Can I use pre-settlement funding to pay my attorney's fees?

No, pre-settlement funding typically cannot be used to pay attorney contingency fees directly. Most personal injury attorneys work on contingency, meaning they only get paid from your settlement or judgment, not upfront. However, pre-settlement funding can help you cover living expenses while your attorney works on your case, and in some situations, funding may help pay for specific case costs like expert witnesses or depositions that your attorney might otherwise need to advance.

What legal costs can pre-settlement funding cover?

Pre-settlement funding can help cover various legal expenses including expert witness fees, deposition costs and court reporter fees, medical record retrieval and review, investigation expenses, court filing fees, medical examinations and evaluations, accident reconstruction services, forensic analysis, and other case development costs. While the funding goes to you personally, you can use it to pay expenses that strengthen your case.

How much do expert witnesses typically cost in personal injury cases?

Expert witness costs vary significantly by specialty and case complexity. Medical experts typically charge between five hundred to one thousand dollars per hour for testimony and case review. Accident reconstruction experts may charge three thousand to ten thousand dollars or more per case. Economic damage experts, vocational experts, and life care planners charge similar rates. Complex cases may require multiple experts, with total expert costs ranging from ten thousand to fifty thousand dollars or more.

Does my attorney pay for case costs or do I need to cover them?

In most contingency fee arrangements, attorneys advance case costs during litigation and are reimbursed from the settlement or judgment. However, these advanced costs are ultimately the client's responsibility and are deducted from your recovery. Some attorneys have limited budgets for case costs or may ask clients to contribute to expensive items like expert witnesses. Pre-settlement funding can help you contribute to case costs that improve your outcome.

Why are expert witnesses important in personal injury cases?

Expert witnesses are critical because they provide specialized testimony that establishes causation between the accident and your injuries, explains complex medical conditions to juries, calculates economic damages including future medical costs and lost earning capacity, reconstructs accident scenes to prove liability, and counters defense expert testimony. Cases with strong expert support typically achieve significantly higher settlements and verdicts than cases without expert testimony.

Can pre-settlement funding help me get better case outcomes?

Yes, pre-settlement funding can lead to better case outcomes by allowing comprehensive case development with proper expert testimony, thorough investigations and evidence gathering, complete medical treatment and documentation, adequate time for discovery and depositions, and the ability to reject lowball settlement offers. Cases with proper funding for development consistently achieve higher recoveries than cases settled prematurely due to financial pressure.

What are deposition costs and who pays for them?

Deposition costs include court reporter fees, transcript preparation, and video recording if needed. A single deposition can cost between five hundred to two thousand dollars or more. Multiple depositions of witnesses, experts, and parties are common in personal injury litigation. Typically, the party requesting the deposition pays the court reporter, though these costs are ultimately reimbursed from settlement. Pre-settlement funding can help cover deposition expenses that strengthen your case.

How does pre-settlement funding differ from attorney cost financing?

Pre-settlement funding provides cash advances directly to plaintiffs based on their expected settlement, which they can use for any purpose including living expenses or case costs. Attorney cost financing provides funding directly to law firms to cover case expenses like expert fees and depositions. Both are non-recourse and only repaid if the case is successful, but pre-settlement funding gives you direct control over how funds are used.

Should I discuss using funding for legal costs with my attorney?

Yes, you should always discuss your funding plans with your attorney. They can advise which case expenses would most strengthen your claim, help prioritize spending on experts or investigations that maximize case value, coordinate with the funding company if needed, ensure proper documentation of expenses, and strategize how to use available resources most effectively. Your attorney's guidance ensures funding is used to achieve the best possible outcome.

Is using pre-settlement funding for legal costs worth the expense?

Using pre-settlement funding for strategic legal costs is often worth the expense when it enables expert testimony that significantly increases settlement value, allows thorough case development that strengthens your position, prevents premature settlement due to financial pressure, or provides evidence that proves liability or damages. The increased recovery from a well-developed case typically far exceeds the cost of funding, resulting in higher net proceeds despite funding fees.

How to Use Pre-Settlement Funding to Cover Your Legal Costs

When you are involved in a legal case, the process can be long and stressful. Legal fees, court costs, and living expenses often accumulate quickly while your case is still pending. For many plaintiffs, this financial strain can make it even harder to focus on their case. However, pre settlement funding can offer a much-needed financial lifeline. It provides you with a cash advance before your case settles, helping you cover the costs associated with your legal battle and your day-to-day expenses while you wait for your settlement.

In this article, we will explore what pre settlement funding is, how it can help you cover legal costs, and what you need to know before considering this financial option. We will also look at the potential benefits and drawbacks of pre settlement funding to help you make an informed decision.

