Suffering a personal injury due to another party’s negligence or recklessness turns your world upside down. While recovering from your injuries, you may be unable to work, but medical and other bills keep piling up. You might face eviction or lose your home to foreclosure. Meanwhile, your case may take months or even years to work its way toward a settlement or verdict.
If you have an ongoing personal injury lawsuit against the party responsible for your injuries, you may qualify for pre-settlement funding in Florida. These funds can help you pay your living expenses while you wait for the outcome of your lawsuit.
Although pre-settlement funding is sometimes called a lawsuit loan, it is not a loan per se. Instead, it is like a cash advance. Your future settlement serves as a form of collateral. You can spend pre-settlement funding on whatever you need to ease your financial burden. If you reside in Miami, Tampa, Orlando, or anywhere in Florida, or in other states where legal funding is authorized. Call Mustang Funding today to get started.
How Pre-Settlement Funding Works in Florida
One of the advantages of legal funding for plaintiffs is that it is non-recourse. That means if you do not win your case or do not receive a settlement, you do not have to pay the money back. That is a risk the lender takes on.
Because pre-settlement funding is not a loan, it does not affect your credit score. No credit checks are conducted.
Pre-settlement funding in Florida works like this. If you’re in a lawsuit and need money to cover expenses while awaiting the conclusion and settlement of the case, you can take out an advance on the money you expect to win. As a result, you won’t have to settle for less than you deserve, which gives you the chance to hold out for a better outcome.
Your attorney must agree to work with us before you can receive pre-settlement funding. When you receive your settlement or verdict award, the pre-settlement funding and associated fees are collected by the lender before you receive your settlement money.
The Role of Your Attorney
As noted, your attorney plays a crucial role in the pre-settlement funding process, helping us evaluate the strength of your case. Depending on your individual circumstances and the laws in your state, plaintiffs may be eligible for pre-settlement funding based on an expected settlement amount. For example, if your lawyer estimates a potential settlement of $200,000 for your case, you could qualify for pre-settlement funding that aligns with this estimate.
Pre-settlement funding is repaid when you reach a settlement or receive a favorable verdict. Depending on the state, settlements or judgment awards are distributed in the following order:
- Medical liens and related fees
- Attorney and court fees
- Pre-settlement funding advances
The plaintiff receives the balance of the settlement or award after these distributions are made. Your lawyer should handle all distributions.
Funding for All Types of Civil Lawsuits and Personal Injury Cases
Below are some of the types of claims we provide pre-settlement funding for which include the following:
- Motor Vehicle Accidents (e.g., cars, trucks, motorcycles)
- Construction and worksite claims
- Jones Act and Maritime Lawsuit Funding
- Federal Employer Liability Act (FELA)
- Workplace Discrimination
- Mass Tort, Class Action Lawsuits
- Civil Rights
- Workers’ Compensation
- Medical Malpractice
- Premises Liability
- Wrongful Death
- Wrongful Termination
- Product Liability
- Dog Bites
- Civil Sexual Assault and Battery
If you have questions about whether your claim is eligible, don’t hesitate to reach out to us. We’d love to see if we can help. Note that In Florida, the statute of limitations for filing a personal injury lawsuit is generally two years from the date of the injury. Failing to file your lawsuit within that timeframe means your case cannot go forward.
Eligibility Criteria for Pre-Settlement Funding in Florida
To obtain pre-settlement funding, you must have a pending personal injury lawsuit and representation by an attorney. We consult your attorney to determine whether you have a strong case and are likely to obtain a substantial settlement or a favorable verdict if heading to trial.
While the rules for pre-settlement funding vary by state, your lawyer does not have the authority to unilaterally deny you from seeking pre-settlement funding. This decision is yours to make. However, we require your attorney’s cooperation to proceed with the funding application.
What are the Benefits of Choosing Pre-Settlement Funding?
There are several benefits to pre-settlement funding for individuals awaiting the outcome of legal proceedings:
- There is no deadline to settle a civil lawsuit: Some can take years to resolve. A lawsuit advance offers financial relief while you await a settlement or a jury verdict.
- 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 require an employment check: We approve applications solely based on the strength of your legal claim, not your job history.
- 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 Does Pre-Settlement Funding Compare With Other Options?
Other funding options and their potential drawbacks:
Personal Loans
Unlike pre-settlement funding, loans must be paid back, whether you win your case or not. Loans are generally only available to people with good credit scores and steady paychecks, two requirements that may be out of reach if you are a plaintiff who has suffered a serious personal injury and unable to work.
Credit Cards
Credit cards often carry high annual percentage rates (APRs), leading to significant debt if the balance is not paid off quickly. Credit card debt is recourse debt, meaning you are personally responsible for repayment regardless of the outcome of your case.
Retirement Savings
If you withdraw funds from your 401(k) before the age of 59½, you may face a 10% early withdrawal penalty, reducing the amount you receive. In addition, withdrawals from a 401(k) are treated as taxable income, which can increase your tax liability for the year and potentially push you into a higher tax bracket.
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.
Florida Pre-Settlement Funding Laws
Under Florida law, to qualify for pre-settlement funding you must reside in the state or have a pending personal injury lawsuit there. Other requirements include:
- Severe injuries caused by a third party
- A personal injury claim filed in civil court
Personal Injury Pre-Settlement Funding in Florida
Personal injury pre-settlement funding in Florida all depends on the strength of your case. We will gauge the strength of your case after a discussion with your attorney.
In Florida, the statute of limitations for filing a personal injury lawsuit is generally two years from the date of the injury. Failing to file your lawsuit within that timeframe means your case cannot go forward.
Learn More About Pre-Settlement Funding in Florida
If you would like to know more about how legal funding solutions can help you in Jacksonville, St. Petersburg, or anywhere in Florida, contact Mustang Funding today. If approved, you may receive your funds within 24 hours.
