While conventional lawsuit loans provide assistance in particular situations while an individual is awaiting a personal injury settlement, medical emergencies could still leave him or her struggling financially. Even when there is health insurance in place, there are some types of treatment that could exceed the coverage or they might not be covered by the insurance. If the treatment cannot be paid for after it has been provided, a medical lien could be taken out by the healthcare provider or hospital on the personal injury lawsuit.
Similar to other liens, a medical lien allows the hospital to access a fraction of the settlement to pay for the treatment. However, once a medical lien has been placed on a personal injury lawsuit settlement by the provider, they could refuse to provide further treatment until payment is made to get rid of the lien. If this type of situation ever happens to you, medical lien financing might assist you with continuing to get the treatment you need.
Not unlike pre-settlement lawsuit loans, medical lien financing is essentially a cash advance offered to individuals who are plaintiffs in a lawsuit, as a percentage of their settlement. However, they slightly vary from conventional lawsuit loans.
Typically, a company that offers medical lien financing buys the lien from the healthcare provider or hospital that placed it on the lawsuit. Following this, the funder compensates the provider for the ongoing care and a portion of the settlement is used as collateral.
However, this form of lien funding for personal injury shares certain aspects of traditional lawsuit loans. Similar to regular legal financing, medical lien financing must be repaid with interest using a percentage of the settlement. Additionally, if you fail to secure a win in your lawsuit, you do not have to repay the medical funding agency. To be deemed eligible for medical lien financing, you have to be involved in an active lawsuit concerning an accident that was not caused by you. In addition, you must have a lawyer retained for the case.
In essence, medical lien financing has the same characteristics of a conventional lawsuit funding program. The medical funding company pays for the ongoing medical treatment received by the plaintiff, being fully aware that there are risks attached to this expenditure. If it ends up that the lawsuit concludes with no jury award or settlement being granted, the funding company loses its investment. The company will only recoup the money from the proceeds of the case when the personal injury lawsuit is settled. In addition, there is no risk to surgeons since they are paid directly and fully in the pre-operation process.
How Pre-settlement Funding Can Help
Lawsuits are typically time consuming and expensive. Getting the opportunity to present a case in court could take several months or even years. Actually, in some cases, this is merely just the beginning of a long, drawn-out and frustrating process. This could be made even worse if the injured person hits a financial roadblock as a result of the personal injury that has been suffered.
Not only is the litigation itself time consuming, it could also take months or much longer for the finalization of the process, before the plaintiff can ideally get a settlement and move forward with his or her life. Individuals who have suffered a loss or an injury could need funds to assist in covering expenses such as medical bills, utilities and rent. Until the money deserved by the patient has been received, there has to be a way for these bills to be paid.
Pre-settlement funding involves a company providing money upfront to an injured individual in exchange for a percentage of the settlement proceeds that are expected in the future. Then, when the case has been settled, the company will receive the percentage they bought. In essence, the money you are getting now is in exchange for repayment after the lawsuit is settled.
If the injury sustained in the accident prevents you from working or you are forced to work fewer hours, you might not have the funds needed to assist you with covering your bills. During a litigation that stops a plaintiff from working, it could be challenging for him or her to remain current on certain payments. Whether the bills are paid on credit cards and the plaintiff starts carrying more debt or he or she is forced to skip payments and go into default, settling the claim could have long-term implications on the finances. Going into debt can be avoided by way of pre-settlement funding.
It should be noted that pre-settlement funding is not considered a loan. This process does not involve borrowing money from a funding company that must be paid back over an established number of months or years. Pre-settlement funding actually involves selling a percentage of the future settlement proceeds in exchange for getting money upfront.
Amount that Can be Collected
The amount of money you are eligible to get will largely depend on the projected value of the lawsuit. You can be connected to companies that have the capacity to offer you as low as $300 and as high as $750,000. This will ultimately depend on the likely outcome of your claim and your current and future needs before the lawsuit is settled.
What Will Happen if More Cash is Needed Later?
Based on the specifics of the lawsuit, it may be possible for you to receive more than one advance. In a number of cases, you could sell a maximum of 15 to 20 percent of what the company providing the advance projects the final settlement could amount to, after any attorney or legal fees are paid. This number will depend on many different factors; therefore, the number could differ between a variety of companies providing pre-settlement funding. If the initial pre-settlement advance was not enough, you might be able to get another advance if the case is deemed qualifying. There are many options available, so you should consider going for a reputable and well-established funding company to provide pre-settlement funding.
What is the Timing of the Funding?
When money is needed to pay for groceries, rent and other obligations, every day is going to count. Reputable funding companies understand the importance of this and as such, you should just work with companies that are able to provide funds as quickly as possible. After a representative has the relevant information from you and your lawyer, he or she will be able to provide you a with a quote from the funding company in 48 hours or less.
If you opt to accept what is offered, your lawyer might have to provide additional details to the company so they can finalize the advance. However, when everything is approved, the customers typically get their funds as quickly as one to three business days. Every claim is unique; however, the company will endeavor to get you money as fast as possible.
Types of Claims that are Covered
To be eligible for pre-settlement funding, the individual will need his or her lawyer to complete an application that describes the case. While companies provide funding for a range of cases, they primarily provide cash to individuals involved in personal injury litigations.
These could include:
• Wrongful Death
This involves a close family member passing away because of the negligence or actions of someone else.
• Medical Malpractice
This comes about when you suffer long-lasting injury or pain as a result of the preventable blunders of a medical professional.
• Personal Injury
This occurs when an individual is injured because of the actions of another person.
• Product Liability
This involves a product malfunction that causes pain or injury.
• Premises Liability
This has to do with an injury that occurs while shopping in a store or while on someone’s property.
If you do not see your claim among those listed above, you should still consider calling a funding company. When you do, you will be asked a few questions regarding your case and you will be told whether the company can actually be of assistance. The ones highlighted above are merely the types of lawsuits that are most often pursued.
What if I do not Win the Case
As previously mentioned, if you are not successful in your lawsuit, you will not be required to pay anything back. Bear in mind, this type of funding is not a loan; rather, it involves buying a percentage of the settlement proceeds that might be received. Pre-settlement funding is also referred to as non-recourse; this is an indication that the company is not allowed to ask you to pay back the funds in the event that you do not win your lawsuit.