What is Pre Settlement Funding

Pre settlement funding is a non-recourse cash advance that is provided to plaintiffs who are involved in ongoing litigation. This funding is different from traditional loans in that you are not required to repay the advance unless you win or settle your case. This feature is what makes pre settlement funding an appealing option for individuals who need immediate cash but are unsure of how long their case will take to resolve.

The way it works is simple: a funding company evaluates your case based on its strength, your attorney’s involvement, and the anticipated settlement amount. If the company deems your case viable, they will offer you a cash advance. You can use this advance to pay for attorney fees, court costs, medical bills, or other necessary expenses while waiting for your case to settle.

How Pre Settlement Funding Helps Cover Legal Costs

Legal battles can be costly, and these expenses can add up quickly. Whether it’s paying your attorney, covering court costs, or dealing with medical bills, pre settlement funding can provide much-needed relief during a long legal process. If you do not have the financial means to cover these costs, pre settlement funding offers a way to keep your case moving forward without having to settle prematurely for a lower amount just to pay your bills.

- WHAT CLIENTS ARE SAYING -

In June, my wife and I asked our attorney about giving us a loan against any settlement proceeds from our case. He told us that the state bar does not

permit lawyers to participate in the financing of clients. The offer of settlement was very low so the case needed to be filed in court. I called Fast Funds. Within 24 hours, I had entered into an agreement with them, selling a very small portion of the anticipated proceeds to them in exchange for immediate financing. Now my suit is in court and I don't have to worry about money until it's outcome. Thank god for Fast Funds

B.G.

As a result of the advances you have made to our client, we were able to refuse an extremely low settlement offer and take the case to court. We settled the day of the trial for a very generous sum. Had there been no advances by Fast Funds, our client would have had no choice but to accept the inadequate offer since he was in severe debt due to his inability to work. Thank you for your helpful assistance in providing our client with the ability to persevere.

C.F.

I was involved in an accident which took my left leg. I was forced to live homeless for eleven months. Thanks to the Fast Funds people advancing money. I now live in an apartment,I am walking on a prosthetic and otherwise getting my life back together, even though my attorney has not yet settled my lawsuit. I don't know what I would have done for money because the insurance company has offered nothing so far.

A.R.S.

I was involved in an auto accident which caused me to suffer a herniated disc. Because of this injury, I was forced to miss many months of work. I had no income and no place or person to turn to for money. My attorney told me he was unable to help with any financing and the insurance company was refusing to settle the case. I turned to a company called Fast funds. They immediately reviewed my file and took the financial pressure off by providing me with interim financing. I am now able to wait for as long as it takes for my lawyer to achieve a successful result in my case. Without the financial involvement of Fast Funds, I don't know what I would have done.

K.P.

I wanted to thank you for your sensitivity in helping me cope through a very difficult time in my life. Without your help, I would have been unable to pay my rent , forcing my wife and children to be put on the street. I have not been able to return to work and I was tempted to accept the insurance company's very low offer to settle, even though I knew it was not fair or reasonable. You have given me the ability to withstand the financial pressures. Thanks for your help. I will never forget it

C.S.

I have in the past referred clients to Fast Funds Inc., a non-recourse company. The experience of my clients

and my firm were totally positive. Fast Funds was responsive to the clients financial and emotional needs, provided the necessary emergency money and did not interfere in any manner with my handling of the cases. The clients, without my input, negotiated the advance directly with the company. In each case, they were completely satisfied with the final result of the case, including the amount of profit earned by Fast Funds. Non-recourse funding is clearly a valuable tool to the plaintiff's attorney.

M.J.L.

"I am writing to recommend the valuable assistance of the Fast Funds Inc., a company that provided interim funding to financially needy clients. They help to insure that a case will be brought to a successful resolution. A good case in point is when I was offered $75,000.00 for a seriously injured client. Had she not been able to take advantage of the advance financing offered by Fast Funds, I would have been forced to take the money. As it turned out, because my client now had the financial ability to withstand the pressures of time, I tried the case to a jury and received a verdict of $315,000.00.

M.S.D.

It is my belief that non-recourse companies, such as Fast Funds, the company to whom I refer my needy clients, perform an invaluable service to both the client and the attorney. Simply put, it is common knowledge that one of the tools negotiation utilized by insurance companies is time. Offering

considerably less money than the actual case value to a client in desperate need of funds while the case is pending, gives the insurance companies a tremendous advantage. This advantage is minimized and the playing field is leveled when the client has the ability to obtain funds for a minimal portion of the anticipated proceeds. Many times, with no prospects of income, an injured party will settle the case for whatever offer is made.

