If you were seriously injured due to another party’s negligence and have a lawsuit in progress, it is likely that you are dealing with financial strains while awaiting the outcome of settlement negotiations. This is where Alaska pre-settlement funding can help.
While pre-settlement funding is sometimes referred to as a lawsuit loan, these payments are not actual loans. Instead, they are funds disbursed in anticipation of a future lawsuit settlement.
Think of pre-settlement funding in Alaska as similar to a cash advance on your settlement.
How Pre-Settlement Funding in Alaska Works
Pre-settlement funding is non-recourse. While the funds are distributed based on the likelihood of your receiving a settlement or judgment in your personal injury case, if such a settlement or judgment does not occur, you are not liable for repayment.
Once a settlement amount is determined or you are awarded compensation after a trial, the pre-settlement funding is repaid out of those funds.
Unlike bank loans, pre-settlement funding does not involve income verification, employment history, or credit checks. Your potential settlement serves as collateral for the funding.
While most people use pre-settlement funds to pay down debts or expenses incurred due to their injury and subsequent inability to work, there are no restrictions on what you can do with your pre-settlement funding.
Why Consider Pre-Settlement Funding in Alaska?
For plaintiffs engaged in slow-moving litigation in Alaska, the advantages of pre-settlement funding include the following:
- Alleviate financial burdens: Expenses add up fast, especially for plaintiffs who may have been out of work due to serious injuries. Pre-settlement funding gives you money to pay for your mortgage, car payments, insurance, tuition, medical bills, and other expenses while the legal process runs its course.
- Less pressure: Financial hardships often place plaintiffs in a position where they feel they need to settle quickly to pay their bills. A rushed settlement often means less compensation than you might have received if you gave your case more time to settle the right way.
- More time to pursue a fair settlement: Pre-settlement funding helps level the economic playing field against deep-pocketed defendants and insurance companies. When plaintiffs and their attorneys have adequate resources, they are better equipped to pursue a claim to its full potential.
- No risk: Remember, pre-settlement funding is like a cash advance on an anticipated settlement or verdict in a personal injury case. The future settlement serves as collateral. If you do not receive a settlement or a court verdict is unfavorable, you do not have to repay the money. With pre-settlement funding, the lender assumes all the risks.
Pre-settlement funding isn’t right for everyone, but for many in Anchorage, Fairbanks, Juneau, and throughout Alaska, it provides a financial lifeline when plaintiffs need it the most.
Steps to Apply for Pre-Settlement Funding
The process for applying for pre-settlement funding in Alaska is as follows:
Apply for Pre-settlement Funding
The application process for pre-settlement funding can take less than two minutes. The application is free, and there are no hidden fees or charges. One of our team members will promptly assist you after submitting your application. Always provide adequate contact information for your attorney or law firm handling your case.
Wait for the Lawsuit Assessment by the Underwriting Team
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.
Review and Accept Funding Proposal
If approved, we will send you and your attorney documentation outlining the terms of your pre-settlement lawsuit advance. We encourage you to review this information carefully to ensure you’re fully aware of your rights and responsibilities when you accept pre-settlement funding. If you accept the proposal, funds will be dispersed via check or direct transfer in as little as one day from the time you sign your agreement.
At Mustang Litigation Funding, we believe transparency is essential for building trust and loyalty with individuals, investment groups, and legal firms.
Alaska Pre-Settlement Funding Laws
In Alaska, you must have an attorney representing you in your case to qualify for a pre-settlement loan. Your attorney must agree to discuss the details of your case with the lender. The lender makes a decision whether to approve pre-settlement funding based on the circumstances of your claim and the likelihood of your receiving a significant settlement or judgment.
You must also submit documentation pertaining to your case, such as medical records.
Personal Injury Pre-Settlement Funding in Alaska
While various types of cases are eligible for pre-settlement funding, personal injury cases are the most common.
Statute of Limitations
Alaska’s statute of limitations for filing a personal injury lawsuit is typically two years from the date of the accident. For medical malpractice, the statute of limitations is three years.
Once your lawsuit is filed, it can take a considerable amount of time to resolve. Meanwhile, you may struggle to pay bills for basic necessities.
Modified Comparative Negligence
Alaska is a modified comparative negligence jurisdiction regarding compensation. If a party is more than 50 percent responsible for the accident, they cannot receive compensation. However, if it is determined that they bear some fault for the accident, any award is reduced by that percentage of fault. For instance, if a jury decides that you were 20 percent at fault, a $10,000 award is reduced to $8,000.
Caps on Damages
Alaska imposes limits on certain damages. In medical malpractice cases, non-economic damages such as pain and suffering are limited to $250,000. The limit rises to $400,000 in cases of wrongful death or severe, permanent physical impairment that is more than 70 percent disabling.
Contact Us
For more information about pre-settlement funding in Alaska and whether you are eligible, contact Mustang Funding today. We serve Anchorage, Fairbanks, Juneau, Sitka, and other areas of this vast state.
