If you’re involved in a lawsuit and are being pressured to settle for significantly less than your case is worth, you may find yourself in a tough situation. The trial process can take months or even years, during which your ability to earn may be reduced due to your injuries, or your expenses may sky rocket due to necessary medical treatments. It can be tempting to agree to a smaller settlement now, rather than wait for a larger award later, especially if you’re facing financial hardship today. But if you settle now, there’s a good chance you could be missing out on a much larger settlement. If you want to wait for a full, fair settlement but need funds now, there are options for getting funds to cover your living expenses until your case settles for its maximum amount.
Ways to get Immediate Funding While Waiting for Your Settlement
Borrow from friends or family. If you’re able to borrow money from friends or family, this may be a good option. While it’s never easy to discuss the issue of borrowing money, but your friends and family may be the most sympathetic to your situation and may even allow you to borrow without paying any interest on the funds.
Apply for a credit card. This may be a good option if your financial needs are able to be taken care of by opening a new credit card to pay for your food, bills and other vital expenses while you wait for your case to settle. Make sure to look for cards that have low introductory interest rate so that you haven’t accrued a lot of interest when your settlement comes and you’re able to pay off your balance.
Take out a second mortgage. If you own your own home, consider taking out a second mortgage to help you cover your expenses while waiting for your case to settle. If you’re unfamiliar with the process, taking out a second mortgage is essentially taking out a loan against the equity on your home. For example, if your home is worth $250,000 and the balance on your current mortgage is $200,000, you have $50,000 of equity you can borrow against. This is a high-stakes loan, as the bank places a lien on your home they are able to repossess your home if you default on the new loan.
Pursue pre-settlement funding. If none of the above options work in your current situation, pre-settlement funding could be a great fit for you. Pre-settlement funding is a new type of funding that allows investors such as Cherokee Funding to provide you with funds to help you cover your expenses while you wait for your case to settle. Pre-settlement funding is considered a lien, not a loan, so you’ll only pay it back if you win your case. Additionally, because this type of funding is considered to be non-recourse funding, meaning you only pay back your borrowed amount and usage fees if you win your case, the rates are typically higher than those you may qualify for through credit card or personal loans.
If you think pre-settlement funding is right for you, speak with your attorney or call us at Cherokee Funding so we can begin to review your case and all documentation. If your case is approved, you’ll receive funding quickly, usually within 24 hours of processing. Most people who qualify are eligible for 10-15% of their total estimated award. Contact us today for more information.