After filing your personal injury lawsuit, you face a waiting game while you struggle to recover. It can take months, or even years, to receive a settlement or verdict. In the meantime, you have bills to pay. Pre-settlement funding in Louisiana can help tide you over until your case is settled.
Insurance companies often delay settlements for as long as possible, so injured parties are willing to accept less money. Louisiana pre-settlement funding may allow you to receive higher compensation since you are not desperate to pay bills.
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.
What Are the Benefits of Pre-Settlement Funding?
Our innovative and flexible litigation funding solutions ensure that no one is denied their right to a fair legal battle due to financial constraints. We achieve this mission through a commitment to transparency, integrity, and unwavering support for our clients as they navigate the legal landscape.
Other benefits include:
- Helps cover living expenses during litigation: There is no deadline to settle a civil lawsuit, and some can take years to resolve. A lawsuit advance offers financial relief while you await a financial settlement.
- Does not affect your credit in any way: Good credit is not a requirement for pre-settlement funding, and applying for a lawsuit advance will not impact your credit.
- Does not require an employment check: We approve applications solely based on the strength of your legal claim, not your job history.
- It is risk-free even if you lose your case: If you don’t get a court award or settlement, you don’t have to pay anything back. That is why we refer to pre-settlement funding as non-recourse financing. We absorb all the risk.
- Typically has no restrictions on how you use it: From coverage of legal expenses to food, utilities, and other day-to-day bills, use pre-settlement funding as you see fit.
- Does not require monthly payments: Unlike credit cards and personal loans, litigation advances do not have monthly payments. Instead, these funds are only repaid once your case is completed.
- Offers fast cash payments: Cash transfers for qualifying cases can be made within 24-48 hours after your application is approved.
How Pre-settlement Funding in Louisiana Works
To qualify for pre-settlement funding in Louisiana, you must have a pending personal injury case and representation by an attorney.
You and your lawyer must agree to provide information regarding your case to the lender. That includes the nature of your injury and your lawyer’s estimation of the strength of your case and the potential settlement amount.
After reviewing your application, the lender decides about pre-settlement funding. Once approved, you can usually expect to receive the funds within 24 hours. It’s that simple!
Use the money to pay medical and basic living expenses or for anything you want.
Once you receive your settlement or verdict, your lawyer pays back the pre-settlement amount, with interest, to the lender.
Louisiana Pre-settlement Funding Laws
Pre-settlement funding is legal in Louisiana. These loans are considered non-recourse. The lender takes on all risks, not the plaintiff. That is why each pre-settlement application is carefully evaluated.
If it turns out that you do not receive any money from a settlement or verdict, you do not have to pay the money back.
Workers’ compensation cases do not qualify for pre-settlement funding in Louisiana. Damages in medical malpractice cases are capped at $500,000, although future medical expenses are not subject to the cap.
Personal Injury and Other Pre-Settlement Funding in Louisiana
In Louisiana, the statute of limitations for filing a personal injury lawsuit is just one year from the date of the accident. That is among the shortest statute of limitations in the nation. Failure to file a personal injury lawsuit by the deadline means the claim cannot go forward and you will not receive compensation.
When it comes to liability, Louisiana operates under a comparative fault doctrine. Anyone contributing to the accident is liable for negligence as per their percentage of fault as determined by a judge or jury. For instance, if the jury finds you 20 percent at fault for an accident, a $200,000 award is reduced to $160,000.
Pre-Settlement FAQs
Let’s review the basics of pre-settlement funding and answer some other questions you might have.
How is Pre-Settlement Funding Repaid?
Pre-settlement funding is repaid when you reach a settlement or receive a favorable verdict. Depending on the state, settlements or judgment awards are distributed in the following order:
- Medical liens and related fees
- Attorney and court fees
- Pre-settlement funding advances
You receive the balance of the settlement or award after these distributions are made. Your lawyer should handle all distributions.
What are your rates?
At Mustang Funding, we offer industry-competitive rates for every six months your case is outstanding. Your exact rate, though, depends on various factors relating to the specifics of your case. If you’re approved for funding with us, we’ll send an agreement detailing the terms of funding.
Can I apply for an additional lawsuit advance if my case is still ongoing?
Complex, high-stakes legal cases can take a long time to resolve. If you need additional funds, you can apply for another round of pre-settlement legal financing. We review applications on a case-by-case basis.
What happens if my case settles for less than the pre-settlement funding amount?
If your case settles for less than expected, you are not responsible for covering that gap. We consider this risk when reviewing your application and offering you a lawsuit advance.
Is pre-settlement funding worth it?
Yes, pre-settlement funding can be worth it, especially if you’re facing financial struggles during a legal case. It offers immediate relief, allowing you to manage essential expenses like legal fees and rent while you wait for your case to conclude. This financial support acts as a lifeline, ensuring you can navigate through the challenges of the legal process without added stress about money.
At Mustang Funding, our distinctiveness lies in our proven expertise. Our seasoned management team holds decades of experience in successfully managing institutional capital within the alternative investment industry.
Got questions? Contact us today. Our team is eager to provide the answers you need.
Contact Us
If you would like to learn more about pre-settlement funding and whether you are eligible, contact Mustang Funding today. We serve New Orleans, Baton Rouge, Shreveport, Metairie, Lafayette, and other areas of the state.
