According to the Bureau of Justice Statistics, the typical auto accident lawsuit takes roughly a year to settle. In more complex or disputed cases, the timeline can stretch even longer. During this period, accident survivors often face mounting medical bills, living expenses, and other costs—all while they may be unable to work due to injuries.
In New York City, pre-settlement funding and lawsuit loans provide a crucial lifeline for accident victims and their families, giving them the financial leverage needed to stand up against large corporations with substantial resources.
How Does Pre-Settlement Funding Work?
Pre-settlement funding—often known as a lawsuit loan or legal funding—is a cash advance that plaintiffs receive while their case is pending. The major benefit is that you only repay the advance when your case settles, meaning there’s no repayment obligation if you lose.
The Lawsuit Information Center reports that the average personal injury award in New York exceeds $287,000 in compensatory damages. While that number seems high, it only applies to the small percentage of cases that go to trial. Most personal injury claims settle out of court or during pre-trial negotiations.
For more complex cases with potentially high settlements, litigation can drag on for years. Without pre-settlement funding, victims risk draining their savings while covering medical costs, rent or mortgage payments, and daily expenses.
The Advantage of Pre-Settlement Funding
Insurance companies and even some attorneys may intentionally delay settlements to exhaust a plaintiff’s financial resources—forcing a rushed, low settlement. This tactic leaves victims at a severe disadvantage and can even push them toward bankruptcy or foreclosure.
Pre-settlement funding eases this financial pressure by providing immediate funds to cover essential expenses. Although these advances come with interest, the potential increase in your eventual settlement often outweighs the cost.
How It Can Improve Your Lawsuit Outcome
Extended Time for Case Preparation:
With pre-settlement funding from ClaimCash Funding, you and your attorney gain additional time to gather solid evidence and secure witness statements. This extra time allows you to wait until you reach maximum medical improvement (MMI) and build a stronger case, which can lead to a higher settlement.
Reduced Financial Stress:
With cash in hand, you can avoid hasty settlements. The financial breathing room enables you to evaluate offers carefully and make decisions based on your case’s true value, rather than immediate financial need.
Enhanced Negotiation Leverage:
When the opposing party knows you have a financial cushion, they are more likely to present a fairer offer. Negotiating from a position of strength can help secure a settlement that reflects the full value of your claim.
How Pre-Settlement Funds Are Typically Used
According to the American Legal Finance Association, over 60% of pre-settlement funds are used to prevent eviction or foreclosure. However, these funds can also cover a wide range of expenses, such as:
- Medical Expenses: Paying for treatments, therapies, and medications.
- Living Expenses: Covering rent or mortgage payments, utilities, groceries, and transportation.
- Other Essential Costs: Managing everyday bills to avoid incurring additional debt.
Apply for Pre-Settlement Funding Today
If you’re facing a prolonged personal injury claim or lawsuit and are worried about covering your expenses, pre-settlement funding from ClaimCash Funding can be the financial bridge you need. With a fast approval process—often within 24 hours—you can secure a cash advance that allows you to focus on recovery and legal strategy without financial distractions.
Contact ClaimCash Funding now to explore risk-free legal funding options that empower you to take control of your financial future.
