Every year, thousands of hardworking people across the country get seriously hurt at their jobs. In 2021 alone, over 2.2 million injured workers had to go to the hospital because of human error, according to the Bureau of Labor Statistics. The physical pain of the injury is bad enough, but the stress of jumping through the legal hoops to get compensated for your losses and the endless waiting can make things even worse.
Here at Pinnacle Legal Funding, we offer cash advances or workers’ compensation lawsuit loans to workers who are waiting for their claims to settle. It is our way to make sure you do not have to settle for less than what you are rightfully entitled to just because your bills are piling up or the insurer is pressuring you. To get your workers’ compensation settlement loan or pre-settlement funding in your bank account quickly, call us at 1-877-4-FUNDING or reach out to us online.
What is a Workers’ Compensation Settlement Loan?
Workers’ compensation settlement funding, also known as workers’ comp settlement advance, workers’ comp lawsuit loans, or a pre-settlement loan, is money you can get before your legal case is settled out-of-court or in court. When people get injured at work and are unable to earn money like before, they apply for a settlement loan to pay their bills while their lawyer negotiates the workers’ compensation cases with their employer’s insurance company.
There are two ways workers’ comp settlement loans, lawsuit loans, or pre-settlement funding are different from traditional loans. First, this is a non-recourse loan, which means you don’t have to pay it back unless your attorney wins a financial settlement or verdict on your behalf (sometimes requiring excessive litigation), or you receive your deserved workers’ compensation settlements from the insurance company. So, there is absolutely no risk for the injured workers or their families. You don’t have to worry about big monthly repayments in case you lose the workers’ comp claim.
Secondly, your financial history does not matter when seeking approval for pre-settlement funding for workers’ compensation claims after a workplace accident. Traditional lenders need to check your credit score to determine if you will be able to pay back the loan. However, pre-settlement funding providers for a workers’ compensation case, such as Pinnacle Legal Funding, don’t do this because we receive repayment of the legal funding out of your future workers’ comp claim settlement.
You can use this cash advance lawsuit loan from legal funding or settlement funding for anything, be it paying for your child’s school, making car payments, buying groceries, paying credit card bills, utility bills, rent or mortgage, investing, workplace injury medical expenses (medical treatment), or even just enjoying a day out to take your mind off things. We can approve a workers’ compensation loans cash advance for several types of workers across the US, including:
- Construction workers
- Factory workers
- Nurses and healthcare workers
- Truck and delivery drivers
- Warehouse workers
- Retail employees
- Janitors and cleaning staff
- Office workers (administrative staff, IT professionals, etc.)
- Agriculture workers (farmers, farmhands, etc.)
- Landscapers and gardeners
- Mechanics and automotive technicians
- Tradespeople (electricians, plumbers, painters, roofers, welders, carpenters)
- Flight attendants and airline ground staff
- Federal, state, and local government employees
Who is Eligible for Workers’ Compensation Lawsuit Loans?
In a workers’ comp case, you will need to meet the following criteria to be eligible for a lawsuit loan cash advance or settlement loans:
- You must have filed a workers’ compensation claim (workers’ compensation lawsuits) for an injury or illness that happened because of your job or while you were working.
- You must be represented by a workers’ comp claims attorney.
- You are in a state that allows personal injury lawsuit loans or workers’ comp loans.
A contingent fee attorney is important because their presence assures the legal funding companies that your workers’ compensation case is solid and has a reasonable chance of winning. Once you submit the loan application, your pre-settlement loan provider will quickly review the evidence your lawyer has, the circumstances of your accident, and the extent of your injuries and medical treatment required. The stronger your workers’ compensation claim is, the higher your chance to get the loan.
It should be noted that in some workers’ comp cases, your employer needs to have workers’ compensation benefits insurance for you to be eligible for workers’ compensation loans or pre-settlement funding.
How Much Can I Get?
When you are seeking a workers’ comp lawsuit loan (or workers’ comp loan) from a funding company for on the job injuries after hiring a workers’ compensation attorney, the amount you can get to meet medical costs or as financial support to address any other financial hardship can vary in each funding agreement. It could be anything from $5,000 to $500,000, depending on how much potential settlement money you are expected to receive.
