A serious personal injury wreaks havoc with your life. Besides the need for ongoing medical treatment and recuperation, accident victims are often devastated financially. If your injury resulted from another party’s negligence or recklessness and you have an ongoing personal injury lawsuit, pre-settlement funding in California can help you weather this difficult time and pay your bills.
Even in the best of circumstances, it can take months for a plaintiff to receive money from a settlement. It is not unusual for a settlement to take years, and the same holds true if your case is heard in court.
Although pre-settlement funding is sometimes referred to as a lawsuit loan, that is a misnomer. It is not a loan, but a cash advance against your settlement or verdict. The money is repaid by your lawyer when you receive your settlement or verdict. Benefits of Choosing Pre-Settlement Funding
At Mustang Funding, we offer funding amounts ranging from $500 to $100,000, typically without any restrictions on how the cash is used. For example, you may use it for deductibles and copays for surgeries and other medical procedures. You might also seek treatment from a provider outside your health insurance network and need the funds to pay out-of-pocket costs. Many plaintiffs also use the funding to pay their children’s tuition, mortgage, credit card payments, or daily living expenses.
Knowing your immediate financial needs are covered also gives you and your attorney an advantage in negotiations, reducing the pressure to settle your case quickly. This way, you are better positioned to pursue a fair settlement, taking the time to reach an outcome that fully reflects your damages and losses.
Other benefits include the following:
- Is risk-free even if you lose your case: If you don’t get a court award or settlement, you don’t have to pay anything back. That is why we refer to pre-settlement funding as non-recourse financing. We absorb all the risk.
- Does not affect your credit in any way: Good credit is not a requirement for pre-settlement funding, and applying for a lawsuit advance will not impact your credit.
- Does not require monthly payments: Unlike credit cards and personal loans, litigation advances do not have monthly payments. Instead, these funds are only repaid once your case is completed.
How Pre-Settlement Funding Works in California
To qualify for pre-settlement funding in Los Angeles, San Diego, San Francisco, or elsewhere in California, your attorney must agree to work with us. We discuss your lawsuit with your lawyer and make a funding decision based on the strength of your case.
In California and other states where pre-settlement funding is legal, you can receive money before your case settles. The money is non-recourse, which means you don’t have to repay it if you lose. Instead, the company that provided you with the funds assumes the risk. As a result, there is no risk to you as the plaintiff.
Keep in mind that the statute of limitations for filing a personal injury lawsuit in California is generally two years from the accident date. Failure to file a lawsuit by that deadline means your case cannot go forward.
When it comes to personal injury cases, California operates under the pure comparative negligence standard. That means the amount of compensation you may receive in a personal injury lawsuit is affected by the percentage of fault a judge or jury attributes to you.
For instance, if you are found to be 20 percent at fault for the accident, your damages are reduced by 20 percent. These factors influence pre-settlement funding decisions.
Application Process for California Residents
It is important to remember that pre-settlement funding is only available to those who have retained an attorney and have a case already underway.
At Mustang Funding, the process is straightforward:
- Apply for pre-settlement funding: 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: When you receive your proposal, review the details with your attorney. Your attorney is intimately familiar with the details and value of your case, so they are best equipped to provide counsel as to whether you should accept the funds and how much to accept. If you accept the proposal, funds will be dispersed via check or direct transfer.
Mustang Funding helps level the economic playing field so you can hold out until justice is served. We have streamlined the process with a simple, one-page application you can complete in just a few minutes. Submit your application now to get started. Got questions? Our team is eager to provide the answers you need.
California Pre-Settlement Funding Laws
In California, you must have an attorney representing you to qualify for litigation funding. That lawyer must be working on a contingency fee basis.
Other state laws regarding pre-settlement funding include:
- The accident must have occurred in California.
- Your insurance must be current.
- Your injuries must prove significant.
In the case of a motor vehicle accident, your auto insurance must have been up to date at the time of the collision. A lack of insurance may disqualify you from receiving compensation. That is true even if you were not at fault.
Personal Injury Pre-Settlement Funding in California
Although the majority of personal injury pre-settlement funding in California deals with motor vehicle accidents, you may also qualify for pre-settlement funding for other types of serious personal injury. These include:
- Premises liability (slip and fall)
- Medical malpractice
- Dog bites
Frequently Asked Questions About Pre-Settlement Funding in California
How Much Pre-Settlement Funding Can I Receive for My California Lawsuit?
At Mustang Funding, the amount of pre-settlement funding we can offer depends on the specifics of your case. We will work with your attorney to assess the strength of your lawsuit and estimate the likely outcome. Based on that information, we’ll determine a funding amount that aligns with the value of your case.
Are California pre-settlement loans safe?
Pre-settlement funding is not a traditional loan, and as such, it doesn’t carry the same risks. Our funding is non-recourse, meaning you do not have to repay it if you lose your case. At Mustang Funding, we ensure you fully understand the terms of your funding before proceeding so you can move forward with peace of mind.
Are Lawsuit Loans Taxable in California?
Pre-settlement funding in California is generally not taxable because it is considered an advance on your potential settlement, not income. Since the funds are tied to the anticipated settlement of a legal claim, the IRS does not treat this money as earned income.
Learn More About Pre-Settlement Funding in California
If you would like to know more about how pre-settlement financing can help you in San Jose, Fresno, Sacramento, or elsewhere in California, contact Mustang Funding today. Our application is simple and straightforward. In most cases, you can receive your funding within 24 hours.
