When another party causes you to suffer a serious personal injury, you might eventually receive compensation through the defendant’s insurance company or after a courtroom verdict. Meanwhile, you may not be able to work and need money to pay your basic living expenses. The need for funds could cause you to consider settling for less money than you deserve for your injuries. That is where pre-settlement funding in Delaware comes in.
While pre-settlement funding is often referred to as a lawsuit loan, it is not a loan per se. Instead, it is a monetary disbursement in anticipation of a later settlement, comparable to a cash advance. The money is repaid when you receive your settlement or award.
How Pre-Settlement Funding in Delaware Works
Most plaintiffs can expect to qualify for between 10 and 15 percent of their conservatively estimated gross settlement amount in pre-settlement funding in Delaware.
Pre-settlement funding in Delaware is non-recourse. Based on your particular case, the lender takes the risk that you receive the anticipated settlement. If you do not receive compensation, the funding does not require repayment.
While most recipients use their pre-settlement funds to pay bills, there are no restrictions on what you can do with the money.
Because pre-settlement funding is not a loan, there is no credit check, income verification, or employment history needed. If you turned to a bank for a loan to stay afloat until receiving the settlement, all of those conditions would apply.
Delaware Pre-Settlement Funding Laws
There are no state laws relating specifically to pre-settlement funding in Delaware. You must have a pending personal injury lawsuit filed by an attorney. Your attorney must agree to work with the lender and provide relevant information and documentation about your case for the lender’s review.
After conducting a careful examination of your case, the lender makes a decision regarding whether to approve your pre-settlement funding in Delaware application. That decision is made based on the strength of the case and the estimated amount of your settlement.
In most cases, you will receive your funding within 24 to 48 hours after your application is approved.
Personal Injury Pre-Settlement Funding in Delaware
Statute of Limitations
The statute of limitations for filing a personal injury lawsuit in Delaware is generally two years from the date of the accident. Failure to file your lawsuit within that timeframe means your case cannot go forward.
Modified Comparative Negligence.
When it comes to liability in personal injury cases, Delaware uses the standard of modified comparative negligence. That means that as long as you were less than 51 percent responsible for the accident, you can still receive compensation. However, a judge or jury reduces your amount of compensation by the percentage of fault.
For instance, if it is determined that you were 20 percent at fault, a $100,000 award is reduced to $80,000.
Contact Us
For more information about pre-settlement funding in Delaware and whether you qualify, schedule a free consultation with Mustang Funding today. We serve Dover, Wilmington, Newark, Middletown, and other areas of the state. Since 2018, we have provided more than $50 million in funds to plaintiffs and attorneys.
