Since suffering a serious injury due to another party’s negligence or recklessness, more than your body is harmed. Because you cannot work, your financial situation is bleak. Medical bills keep piling up. Finding the money to keep the lights on, put food on the table, and pay the rent or mortgage is getting tough.
You will almost certainly receive a settlement in your personal injury lawsuit, but it can take months or even years before you get the money. Pre-settlement funding in New York can help you pay your bills while you wait for your case to settle.
Although pre-settlement funding is sometimes referred to as a lawsuit loan, it is not actually a loan. Instead, it is much like a cash advance.
No collateral is necessary. Pre-settlement funding disburses money in anticipation of a future personal injury settlement or verdict. There is no credit check or background check involved.
Spend the money to fund your living expenses, pay down debt, or any other need.
How Pre-Settlement Funding Works in New York
Pre-settlement funding in New York works by determining the merits of your case. You must have an attorney and a civil personal injury lawsuit currently in progress. Your lawyer must agree to work with us.
After assessing the potential value of your case and its likelihood of success, a decision regarding pre-settlement funding is made.
In New York, pre-settlement funding is non-recourse. That means that even if you lose your case, you do not have to pay the pre-settlement funding back. The lender absorbs that risk.
New York Pre-Settlement Funding Laws
New York is one of the relatively few states operating under a pure comparative negligence standard when it comes to liability. That means a plaintiff can recover damages in a personal injury case whether they were not at fault or were 99 percent at fault.
The plaintiff’s degree of fault affects their compensation, with the award reduced by their percentage of fault. For instance, if the award is $100,000 but the plaintiff is found 30 percent liable, the award is reduced to $70,000.
Requirements for pre-settlement funding lenders in New York include:
- Lenders must disclose all details and fees in the contract.
- Total repayment amounts must be calculated at six-month intervals up to 36 months.
- Plaintiffs are permitted to cancel the agreement within five days without penalty.
- The plaintiff’s attorney must certify in writing that the terms of the contract were explained to the client.
In New York, the statute of limitations for filing a personal injury lawsuit is generally three years from the date of the accident. Failure to file a personal injury lawsuit within that timeframe means your case cannot go forward.
Learn More About Pre-Settlement Funding in New York
If you would like to know more about pre-settlement funding in New York and how it can help you, contact Mustang Funding today. If approved, you may receive your funding in as little as 24 hours. We serve New York City, Yonkers, Albany, Buffalo, Rochester, Syracuse, and every region throughout the state.
