in specific circumstances. Depending on your state, it is either provided as a loan or through a purchase agreement under which the plaintiff sells a portion of their potential legal award. Pre-settlement funding is sometimes called consumer legal funding or a personal injury cash advance, but this terminology is only accurate in states where pre-settlement funding is offered as a loan.
With Apex Legal Funding, you can apply for pre-settlement funding while your case is pending and use the money to cover daily expenses or costs related to your injuries. To obtain pre-settlement funding, you will need to provide information about your case and work with a funding company that specializes in personal injury claims. Be sure to understand the terms of the funding agreement and any fees associated with it before signing. By obtaining pre-settlement funding, you can alleviate financial stress and focus on your recovery while your case is ongoing.
When pre-settlement funding is provided as a loan, Apex Legal Funding for instance, does not require immediate repayment from you. The lender will recoup the amount owed when your case is resolved. These types of loans are also known as lawsuit cash advances and are a form of pre-settlement funding or non-recourse financial assistance.
Why Pre-Settlement Fundings are Helpful
Pre-settlement funding, including personal injury loans, may sound simple, but they can be quite complicated to understand. If you are interested in pursuing this option, the best bet is to look for a consumer legal funder online or in the phone book. Companies specializing in this type of lawsuit funding may even promote themselves through TV ads. Once you have done your research and chosen a pre-settlement funding company like Apex Legal Funding,
you will find that the actual application process is fairly straightforward for personal injury loans or other types of consumer legal funding.
This is important because personal injury cases aren't always resolved quickly. In fact, the process can drag on for months or even longer. Delays happen when an insurance company drags its heels during negotiations, or there are backlogs in the courts. Meanwhile, life goes on for the accident victims, and the medical bills stack up.
If you are unable to work due to your injuries, you may soon fall behind on bills such as rent, mortgage, car payments, credit cards, and utilities, which can impact your personal finances. Additionally, you may face mounting expenses related to your injuries, which can lead you to accept an early settlement, even if it is below what you expect to receive from your liability claims. This can put undue stress on you and your family, distracting you from your recovery. Unfortunately, your options may be limited, and traditional bank loans may not be feasible without collateral. As a result, you may find lawsuit funding appealing.
Here are some frequently asked questions:
Can’t I just ask my attorney for a loan?
No. It is not only unprofessional but also unethical for an attorney to grant this type of request for pre-settlement funding. This is because doing so would likely result in a conflict of interest for the law firm.
Let’s consider a scenario where your attorney loans you $1,500 while your case is pending. Then, after he or she settles your case, you are dissatisfied with the outcome. In fact, you do not believe you should have to pay your attorney back because he or she did not settle the case for enough money.
Instead of asking your attorney for a loan, you may consider seeking funding from a reputable company like Apex Legal Funding. Such companies specialize in lawsuit funding and provide non-recourse loans that do not require collateral. This means that if you do not win your case, you will not have to pay back the loan
Lawsuit funding can be a valuable tool to help you manage your finances during a difficult time. By choosing a reputable company like Apex Legal Funding, you can get the funding you need without putting yourself at risk of further financial hardship.
Let's consider what might happen if Apex Legal Funding agreed to loan you money. Would your attorney hold onto the settlement funds until you agreed to the loan repayment and settlement terms? Would your attorney take legal action against you, or would you sue your attorney? Alternatively, would you file a grievance with the state bar? These are just a few of the issues that could arise if your attorney agreed to loan you money.
Moreover, most personal injury attorneys have multiple clients, and if they began making personal injury loans, their law firm would essentially offer the same services as companies that provide settlement loans. In most cases, this is not what they intend to do.
What role does my personal injury attorney play in the funding process?
To acquire pre-settlement funding, including a loan, your attorney must collaborate with Apex Legal Funding, confirm your receipt of funding, and validate your agreement. This is because Apex Legal Funding is making a financial decision based on your case and requires specific information from your attorney before issuing any type of pre-settlement funding, including loans. The funding company will specifically request information about your case from your attorney.
Many personal injury attorneys will attempt to persuade their clients not to pursue lawsuit funding. This is mainly because they are concerned about breaching the attorney-client privilege by cooperating with the funding company. Once your attorney hands over any part of your file, he or she no longer has control over what happens to it. Additionally, their reluctance to breach the attorney-client privilege is based on their legal obligation to serve as your fiduciary. Being a fiduciary means that they are legally obligated to handle all aspects of your case in the manner that is best for you.
In order to secure funding from Apex Legal Funding, you must sign an agreement ensuring repayment of the funding, which both you and your attorney must acknowledge. This agreement is crucial as it ensures that the company's interests are protected and that they are repaid as per the agreed terms.
How does the funding process work?
The funding process at Apex Legal Funding is typically based on the strength of your legal claim, meaning that approval is not contingent on your credit rating. To apply for pre-settlement funding, you can submit your application online and provide details about your case, as well as your attorney's contact information. The funding company will then verify your information and get in touch with your lawyer.
In order to assess the potential settlement and determine the merits of your case, underwriters will look for analogous fact patterns and study the average settlement amounts for cases similar to yours. If the funding company decides that your case has a high probability of settling for an amount that will be enough to repay their funding, they will provide you with the funding by depositing it into the bank account you specify based on your lawsuit settlement.
Within this context, it is important for you to understand how much funding companies usually agree to provide applicants. In most cases, this amount is no more than 10 percent of the estimated settlement amount of the case. If you apply for funding from Apex Legal Funding and they estimate your case will settle for $50,000, they will most likely provide you with a maximum of $5,000. Although this may not seem like a lot, it may be sufficient to cover your bills until your case is resolved.
