What is Pre-Settlement Funding?
Even if you have a strong case, lawsuits are rarely fast processes. Sometimes, personal injury litigation can go on for months or even years. Meanwhile, you are stuck with medical bills and everyday living expenses because your injuries keep you from working and receiving a paycheck. Pre-settlement funding –also know is a lawsuit or litigation advance – is a way to get immediate cash for structured settlement payments pending the outcome of a legal action.
Lawsuit settlements are valuable assets, especially if you have a strong case and a good chance at winning a settlement. If you need cash now, you may be eligible to receive a cash advance of up to $30,000 against your future structured settlement payments, which can help you in meeting your immediate financial needs. If the case is settled in your favor, CBC as the funder will reclaim this money, along with a fee for our services.
CBC assumes a certain amount of risk in this type of transaction, similar to that faced by the law firm that takes a case on a contingency basis. A pre-lawsuit settlement transaction is classified as a “non-recourse arrangement.” This means that if you are unsuccessful in your lawsuit, you do not have to pay back the cash advance and CBC essentially loses the lawsuit cash advance it has paid out to you.
Depending on the nature of your lawsuit and individual circumstances, you may wish to look into other alternatives before deciding upon a pre-settlement funding arrangement against a future structured settlement payout. Your own attorney can offer you counsel in this area. If you and your lawyer decide that pre-settlement funding is the best solution for your particular financial situation, CBC’s staff will make the arrangements as quickly as possible (generally, in about 3-5 business days) – and if for some reason you do not win your case, you will not have to pay back the money.
CBC Settlement Funding provides Pre-settlement Funding
CBC Settlement Funding can provide you with a cash advance against your future settlement payments. Contact us today for more information on customized cash options to fit your financial needs.
Pre-Settlement Funding: Frequently Asked Questions
What Is A Lawsuit Cash Advance?
If you are involved in an injury lawsuit, are unable to work and have ongoing expenses, it is very difficult to wait for your case to be settled. For such a situation in which you need cash now, CBC Settlement Funding may be able to provide you with a lawsuit cash advance against your final settlement.
There is a significant difference between a litigation cash advance and a payday loan, however. If you have ever dealt with a payday lender, you were required to provide a social security number and other employment information. This way, the payday lender can collect its share directly the next time your employer pays you.
You will not have to provide this information when you apply for advance money for lawsuit settlements, however. The reason is that such funding is non-recourse. When judge in such cases rules in favor of the defendant – in other words, if the plaintiff receiving a cash advance loses the case – the plaintiff is not required to repay the advance and the structured settlement company providing the funding must bear the loss.
What Do I Need To Know About Pre-Settlement Funding?
- No out of pocket expenses. You do not have to pay anything upfront. The accumulated funding fees are paid to us from your settlement.
- No risk. Unlike a loan that must be paid back, a lawsuit advance provider doesn’t get paid if there is no settlement. CBC Settlement Funding assumes all the risk and will receive money when your case is settled.
- They’re not for legal expenses. Most legal expenses are paid on a contingency basis once your settlement has been made. Use your pre-settlement funding money to pay household bills, credit card balances and other expenses. For clients who are facing foreclosure, the advance can help them remain in their home.
- No case involvement. We do not get involved in your case. We only verify with your lawyer the details of your case to determine if you’re a candidate for pre-settlement funding.
- No credit checks. As opposed to banks, CBC Settlement Funding does not check your credit as part of our approval process.
If you are involved in a lawsuit and are considering pre-settlement funding to help you financially until your case is settled, give CBC Settlement Funding a call at 877-386-3377. We can provide you with a no-obligation quote and help you to determine whether pre-settlement funding is right for you.
What If I Don’t Win My Lawsuit?
Unlike a payday loan or other types of secured loans or cash advances, a litigation cash advance is a “non-recourse” arrangement. This means that when CBC Settlement Funding provides you with cash for settlement payments against a pending court award, our company is assuming the risk that the judge may decide in favor of the defendant (the party against whom you brought suit). If you do not win your lawsuit, you pay nothing, and CBC absorbs this as a loss.
How Do I Pay Back The Money From A Settlement Cash Advance?
If you have applied for and received a settlement cash advance from CBC Settlement Funding, you will be repaying this advance from your court award or settlement, along with an additional fee – in the event that your lawsuit is successful.