If you were seriously injured due to another party’s negligence and have a lawsuit in progress, it is likely that you are dealing with financial strains while awaiting the outcome of settlement negotiations. This is where Alaska pre-settlement funding can help.
While pre-settlement funding is sometimes referred to as a lawsuit loan, these payments are not actual loans. Instead, they are funds disbursed in anticipation of a future lawsuit settlement.
Think of pre-settlement funding in Alaska as similar to a cash advance on your settlement.
How Pre-Settlement Funding in Alaska Works
Pre-settlement funding is non-recourse. While the funds are distributed based on the likelihood of your receiving a settlement or judgment in your personal injury case, if such a settlement or judgment does not occur, you are not liable for repayment.
Once a settlement amount is determined or you are awarded compensation after a trial, the pre-settlement funding is repaid out of those funds.
Unlike bank loans, pre-settlement funding does not involve income verification, employment history, or credit checks. Your potential settlement serves as collateral for the funding.
While most people use pre-settlement funds to pay down debts or expenses incurred due to their injury and subsequent inability to work, there are no restrictions on what you can do with your pre-settlement funding.
Alaska Pre-Settlement Funding Laws
In Alaska, you must have an attorney representing you in your case to qualify for a pre-settlement loan. Your attorney must agree to discuss the details of your case with the lender. The lender makes a decision whether to approve pre-settlement funding based on the circumstances of your claim and the likelihood of your receiving a significant settlement or judgment.
You must also submit documentation pertaining to your case, such as medical records.
Personal Injury Pre-Settlement Funding in Alaska
While various types of cases are eligible for pre-settlement funding, personal injury cases are the most common.
Alaska’s statute of limitations for filing a personal injury lawsuit is typically two years from the date of the accident. For medical malpractice, the statute of limitations is three years.
Once your lawsuit is filed, it can take a considerable amount of time to resolve. Meanwhile, you may struggle to pay bills for basic necessities.
Alaska is a modified comparative negligence jurisdiction regarding compensation. If a party is more than 50 percent responsible for the accident, they cannot receive compensation. However, if it is determined that they bear some fault for the accident, any award is reduced by that percentage of fault. For instance, if a jury decides that you were 20 percent at fault, a $10,000 award is reduced to $8,000.
Alaska imposes limits on certain damages. In medical malpractice cases, non-economic damages such as pain and suffering are limited to $250,000. The limit rises to $400,000 in cases of wrongful death or severe, permanent physical impairment that is more than 70 percent disabling.
Contact Us
For more information about pre-settlement funding in Alaska and whether you are eligible, contact Mustang Funding today. We serve Anchorage, Fairbanks, Juneau, Sitka, and other areas of this vast state.
