If you were seriously hurt due to another party’s negligence and have filed a lawsuit, it can take a while for your settlement money to become available. If your case heads to trial, the wait is even longer. Meanwhile, you have bills to pay and little money coming in due to your injury.
While you wait for your lawsuit to resolve, Arizona pre-settlement funding can tide you over.
While pre-settlement funding is often referred to as a lawsuit loan, that is an inaccurate description. These funds are not loans. They are disbursements of money in anticipation of a future settlement.
Pre-settlement funding is similar to a cash advance.
How Pre-Settlement Funding in Arizona Works
Pre-settlement funding in Arizona is non-recourse. The lender takes a risk that you will receive a substantial settlement or award. If that does not happen, you do not have to pay your pre-settlement funding back. Otherwise, you pay back the funds once compensation is received.
Many people can no longer work due to their injuries and may think of obtaining a bank loan. Unlike a loan, pre-settlement funding requires no credit check or income verification. There is no effect on your credit score with pre-settlement funding, even if your funding is not approved.
There are also no restrictions on how you spend your pre-settlement funding in Arizona. While most applicants use the money to pay for living expenses or decrease their debt load, you can spend the funds on anything you want.
Arizona Pre-Settlement Funding Laws
Arizona has no laws specifically relating to pre-settlement funding.
To qualify for Arizona pre-settlement funding, you must have filed a personal injury lawsuit. You must be represented by an attorney, and your attorney must agree to participate in the process and provide certain information to the lender.
The lender reviews your case and evaluates its strengths. They also estimate how much money you are likely to receive in a settlement or verdict. Based on this determination, they decide whether to approve your pre-settlement funding in Arizona.
Personal Injury Pre-Settlement Funding in Arizona
In Arizona, the statute of limitations for filing a personal injury lawsuit is usually two years from the accident date. If a government agency is involved, the statute of limitations is much shorter, at just 180 days. If you do not file a lawsuit within this timeframe, your case generally cannot go forward.
Arizona is a comparative negligence state when it comes to personal injury lawsuits. That means a person may recover compensation even if they are partly at fault for the incident resulting in their injury. In theory, a person may recover damages even if they are 99 percent at fault for their injury.
However, their compensation is reduced by their percentage of fault. If a jury decides you were 20 percent at fault for your accident, a $100,000 award is reduced to $80,000.
Contact Us
For more information about pre-settlement funding in Arizona, contact Mustang Funding today. We serve Phoenix, Tucson, Mesa, Flagstaff, Scottsdale, Tempe, and other areas of the state.