In addition to factors like how likely you are to win and how much you might get, at Pinnacle Legal Funding we also consider how much non-recourse financial assistance you need right now to keep things going. The idea is to give you a part of your future settlement money now by way of workers’ compensation lawsuit funding at competitive interest rates, so you can pay your bills and take care of other needs. But we also try to ensure you will still have a good amount of money left for financial relief and basic living expenses when your workers’ compensation accident case settles, even after you pay back the settlement loans for workers.
Can I Get a Loan to Pay Off a Settlement?
Generally speaking, an injured worker or injured employees file workers’ compensation claims through their employer’s workers’ comp insurance. This insurance covers medical bills, lost wages, and other costs related to the workplace injury, without any need for a settlement between the worker and the employer.
However, in some rare cases, there might be a settlement involved, where the worker and the employer agree on a specific amount of money to be paid to the worker to cover additional costs or damages. In such situations, if the employer is unable to pay the agreed amount all at once, they might have to take out a conventional loan to fulfill the obligation.
This does not fall under workers’ comp settlement loans for workers, but is more of a “personal loan,” so you will have to get it through a bank or other traditional financial institution. Please note that this is not the standard procedure and each situation may vary. Remember that it is your insurance that handles the payments, and there is no settlement to be paid off. If you are still considering a loan to pay off a worker, it would be a serious matter so you must consult with skilled attorneys.
Can I Get a Loan from My Workers’ Comp Settlement in Pennsylvania?
Yes, you can. Pennsylvania is one of the states where it is legal for accident victims to get cash assistance against a future legal settlement from funding companies. Pinnacle Legal Funding offers Workers’ Comp pre-settlement loans or compensation funding for legal claim without credit check in the following 39 states:
Alabama, Alaska, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Texas, Utah, Vermont, Virginia, Washington, Wisconsin, and Wyoming.
Frequently Asked Questions on Workers’ Comp Pre-Settlement Loans
What can I use the funds for?
You can use the funds from a workers’ compensation lawsuit loan for various purposes, including covering medical bills, rent or mortgage payments, groceries, utilities, and other living expenses. Some people also use the funds for legal fees or to avoid settling their case for a lower amount due to financial pressure.
Is credit or employment history considered for approval?
Unlike traditional loans, workers’ compensation lawsuit loans are typically not based on your credit score or employment history. Approval is primarily based on the strength of your workers’ compensation claim.
How long does it take to get approved?
The approval process for a workers’ compensation lawsuit loan can be relatively quick, often taking a few hours to a few days. It depends on your case documentation and the complexity of your claim.
What happens if I lose my case?
If you lose your workers’ compensation case, you generally do not have to repay the lawsuit loan. It is considered a non-recourse advance, meaning you only repay it if you win your case and receive a settlement.
How much can I borrow?
The amount you can borrow through a workers’ compensation lawsuit loan depends on the estimated value of your settlement. Funding companies usually offer a percentage of that estimated value, which can vary but is often around 10-20%.
Can I get a lawsuit loan if I’ve already received a part of my workers’ compensation benefits?
Yes, you can still apply for a lawsuit loan even if you have received some of your workers’ compensation benefits. These loans help cover expenses during the legal process, even if you have already received some compensation.
Are workers’ compensation lawsuit loans taxable?
Generally, workers’ compensation lawsuit loans are not considered taxable income because they are considered advances on future settlements. However, you should consult with a tax professional for guidance specific to your situation.
What happens if my settlement is less than the amount of the loan?
If your settlement is less than the amount of the lawsuit loan, you will typically only need to repay the loan amount up to the settlement amount. The funding company will not seek additional repayment beyond your settlement.
Apply Today for a Workers’ Compensation Lawsuit Loan and Receive Funds Fast
Whether you have suffered strains, sprains, burns, fractures, repetitive stress injuries, asthma, cancer, PTSD, or serious injuries such as a traumatic brain injury, spinal cord injury, or an amputation injury during the course of your employment, the workers’ comp loan application process at Pinnacle Legal Funding is designed to help you. The form is available on our website for free and there are no application charges or hidden fees.
Simply complete your application, give us 24-48 hours to review your case, and then another few hours to transfer the money into your bank account. We will contact your workers’ comp case attorney to understand your case details, so make sure you talk to them before filling out the form. The quicker they are able to cooperate with us, the faster our underwriters will be able to approve your workers’ comp pre-settlement application. No credit check, income verification, or collateral is required.
If you want to speak with a representative from our workers’ comp settlement loan team first, feel free to call us at 1-877-4-FUNDING or email us at info@pinnaclelegalfunding.com.
