If you suffered a serious personal injury because of another party’s negligence, it is likely you filed a lawsuit against the defendant. The accident took a lot out of you physically, psychologically, and financially. Most personal injury cases are settled, but the process can take a long time. You may have to wait years for the settlement. Meanwhile, as you recuperate from your injuries, you need money to pay for your basic living expenses. Pre-settlement funding in Alabama can help.
While pre-settlement funding is sometimes referred to as a lawsuit loan, that is not an accurate characterization. These are not loans but disbursements of money in anticipation of a future lawsuit settlement. You are given money now and will pay it back after the settlement. In essence, it is a cash advance.
How Pre-Settlement Funding Works in Alabama
With pre-settlement funding in Mobile, Huntsville, or anywhere in Alabama, there is no monthly payment due during the period in which your case is pending. There is also no need for collateral. Once you agree to a settlement or a verdict is reached in your case, your attorney will pay back the pre-settlement funding out of the settlement or award.
If your pre-settlement funding application is approved, you should receive the money quickly, deposited directly into your bank account. Your attorney may also benefit indirectly, as they now have additional time to put together the strongest case possible on your behalf.
The defendant’s insurance company has less reason to drag out the case, hoping you will agree to a lower settlement out of financial desperation.
Keep in mind that pre-settlement funding is non-recourse. That means if you lose your case, you do not have to pay the money back. That is a risk the lender takes. For the plaintiff, it’s a win-win situation.
Alabama Pre-Settlement Funding Laws
In Alabama, pre-settlement funding falls under the Alabama Small Loan Act, § 5-18-1. Only those companies licensed to provide lawsuit funding may offer pre-settlement funding.
State law does not restrict how clients spend their pre-settlement funding. You can use the money for current living expenses or to pay down debt.
Personal Injury Pre-Settlement Funding in Alabama
To qualify for personal injury pre-settlement funding in Alabama, you must have an active personal injury claim with an attorney. Your lawyer must agree to work with Mustang Funding.
In Alabama, the statute of limitations for filing a personal injury lawsuit is generally two years from the date of the injury. Failure to file a lawsuit within this timeframe means your claim cannot go forward. It is critical to file your personal injury lawsuit within the statute of limitations.
Alabama law operates under a contributory negligence standard. If you were even partly responsible for the accident, you may not recover damages under the law. This strict standard can affect your ability to receive compensation. That is why we must work with your lawyer. They must offer proof that, in your case, the defendant was entirely at fault.
Learn More About Pre-Settlement Funding in Alabama
If you would like to know more about how pre-settlement funding can help you in Montgomery, Birmingham, and throughout Alabama, contact Mustang Funding today. Our application process is easy and straightforward, and in some cases, you can receive funding within 24 hours of approval.
