Pre-settlement funding can provide financial relief for individuals facing financial hardships during lengthy legal proceedings. Also known as legal funding or a lawsuit loan, this is a financial option available to individuals involved in a lawsuit who need immediate funds before their case reaches a settlement or conclusion.
The Steps Involved in Pre-Settlement Funding
Step #1 Lawsuit Involvement
If you have been injured by another person’s negligence, you have the right to file a personal injury lawsuit against them to be compensated for your losses. You must be part of an ongoing legal case, such as a personal injury lawsuit, car accident claim, medical malpractice claim, or similar legal proceedings.
While it is legal and possible to pursue a claim without an attorney representing you, it is essential to have legal representation in order to obtain pre-settlement funding. If you don’t yet have one, this would be the stage in which you acquire a lawyer. The first thing you will need to do is consult with an attorney who practices personal injury law. They will consider the details of your case and determine if you have a viable suit. If the lawyer feels you have a case that can be won, you can hire them to represent you throughout the lawsuit. Your attorney can then gather evidence to be presented in your case.
Step #2 Financial Need
The lawsuit process — from your initial consultation with an attorney to the closing of your case when you secure a judgment and are awarded financial compensation — can take several months or possibly years. If you sustain severe injuries and are unable to work, this can place you and your family under significant financial strain.
Often, individuals involved in lawsuits face financial strain due to medical bills, living expenses, or other costs while waiting for the case to be resolved. These expenses will continue to add up while you wait for your final compensation. Pre-settlement funding provides a way to access funds before the case settles.
Step #3 Lawsuit Loan Application Process
When you realize you have a financial need for your money but your settlement is still weeks, months, or even years from reaching your bank account, you can turn to Pinnacle Legal Funding. You can apply for pre-settlement funding through our funding company, one that specializes in these types of financial products. Our company evaluates your case’s merits, potential settlement value, and the likelihood of success. We consider factors such as the strength of your case, liability, and damages.
Step #4 Legal Funding Approval
If approved, you receive a cash advance. The funds you will receive through Pinnacle Legal Funding is not a traditional loan but rather an advance against the expected settlement or verdict of your case. The funding amount varies based on the estimated value of your case.
Step #5 Repayment
Typically, repayment of the lawsuit loan advance, along with fees and interest, occurs from the settlement or judgment proceeds. If you don’t win the case or reach a settlement, you will not need to repay the funding.
Is Pre-Settlement Funding Legal in Tennessee?
Is it legal to get a lawsuit loan? Absolutely! Pre-settlement funding is legal in Tennessee.
Tennessee’s legislation, particularly the Tennessee Litigation Financing Consumer Protection Act, regulates lawsuit funding in the state. This regulation necessitates that lawsuit loan companies like Pinnacle Legal Funding be registered with the state before providing services to Tennessee residents.
Tennessee law imposes a cap on rates and fees that funding companies can charge – no more than $360 per $1,000 advanced annually for up to three years. This essentially means there is a maximum chargeable interest rate of 36% per year. The law also mandates certain disclosures, including the client’s right to cancellation and the funding company’s non-interference with the lawsuit. When you get your pre-settlement funding through Pinnacle Legal Funding, you can feel at ease that everything you’re doing is legal and above board.
What Can Pre-Settlement Funding be Spent On?
Pre-settlement funding is typically flexible in terms of what you can spend it on, but it’s intended to cover immediate financial needs while your lawsuit is pending. Here are common expenses that pre-settlement funding can help with:
Medical Expenses: Pre-settlement funding is designed to cover your medical bills, treatments, therapies, or any costs related to your injury or condition.
Living Expenses: That being said, it’s not all you can spend your funds on. Paying for rent, mortgage, utilities, groceries, and other daily living costs that might become difficult to manage due to the ongoing legal process. You can also use the funds you receive on basic living expenses.
Legal Fees: It can be used in assisting with attorney fees, court costs, or any expenses directly related to your lawsuit.
Debt Repayment: Settling outstanding debts or loans, especially if your injury or situation has impacted your ability to meet financial obligations, is another avenue to use your funds.
Other Necessary Costs: Your options are very open as to what you can spend your pre-settlement funding on. You could also use this money on vehicle repairs (in case of an accident), childcare expenses, or any other expenses arising due to the circumstances of your case.
Pre-settlement funding from Pinnacle Legal Funding provides flexibility in how you can use the funds. Of course, it’s advisable to use it judiciously and prioritize essential expenses. Be aware that these funds will need to be repaid from your settlement or verdict, if you win. For this reason, it’s wise to only use what’s necessary to cover immediate needs during this time.
Contact Our Team to Learn More About Tennessee Pre-Settlement Funding
When you are injured due to someone else’s negligence, you may be left with a financial burden resulting from mounting medical expenses and lost wages. Although you may have hired an attorney to seek justice and compensation for your losses, you will find that the wheels of justice turn slowly and your case may take several months or even years to resolve. With Pinnacle Legal Funding, you will get a cash advance on your future lawsuit settlement, with no credit check, no upfront fees, and no risk.
We are here so injured individuals like yourself can secure the funds needed to cope with expenses while they wait for a favorable outcome of their legal dispute. We encourage you to contact us with any additional questions or to begin your funding approval process.