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.
Is Pre-settlement Funding a Good Idea?
Pre-settlement funding can be a practical and timely solution for individuals facing financial hardship due to a pending personal injury lawsuit. This form of financial support allows your attorney the time and flexibility to negotiate the most favorable settlement terms or prepare for trial without the added pressure of your immediate financial needs.
Unlike traditional bank loans, pre-settlement funding carries no repayment obligation if the case is unsuccessful, making it a lower-risk option for plaintiffs.
Even when a case has substantial legal merit, personal injury lawsuits can take months or years to resolve—especially if they proceed to trial. During this time, many plaintiffs struggle to cover essentials such as rent, mortgage payments, food, and utilities, adding emotional and financial stress to an already difficult situation.
Pre-Settlement Funding Helps Level the Playing Field
Insurance companies often take advantage of plaintiff vulnerability, delaying settlement offers in hopes that financial pressure will compel you to accept less than you deserve. Pre-settlement funding helps level the playing field by giving you the resources to meet your basic needs while your attorney fights for the compensation you’re entitled to.
Additionally, eligibility for this type of funding is based solely on the strength of your legal claim—your credit score and employment history are not factors.
How to Apply for Pre-Settlement Funding
Funding companies provide a financial advance directly to you, not your lawyer, to use in any manner you see fit. Assuming you’ve met the threshold requirement of retaining legal counsel and have a pending legal action filed in court, the first step toward receiving a cash advance on your future settlement is to apply.
- Step One: Fill out an application. Every funding company and state has slightly different rules and application forms, but most will require your attorney’s input to help assess the value of your case. Always provide adequate contact information for them or the law firm handling your case.
- Step Two: 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.
- Step Three: Review and accept the funding proposal. When you receive it, review the details with your attorney. They are 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’s 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.
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.
