A drunk driver, headed the wrong way on the freeway, collides head-on with a 38-year-old mother of three. The drunk driver survives, but the woman dies instantly. Her grieving husband, faced with raising three kids on his own, must now also worry about paying for his wife’s funeral costs. Since he doesn’t have the more than $10,000 needed to cover her burial expenses, he charges everything on his credit cards and decides he will worry about how to pay for it later. Yet, unable to bring himself to return to work, the bills quickly pile up.
Worst-Case Scenario. Through no fault of his own, the husband is facing his worst-case scenario—a life without his wife, an inability to work and mounting debt. But since his lawsuit against the drunk driver’s insurance company is solid, it gives him an option he didn’t know he had. He can receive pre-settlement funding based on the value of his lawsuit through a pre-settlement company such as Rockpoint Legal Funding. The money can be used to pay bills while waiting for the case to conclude.
The husband will not have to pay back the funding until the case settles. This funding enables him time to grieve and regroup without worrying about the costs of the funeral.
Pre-Settlement Funding Advantages. Pre-settlement funds are not loans. They are non-recourse monetary fundings. Since pre-settlement funding is based on the strength of the plaintiff’s case, no loan approval is necessary. That means funds can be wired to the injured plaintiff within hours after the funding company receives the plaintiff’s completed online form. And again, since it’s not a loan, if the plaintiff’s case does not prevail, the funds do not have to be repaid.
Of course, not all funding companies operate similarly. Certain ones charge high interest rates that accrue monthly and others tack on fees that are often hidden in the fine print. It is up to the plaintiff’s attorney to ensure that the client understands the full cost of plaintiff funding and that all fees are disclosed upfront and are understood.