What is Pre-Settlement Funding Worth?July 11, 2013
Pre-settlement funding is more than just an amount of money received from the sale of future legal settlements. It has an incredible amount of worth to plaintiffs and their families who are struggling to get by as they wait for their cases to be settled. Opponents would have consumers believe that there is no value, but consider the alternatives: ruined credit, eviction, foreclosure, and more.
How Pre-Settlement Funding Saves Credit Scores
The single largest benefit for plaintiffs is being able to save their credit scores. In terms of costs, experts have calculated the lifetime cost of bad credit to be upwards of $200,000. This includes interest fees, higher loan rates (if loans are approved at all), and the cost of using sub-prime financing such as high-fee credit cards, check cashing facilities, and rent-to-own stores.
Poor credit scores can also cost plaintiffs their jobs; about half of employers do pull prospective employees’ credit reports. Prospects with less-than-stellar credit often find themselves taking jobs for smaller salaries.
Peace of Mind is Priceless
Pre-settlement funding also grants plaintiffs peace of mind. Since many find themselves unable to work after their injuries, these plaintiffs do not have income streams that can sustain them and their families. Pre-Settlement funding allows plaintiffs to meet their monthly expenses, which means they can:
1. Save their homes. Whether they’re renting or own a home, the bank or landlord won’t wait until the settlement is finalized. Lawsuit funding allows plaintiffs to make their monthly payments, allowing them to remain in their homes and avoid eviction or foreclosure proceedings, which can damage their credit.
2. Put food on the table. The rising cost of groceries means that many families are already pinched. When the breadwinner is incapacitated due to injury, finding money for even the basics can be a challenge. Pre-settlement funding provides the necessary money to cover groceries.
3. Cover medical expenses. During a pending lawsuit, medical expenses still need to be paid, particularly expenses not related to the injury. With lawsuit funding, plaintiffs can get the care they need for themselves and their families.
4. Get around. Getting to doctor’s appointments, meetings with the lawyer, the grocery store, the children’s school all requires some sort of transportation. With the average cost of gas having risen 10 percent this year, filling up even the tank of a compact can run upwards of $40, no small amount on a tight budget.
5. Pay tuition. As if it’s not awful enough for a parent to be injured, not being able to afford college can be heartbreaking for both the injured plaintiff and her child. Pre-settlement funding lets the college fund be used for college and provides money to cover additional tuition payments. If the plaintiff himself is in college, this allows him to continue with his course of study uninterrupted.
6. Stay current on child support. Family courts do not look favorably on missed child support payments. In addition to having any wages garnished, courts can also attach tax returns and issue warrants for arrest.
7. Keep the lights on. Electricity, gas, and water are all essential, and like mortgage and rent payments need to be current, and the charges for reconnection can start at $25 per utility. Pre-settlement funding provides the cash to, quite literally, keep the lights on and maintain a normal existence while waiting for a settlement.
Keeping Ahead of the Unexpected
Pre-settlement funding does more than just pay for routine expenses. In the event of emergencies, it can also cover costs such as:
1. Unexpected criminal matters. If something happens, whether it’s the plaintiff or a family member, litigation funding provides the cash to pay for attorneys, bail bondsmen, or other needs.
2. Burial expenses. If the plaintiff or a loved one passes, either as a result of the accident or another emergency, the average cost of a funeral is over $6,500.
Opponents of the pre-settlement funding industry often don’t realize what a lifeline litigation funding is. It provides plaintiffs with the money to stay on top of their expenses, preserving their credit histories and allowing them to save substantial amounts of money.
At USClaims, we offer pre-settlement funding, if a case is qualified for pre-settlement funding then we would purchase a portion of the proceeds of the anticipated court judgment or settlement for some cash now. USClaims only gets paid if a case is won or has reached a settlement! Apply now or call us today at 1-877-USCLAIMS to learn more.