Your serious personal injury due to another party’s negligence or recklessness has really set your life back. Even though you have a lawsuit pending, the settlement process can take a long time. Meanwhile, you cannot work during your recovery and need money to pay your medical and other expenses. Pre-settlement funding in Massachusetts can keep bill collectors from your door and pay for necessities until your settlement payout is finally received.
Is Pre-Settlement Funding Considered a Loan?
No, pre-settlement funding is not a loan. While we occasionally use the term “lawsuit loan”—since it’s a common search phrase—what we offer is technically different.
Pre-settlement funding is a non-recourse cash advance provided in exchange for a portion of your potential future settlement. Unlike a traditional loan, you are not required to repay the advance if you lose your case. In essence, we assume the risk. You receive funds upfront, and if your case is successful, we collect an agreed-upon share of your settlement.
How Pre-Settlement Funding Works in Massachusetts
In Boston, Worcester, and elsewhere in Massachusetts, pre-settlement funding is non-recourse. That means if you do not receive a settlement or a jury verdict is not in your favor, you can keep the pre-settlement funding. The lender takes the risk of this potential outcome.
You can spend pre-settlement funding in any manner you choose. Pre-settlement funding in Massachusetts does not affect your credit score. There are no credit checks or employment verification involved.
When you receive your settlement or jury award, the pre-settlement funding is repaid before your settlement or award money is disbursed.
Approval for Funding Is Based on the Merits of Your Case
With litigation funding, your approval is based on the strength of your case. If your case has merit and a high likelihood of success, you could qualify for funding regardless of your personal finances.
For example, a construction worker was injured when a scaffold collapsed due to a defect in the equipment. Although the worker is receiving workers’ compensation benefits, they also filed a third-party personal injury lawsuit against the scaffold manufacturer for negligence.
This case is supported by substantial evidence, including expert testimony, detailed witness accounts, and safety reports indicating that the equipment failed to meet Occupational Safety and Health Administration (OSHA) standards. These reports highlight lapses in compliance, such as inadequate maintenance and failure to implement required safety measures, strengthening the claim of third-party negligence.
Because of the clear liability and substantial damages involved, the worker has a strong case with a high probability of success, making them a likely candidate for pre-settlement funding, regardless of their credit score or income.
How Much Legal Funding Can You Get in Massachusetts?
Plaintiffs in Massachusetts may be eligible for pre-settlement funding amounts ranging from $500 to $100,000 or more, with the exact figure determined by the strength and expected value of their legal claim. This wide range reflects the diversity of personal injury cases and the varying degrees of liability, damages, and supporting evidence.
A plaintiff involved in a car accident with soft-tissue injuries, such as whiplash, and minimal property damage may qualify for a smaller advance, perhaps $1,000 to $3,000, because the anticipated settlement amount is relatively low.
In contrast, a plaintiff who suffered a traumatic brain injury in a trucking accident with clear liability and extensive medical documentation might be approved for a much larger sum, possibly $50,000+, because the case is likely to result in a substantial settlement or jury award.
We evaluate several factors when determining the funding amount, including the severity of the injury, the clarity of fault, the stage of litigation, insurance policy limits, and whether liability is contested. The more compelling the evidence and the higher the potential recovery, the greater the funding amount the plaintiff may receive.
Massachusetts Pre-Settlement Funding Laws
To qualify for pre-settlement funding, you must have a pending personal injury lawsuit as a plaintiff filed in civil court. Your attorney must agree to work with us. We must verify that your injuries were serious enough to support your lawsuit.
We will also ensure that the defendant was indeed responsible for your injuries and that they have the ability to pay for any damages. For example, if the defendant is uninsured and has no assets, there is little likelihood that they can pay any award you receive.
Under the state’s pre-settlement funding laws, lenders must adhere to the following requirements:
- Clients are aged 18 and up.
- They can only work with clients represented by an attorney.
- All fees and interest rates associated with pre-settlement funding require disclosure.
- The total amount of repayment must be disclosed.
Personal Injury Pre-Settlement Funding in Massachusetts
Massachusetts uses a comparative negligence doctrine when it comes to liability. Even if you were partly responsible for the accident causing your injuries, you can still receive compensation if you were less than 51 percent at fault for the accident. Any compensation is reduced by your percentage of fault.
For instance, if a jury determines you were 20 percent at fault, a $100,000 award is reduced to $80,000.
The statute of limitations in Massachusetts for filing a personal injury lawsuit is generally three years from the date of the accident. Failing to file a personal injury lawsuit by that deadline means your case cannot go forward.
Why Choose Mustang Funding for Your Massachusetts Case?
We offer ethical institutional litigation funding to support justice. With personnel having 100+ years of combined investment experience and 50+ years in litigation finance, we’ve empowered 5,000+ civil litigants and 800 law firms.
Our pioneering spirit and commitment to innovation make us a trailblazer in the legal asset industry, offering a unique blend of experience, vision, and inclusivity to our valued clients.
The numbers speak for themselves:
- We have funded over $170,000,000 across our portfolio.
- We work with more than 1,000 law firms across the country.
- We’ve issued over 10,000 checks to individuals, firms, and groups.
- We have financed over 3,000 unique cases.
We achieve this mission through a commitment to transparency, integrity, and unwavering support for our clients as they navigate the legal landscape.
Learn More About Lawsuit Loans in Massachusetts
If you would like to know more about pre-settlement funding in Cambridge, Somerville, Northampton, or elsewhere in Massachusetts, contact Mustang Funding today to see how we can help. If approved, you may receive funding in as little as 24 hours.
