If you suffered a serious personal injury because of another party’s negligence, it is likely you filed a lawsuit against the defendant. The accident took a lot out of you physically, psychologically, and financially. Most personal injury cases are settled, but the process can take a long time. You may have to wait years for the settlement. Meanwhile, as you recuperate from your injuries, you need money to pay for your basic living expenses. Pre-settlement funding in Alabama can help.
While pre-settlement funding is sometimes referred to as a lawsuit loan, that is not an accurate characterization. These are not loans but disbursements of money in anticipation of a future lawsuit settlement. You are given money now and will pay it back after the settlement. In essence, it is a cash advance.
How Pre-Settlement Funding Works in Alabama
With pre-settlement funding in Mobile, Huntsville, or anywhere in Alabama, there is no monthly payment due during the period in which your case is pending. There is also no need for collateral. Once you agree to a settlement or a verdict is reached in your case, your attorney will pay back the pre-settlement funding out of the settlement or award.
If your pre-settlement funding application is approved, you should receive the money quickly, deposited directly into your bank account. Your attorney may also benefit indirectly, as they now have additional time to put together the strongest case possible on your behalf.
The defendant’s insurance company has less reason to drag out the case, hoping you will agree to a lower settlement out of financial desperation.
Keep in mind that litigation funding assistance is non-recourse. That means if you lose your case, you do not have to pay the money back. That is a risk the lender takes. For the plaintiff, it’s a win-win situation.
Alabama Pre-Settlement Funding Laws
In Alabama, pre-settlement funding falls under the Alabama Small Loan Act, § 5-18-1. Only those companies licensed to provide lawsuit funding may offer pre-settlement funding.
State law does not restrict how clients spend their pre-settlement funding. You can use the money for current living expenses or to pay down debt.
Personal Injury Pre-Settlement Funding in Alabama
To qualify for personal injury pre-settlement funding in Alabama, you must have an active personal injury claim with an attorney. Your lawyer must agree to work with Mustang Funding.
Statute of Limitations
In Alabama, the statute of limitations for filing a personal injury lawsuit is generally two years from the date of the injury. Failure to file a lawsuit within this timeframe means your claim cannot go forward. It is critical to file your personal injury lawsuit within the statute of limitations.
Contributory Negligence
Alabama law operates under a contributory negligence standard. If you were even partly responsible for the accident, you may not recover damages under the law. This strict standard can affect your ability to receive compensation. That is why we must work with your lawyer. They must offer proof that, in your case, the defendant was entirely at fault.
How Does Pre-settlement Funding Compare with Other Funding Options?
As noted, Mustang Funding in Alabama offers plaintiffs a non-recourse cash advance against their anticipated settlement, providing immediate financial relief during litigation. This can be particularly advantageous compared to other funding options, which may carry significant drawbacks.
For example, traditional bank or credit union loans and credit card cash advances often require a strong credit history and impose monthly repayment obligations, regardless of the lawsuit’s outcome. These methods can lead to increased debt and financial strain, especially if the litigation process is prolonged.
Borrowing from friends or family might offer more lenient terms, but it could strain personal relationships if repayment is delayed or the case does not settle favorably. Home equity loans or lines of credit using one’s property as collateral can be risky if the outcome is unfavorable or repayment becomes challenging.
In contrast, pre-settlement funding does not require credit checks, monthly payments, or collateral; repayment is contingent upon a successful settlement or court verdict.
Cases We Fund
We offer litigation settlements for a broad variety of cases, offering you the capital and flexibility you need. Below are just some of the types of claims we provide pre-settlement funding for. If you have questions about whether your claim is eligible, don’t hesitate to contact us. We’d love to see if we can help.
- Slips and falls
- Pharmaceutical injuries
- Civil sexual assault and battery
- Workplace injuries
If another party’s negligence caused you to suffer serious injuries and economic hardship, we know that money is tight. Get the influx of cash you need to tide things over until the settlement is finalized. Mustang provides legal funding for active personal injury claims to plaintiffs represented by counsel.
We will carefully review your case and assess whether you qualify for funding in Alabama.
Application Process for Alabama Residents
The funding process is straightforward. Assuming you’ve met the threshold requirement of retaining legal counsel and have a pending legal action filed in court, the first step toward receiving a cash advance on your future settlement is to apply.
Our application process for pre-settlement funding is simple, with no hidden fees, and designed to get plaintiffs the funds they need quickly. To begin, submit an application online, providing information about your case, financial needs, and complete contact information for your attorney or law firm.
At Mustang Funding, our internal team evaluates the strength of your claim and determines an appropriate monetary figure. After consulting with your attorney, we will base our final decision on whether we believe you will win compensation and how much you are likely to receive.
If you have provided complete contact information for your attorney, we could have an answer for you in as little as 24 hours. If you’re approved for funding, we will send you a funding agreement. Please review it with your attorney to ensure the terms are clear.
Frequently Asked Questions About Pre-Settlement Funding in Alabama
Do I Need a Strong Credit Score to Apply?
No, pre-settlement funding decisions are based on the strength of your case, not your credit history, and applying will not affect your credit score.
How Much Funding Can I Receive?
The amount depends on the expected value of your settlement and the specifics of your case. At Mustang Funding, we offer funding amounts ranging from $500 to $100,000, typically without any restrictions on how the cash is used.
How Long Does the Process Take?
Once your application is submitted, you can typically receive funding within 1–3 business days after approval.
Can I Apply for Additional Funding Later?
Yes, depending on your case’s progress and additional financial needs, you may qualify for additional funding.
Learn More About Pre-Settlement Funding in Alabama
We can discuss how pre-settlement funding can help you in Montgomery, Birmingham, and throughout Alabama, and other states where pre-settlement funding is legally permitted. Contact Mustang Funding now for more information. Our application process is easy and straightforward, and in some cases, you can receive funding within 24 hours of approval.