One of the advantages of pre-settlement funding is that if you do not win your case or if it is not settled, you will not be obligated to pay Apex Legal Funding anything.
What are the disadvantages to personal injury funding?
However, personal injury funding also has its disadvantages. As previously mentioned, these loans are usually relatively small. Additionally, a lack of unified regulation under state and federal law may allow personal injury finance companies to charge significant charges and fees.
Charges and fees
These fees and charges can vary from one state or funding company to another. In cases where funding is provided through a non-recourse purchase agreement, Apex Legal Funding may charge flat fees based on monthly or other periodic increments. In states where funding is offered as a loan, the interest rates may differ depending on the state of residence, but they can still be significant. This means that even a small loan can quickly accumulate high-interest charges and fees.
In order to avoid repaying excessive amounts, some people settle their case quickly and for less than it is worth when faced with the repayment amount. Therefore, it is important to inquire about any upfront fees charged by funding companies, such as Apex Legal Funding.
It is important to keep in mind that even if your settlement amount is substantial, you will still be responsible for paying your attorney's fees and costs. In addition, you will also have to pay back the funding amount to Apex Legal Funding, which will be higher than the original amount you received.
What Kind of Personal Injury Cases are Considered for Personal Injury Pre Settlement Loans?
Regardless of the type of personal injury claim you have, you may be considered for a personal injury pre-settlement loan or other type of litigation funding. This includes cases such as car accidents with firetrucks, auto accidents, motorcycle accidents, bus accidents, pedestrian collisions, worker’s compensation accidents, medical malpractice, defective product lawsuits, and wrongful death claims.
Before granting any pre-settlement funding, Apex Legal Funding will review your personal injury case to determine if it qualifies, regardless of how the accident occurred.
Will I Face Any Risk with Personal Injury Funding?
If you are approved for personal injury lawsuit funding, which includes a loan, generally, you won't carry any risk of paying it back. In most cases, all the risk with pre-settlement funding is assumed by the personal injury funding company, which means that if something happens, and you lose your personal injury claim, the funding company has no recourse.
Even if you win the lawsuit, you may be awarded a lower amount from the insurance company for your personal injury claim than you were expecting. If the amount awarded is insufficient to pay all the bills in your personal injury case, the funding company may not receive their full amount.
While this is the standard for pre-settlement funding, you should not assume any of the terms of the funding. Ensure that you read the fine print or have your attorney read the contract before you sign to protect yourself and your personal injury settlement against the lawsuit funding companies.
Do You Still Have to Pay Your Bills While Waiting for Personal Injury Settlement Funding?
Even if you've applied for pre-settlement funding for your personal injury claim, you are still responsible for any bills that accumulate. While some creditors may be willing to wait until the lawsuit has been awarded before seeking repayment, others may require payment during the interim.
The main reason why you may consider personal injury lawsuit funding is to help you with ongoing bill payments until you receive your personal injury settlement. In this regard, Apex Legal Funding can be of great assistance.
What are the Main Differences Between Personal Injury Lawsuit Fundings and Traditional Loans?
There are two main differences between traditional loans and personal injury lawsuit funding.
Firstly, traditional lenders examine your credit rating, employment history, and other factors to decide whether to approve your loan request. However, when you seek a personal injury loan, the approval is based on the strength of your personal injury lawsuit for a future settlement.
Secondly, unlike regular loans, you do not have to make monthly payments to repay the balance with personal injury settlement funding. Moreover, legal funding companies such as Apex Legal Funding do not scrutinize your credit history to provide settlement funds. Once you are approved, you can receive immediate cash to cover lost wages, medical expenses, and other expenses.
In fact, you are not responsible for any payments as the attorney will submit payment for the pre-settlement funding when your case is awarded.
Apex Legal Funding Bills
The fees and charges for personal injury lawsuit funding can vary depending on the state, the funding company, or even within the same company and different cases. Apex Legal Funding will consider the strength of the case, the expected timeline for payment, and the amount being requested in the lawsuit to determine the fees. It is crucial to be aware of the cost for your pre-settlement funding before accepting the offer and finding out about any hidden fees.
Some Tips if You’re Considering Applying for Lawsuit Funding
- It is important to do your research and look for the personal injury lawsuit funding company that offers the best repayment terms, such as Apex Legal Funding. If you are selling a portion of your potential settlement, make sure you understand how that repayment amount will increase over time. If you are executing a loan agreement, look for the lowest interest rate and the fewest administrative fees, or points. Be sure you understand what the compounding interest will be and how you can compute it yourself.
- Beware of and avoid brokers, as they charge higher fees. Instead, deal directly with a personal injury lawsuit funding company such as Apex Legal Funding. Here’s how you can tell them apart: a broker will refer you to a funding company, and a funding company will make the funding directly to you.
- Make sure you know exactly how much the loan will ultimately cost you when your case is finally resolved, and you receive your financial compensation.
- Please do not sign any contracts or loan agreements until your attorney has reviewed them.
- 5. It's important to heed your attorney's advice as they are there to protect your best interests.
Apex Legal Funding provides pre-settlement funding, which is also known as consumer litigation funding. This funding is offered through various products depending on your state of residence or cause of action. Consumers may receive pre-settlement funding in the form of a purchase agreement, which assigns a portion of the pending proceeds from their legal claim.
In some states, such as CO, MN, MO, SC, WI, and some OK residents, consumers may receive funding in the form of a pre-settlement loan, which is also referred to as a lawsuit loan. It's essential to note that these transactions have significant differences, and consumers should carefully review and be aware of the type of transaction offered by any funding company.