Construction accidents can be life-altering, not just physically but financially as well. A construction worker injured on the job may find themselves unable to work, resulting in a loss of income and mounting medical bills.
The stress of financial instability can make recovery even more challenging. However, there is hope. Construction accident legal funding can help alleviate some of the financial stress and allow you to focus on your recovery.
What Is Construction Accident Legal Funding?
Construction accident legal funding, also known as a pre-settlement loan or legal funding, is a cash advance provided to plaintiffs who are involved in a construction accident lawsuit. This type of funding is not a loan in the traditional sense. Instead, it is a non-recourse advance, meaning that if the plaintiff loses the case, they do not have to repay the funding.
How Does Construction Accident Legal Funding Work?
To obtain construction accident legal funding, a plaintiff must apply through a legal funding company. The company will evaluate the case and determine the likelihood of a successful settlement or judgment. If the company believes the case has merit, it will provide a cash advance to the plaintiff, typically ranging from a few thousand dollars to several hundred thousand dollars, depending on the severity of the injuries and the projected outcome of the case.
The plaintiff can use the funding for any purpose, such as paying bills, medical expenses, or living expenses. The funding is not repaid until the case is settled or a judgment is reached. If the plaintiff loses the case, they do not have to repay the funding.
Benefits of Construction Accident Legal Funding
The primary benefit of construction accident legal funding is that it provides financial relief to plaintiffs who may be struggling to pay bills and make ends meet. The cash advance can be used to pay for medical expenses, rent, mortgage payments, and other living expenses, allowing the plaintiff to focus on their recovery without worrying about finances.
No Repayment if You Lose
Unlike traditional loans, construction accident legal funding is a non-recourse advance, meaning that if the plaintiff loses the case, they do not have to repay the funding. This provides a safety net for plaintiffs who may be hesitant to take on additional debt.
No Credit Check
Another benefit of construction accident legal funding is that there is no credit check required. The funding is based solely on the strength of the case, not the plaintiff’s creditworthiness. This makes it easier for plaintiffs with poor credit or no credit history to obtain funding.
Fast Approval Process
Construction accident legal funding companies typically have a fast approval process. Once the application is submitted, the company will review the case and provide a decision within a few days. This can be a significant advantage for plaintiffs who need money quickly to pay for medical expenses or other bills.
Construction accident legal funding is a non-invasive process. Unlike traditional loans, there is no collateral required, and the funding company does not have the right to interfere with the plaintiff’s case. This allows the plaintiff to focus on their recovery without worrying about interference from the funding company.
Risks of Construction Accident Legal Funding
One of the main risks of construction accident legal funding is the high-interest rates. Because the funding is a non-recourse advance, the funding company takes on significant risk and, as a result, charges higher interest rates than traditional loans. It is essential for plaintiffs to carefully review the terms of the funding agreement and ensure that they understand the interest rates and fees.
Possible Reduction in Settlement or Judgment
Another risk of construction accident legal funding is that it may reduce the amount of the settlement or judgment. If the plaintiff accepts the funding and then settles the case, the funding company will be entitled to a portion of the settlement or judgment, typically ranging from 10% to 20%. This means that the plaintiff may receive a lower payout than they would have without the funding.
It is important for plaintiffs to carefully consider whether the financial relief provided by the funding outweighs the potential reduction in the settlement or judgment.
Limited Funding Availability
Construction accident legal funding may not be available for all cases. Funding companies typically evaluate the strength of the case and the likelihood of a successful settlement or judgment before providing funding. If the case is deemed unlikely to succeed, the plaintiff may not be able to obtain funding.
Lack of Regulation
Construction accident legal funding is not regulated by the government, which means that funding companies may have different policies and practices. It is important for plaintiffs to carefully research funding companies and read the terms of the funding agreement before accepting the funding.
Apply for Legal Funding Today
Construction accidents can be devastating, both physically and financially. Construction accident legal funding can provide much-needed financial relief to plaintiffs who are struggling to make ends meet. While there are risks associated with construction accident legal funding, such as high-interest rates and a possible reduction in the settlement or judgment, the benefits can outweigh the risks for many plaintiffs.
It is important for plaintiffs to carefully consider their options and consult with a qualified attorney before accepting construction accident legal funding. With the right guidance, construction accident legal funding can help alleviate financial stress and allow plaintiffs to focus on their recovery. Apply for construction accident legal funding today.
Featured Photo by Karolina Grabowska: https://www.pexels.com
With a BA in communications and paralegal experience, Irma Dengler decided to make the best of her writing skills. She decided to turn complicated legal matters into something more palatable for the masses. Therefore, Irma became a law communicator who writes about everyday problems so everyone can understand them and take the appropriate action. She specialized in personal injury cases, as they are more common than anyone thinks, but her areas of expertise also include civil law, criminal law, insurance-related issues, and more.