Auto accident settlements are often delayed due to disputes over liability, time needed to determine the long-term prognosis of serious injuries, or insurance company tactics. During this time, major financial obligations, like mortgage payments, can become harder to manage. Meanwhile, everyday expenses for food, utilities, and transportation continue to add up, especially if your injuries prevent you from working.
Car accident legal funding can help you stay financially afloat. It is not a loan, and there are no credit checks. Like a cash advance, pre-settlement funding is repaid when you receive your settlement or verdict, which serves as collateral. Because it’s non-recourse, you owe nothing if you don’t win your case.
Reasons for Auto Accident Settlement Delays
The most common reasons for delays in auto accident settlements include:
- Long-term injuries: Severe injuries often delay settlements because attorneys and insurers wait until you reach Maximum Medical Improvement (MMI) to accurately assess future medical needs and costs. MMI ensures a clearer picture of future medical needs and associated costs. If ongoing treatment is required, it can also extend the time before damages can be fully calculated.
- Delays in Obtaining Official Records: Hospitals, police departments, and other agencies may take weeks or even months to release essential documents such as medical records, billing statements, or accident reports, slowing the process.
- Liability disputes: In some car accidents, fault is straightforward. In others, especially those involving multiple vehicles, liability can be complex. Insurance companies may conduct lengthy investigations, reviewing police reports, interviewing witnesses, and sometimes hiring accident reconstruction experts, all of which take time.
- Insurance delay tactics: Even when liability is clear, some insurers intentionally slow the settlement process. They may request unnecessary documentation, repeatedly ask for additional statements, or drag out negotiations to pressure injured parties into accepting a lower payout.
Pre-settlement lawsuit funding is a valuable resource for plaintiffs waiting for a verdict or settlement. It can take months or even years for a plaintiff to receive compensation.
How Pre-Settlement Funding Can Help
A lawsuit advance gives you breathing room to negotiate a higher settlement, so you don’t feel the urgency to settle quickly just to keep up with the bills. Mustang Litigation Funding works with plaintiffs to provide peace of mind throughout the legal process. Learn more about the ins and outs of pre-settlement funding to determine if a lawsuit advance makes sense for you and your pending claim.
How It Works
This is how pre-settlement funding works:
You must be at least 18 years of age, have a pending personal injury lawsuit, and have a lawyer representing you. When filling out the application, you must include your attorney’s contact information. Our team consults them and confirms the strength of the case. If it meets our criteria, such as clear liability, documented injuries, and strong supporting evidence, we send a proposal to your attorney so that you can review it.
While the final decision on whether to accept pre-settlement funding is up to you, your attorney plays an important role. They will explain the terms of the proposal and go over any pros or cons based on the specific details of your case. If you decide to go forward, pre-settlement funds are usually disbursed within 24-48 hours.
As noted, pre-settlement funding is non-recourse. If it turns out that you do not receive a settlement or the verdict is not in your favor, you do not have to repay the funds. In essence, we assume the risk.
Contact Mustang Funding Today
If you are experiencing delays in your car accident settlement and facing financial instability, contact Mustang Funding today. We provide best-in-class capital solutions for law firms, plaintiffs, litigation vendors, and other legal assets. Learn more from our ultimate guide to pre-settlement funding.
About Mustang Funding
Mustang Funding, founded in 2018 and based in Wayzata, MN, is a litigation finance company dedicated to empowering individuals and law firms nationwide with transparent and innovative financial solutions. With over $170 million funded, 10,000+ checks issued, and more than 3,000 cases financed, Mustang provides plaintiff pre-settlement funding, law firm financing, and commercial funding to meet diverse client needs. Their commitment to transparency, integrity, and expertise sets them apart, offering tailored financial support to plaintiffs, businesses, and legal professionals. By bridging capital gaps and fostering access to justice, Mustang Funding continues to lead the legal asset investment industry with a strategic, inclusive, and forward-thinking approach.