R.J.F.

One of the major benefits of pre settlement funding is that it allows you to avoid using high-interest loans or credit cards to finance your case. Traditional loans and credit cards come with the burden of interest and repayment, which can add unnecessary stress to an already difficult situation. Pre settlement funding is repaid only if you win or settle your case, so it is a lower-risk option compared to traditional financial tools.

This funding option also allows you to avoid the temptation of settling your case early just to alleviate financial pressure. Many plaintiffs feel forced to accept a low settlement offer because they cannot afford to wait any longer. Pre settlement funding removes this pressure, giving you more time to pursue a fair and just settlement.

How Pre Settlement Funding Works

The process of obtaining pre settlement funding is relatively straightforward. First, you will need to apply for funding through a funding company. This is usually done by submitting basic information about your case and your attorney. The funding company will then assess the potential of your case, including the strength of your evidence, the likelihood of success, and the expected settlement amount.

Once your case is reviewed, the funding company will determine how much money you are eligible to receive. The amount offered will depend on various factors, such as the anticipated settlement amount and the length of your case. If you are approved, you will receive the funds, which can be used to cover your legal costs, medical bills, and other necessary expenses.

If your case results in a successful settlement or verdict, the funding company will be repaid from your settlement amount. If you lose your case, you do not need to repay the advance. This non-recourse feature is one of the major advantages of pre settlement funding, as it eliminates the financial risk if your case is unsuccessful.

Who Qualifies for Pre Settlement Funding

Pre settlement funding is available for a wide range of legal cases, including personal injury, medical malpractice, employment discrimination, and wrongful death. However, not all cases are eligible for funding. The primary factors that determine whether you qualify for pre settlement funding include:

The strength of your case: The funding company will evaluate whether your case is likely to result in a settlement or favorable verdict. The stronger your case, the more likely you are to qualify for funding.

Your attorney’s involvement: Most funding companies require that you have an attorney representing you in your case. This ensures that your case is being professionally handled and increases the likelihood of a favorable outcome.

The type of case: Personal injury, medical malpractice, and other tort cases are more commonly funded because they tend to result in larger settlements. Cases that are less likely to result in a substantial settlement may not be eligible for funding.

It is also important to note that pre settlement funding does not require a credit check, so your credit score will not be a factor in determining your eligibility.

Advantages of Pre Settlement Funding

Pre settlement funding can offer several benefits to plaintiffs who need financial assistance during their legal battles. Some of the main advantages include:

Immediate financial relief: Pre settlement funding provides you with quick access to the money you need. The application process is typically fast, and you can receive the funds within days, allowing you to cover your legal and living expenses without delay.

No risk to you: Since pre settlement funding is non-recourse, you are not required to repay the funds if you lose your case. The funding company assumes the risk, which makes this an attractive option for plaintiffs who are uncertain about the outcome of their case.

No impact on your credit: Pre settlement funding does not require a credit check, so your personal credit score will not be affected. This is especially helpful for those who have poor credit or are unable to secure traditional loans.

Allows you to wait for a fair settlement: Pre settlement funding enables you to hold out for a fair settlement without the pressure of financial burdens. Many plaintiffs feel forced to settle early just to cover their bills, but with pre settlement funding, you can focus on securing a just outcome without worrying about your immediate financial needs.

Considerations and Potential Drawbacks

While pre settlement funding can be an invaluable financial tool, there are some drawbacks that you should be aware of before pursuing this option:

High fees: Pre settlement funding companies typically charge fees for providing funding. These fees can be high, especially if your case takes a long time to resolve. The fees are generally a percentage of the advanced amount and are deducted from your settlement when it is paid out.

Impact on settlement amount: Since the funds are repaid from your settlement, you may receive a smaller payout once your case is resolved. Depending on the amount of funding you receive and the fees charged, this could significantly reduce the settlement amount you ultimately receive.

Not all cases qualify: Pre settlement funding is not available for all types of cases. If your case is weak or unlikely to result in a favorable settlement, you may not be eligible for funding.

Pre settlement funding can provide crucial financial support to plaintiffs who are facing the challenges of ongoing litigation. It allows you to cover legal costs and living expenses while waiting for your case to settle, and it provides immediate financial relief without the risk of repaying the funds if your case is unsuccessful.

If you are considering pre settlement funding, it’s important to carefully review the fees, understand the terms of the agreement, and consult with your attorney to ensure that this option is right for you. Fast Funds, Inc. can help you navigate the process and secure the funding you need to move forward with your case.

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