Your serious personal injury due to another party’s negligence or recklessness has really set your life back. Even though you have a lawsuit pending, the settlement process can take a long time. Meanwhile, you cannot work during your recovery and need money to pay your medical and other expenses. Pre-settlement funding in Massachusetts can keep bill collectors from your door and pay for necessities until your settlement payout is finally received.
Although pre-settlement funding is sometimes referred to as a lawsuit loan, that term is somewhat inaccurate. Pre-settlement funding differs from a loan in that it is a disbursement of money in anticipation of a future settlement. It is akin to a cash advance.
How Pre-Settlement Funding Works in Massachusetts
In Boston, Worcester, and elsewhere in Massachusetts, pre-settlement funding is non-recourse. That means if you do not receive a settlement or a jury verdict is not in your favor, you can keep the pre-settlement funding. The lender takes the risk of this potential outcome.
You can spend pre-settlement funding in any manner you choose. Pre-settlement funding in Massachusetts does not affect your credit score. There are no background checks, credit checks, or employment verification involved.
When you receive your settlement or jury award, the pre-settlement funding is repaid before your settlement or award money is disbursed.
Massachusetts Pre-Settlement Funding Laws
To qualify for pre-settlement funding, you must have a pending personal injury lawsuit as a plaintiff filed in civil court. Your attorney must agree to work with us. We must verify that your injuries were serious enough to support your lawsuit.
We will also ensure that the defendant was indeed responsible for your injuries and that they have the ability to pay for any damages. For example, if the defendant is uninsured and has no assets, there is little likelihood that they can pay any award you receive.
Under the state’s pre-settlement funding laws, lenders must adhere to the following requirements:
- Clients are aged 18 and up.
- They can only work with clients represented by an attorney.
- All fees and interest rates associated with pre-settlement funding require disclosure.
- The total amount of repayment must be disclosed.
Personal Injury Pre-Settlement Funding in Massachusetts
Massachusetts uses a comparative negligence doctrine when it comes to liability. Even if you were partly responsible for the accident causing your injuries, you can still receive compensation if you were less than 51 percent at fault for the accident. Any compensation is reduced by your percentage of fault.
For instance, if a jury determines you were 20 percent at fault, a $100,000 award is reduced to $80,000.
The statute of limitations in Massachusetts for filing a personal injury lawsuit is generally three years from the date of the accident. Failing to file a personal injury lawsuit by that deadline means your case cannot go forward.
Learn More About Pre-Settlement Funding in Massachusetts
If you would like to know more about pre-settlement funding in Cambridge, Somerville, Northampton, or elsewhere in Massachusetts, contact Mustang Funding today to see how we can help. If approved, you may receive funding in as little as 24 hours.
