Do Lawyers Give Advances on Settlements?
Waiting to receive a settlement puts you in a precarious spot. You may be in line to receive tens of thousands of dollars, or even hundreds of thousands of dollars in compensation for your injuries and other damages you’ve suffered. And if the case goes well, you might be able to settle early and win that money without ever going to trial.
But even in the best-case scenario, you’ll likely be forced to wait months before getting your money. Attending medical appointments, taking care of your family, and just trying to live your normal life can all become instantly more difficult without access to the money you need – and if you’re currently out of work, everything gets that much more stressful.
Because of this, you may be interested in getting an advance on your settlement through your lawyer. But is this even possible? And how can you do it?
Your Lawyer’s Role
Your lawyer has several responsibilities. They’re responsible for researching your case, compiling evidence, negotiating with insurance companies, preparing a pleading, initiating and managing discovery, and even representing you at trial. Their primary goal is to help you win as much compensation as possible in your personal injury case, through whichever means they feel are best to do it. Throughout the process, they’ll be giving you advice, providing you with direction, and ultimately helping you win your lawsuit and secure a settlement.
If you find a good lawyer, they’ll genuinely want to help you in whatever ways they can. They may provide you with advice outside your case (like helping you get your finances in order) or connect you with other resources you can use to improve your personal situation. However, they’re not obligated to do this and you shouldn’t expect this from them.
Lawyers and Settlement Advances
Your lawyer is not responsible for your personal finances, nor are they allowed to give you an advance on your settlement directly. However, they may be able to connect you to a settlement advance provider.
A settlement advance, in case you aren’t familiar, functions like a typical advance, and somewhat like a loan. When you have a settlement coming your way, you can apply for a settlement advance. Typically, the application process is short and sweet; you’ll just need to provide a few details about yourself and your case. If you qualify, you’ll receive funds based on your projected settlement amount, usually within a day or two. You can spend this money however you want, paying for your household bills, your medical expenses, or anything else you want or need. When you get your settlement in hand, you can pay this advance back plus any fees you owe for the financial service. Additionally, most settlement advances are non-recourse – meaning you won’t owe anything if you don’t end up winning a settlement.
Obtaining a Settlement Advance
As you can see, obtaining a settlement advance isn’t difficult; you just can’t get one directly from your lawyer. As long as it looks like you have a high likelihood of winning a settlement in the near future, and you have a good lawyer on the case, you’ll likely qualify for at least some funding.
The most important and most intensive part of the process is evaluating different settlement advance providers so you can be sure you’re getting the best terms. There are many different providers available, and not all of them operate ethically or with their clients’ best interests in mind. Make sure you do your research before submitting an application.
Getting Your Lawyer’s Advice
Your lawyer will not be able to provide you with a settlement advance directly, but they should be able to provide you with some insights related to getting a settlement advance. They may refer you to a specific settlement advance provider or give you some tips you can use to find the best settlement advance you can.
If you’re searching for a settlement advance on your own, there are several things you’ll need to evaluate, such as:
- Company reputation and reviews. If a settlement advance company is a scam, you’ll figure it out quickly by looking at past reviews and the company reputation overall. If there’s a long history of satisfied customers and good reviews all-around, you can probably trust it.
- Type of fees. Does this company charge an interest rate on their settlement advances? Or do they charge a flat fee? Generally speaking, flat fees tend to be less expensive and more manageable.
- Amount of fees. An interest rate may be reasonable if it’s small enough but a one-time fixed-fee is typically best. Be sure to crunch the numbers and figure out exactly how much of an impact your decision is going to make on your finances, both now and in the future.
- The application process. What is the application process like? If you need the money, this may not be much of a concern, but the application shouldn’t be intensive or invasive. You should only need to provide a few pieces of information; if you’re prompted for a credit score, you may want to pass.
- Communication. Are these lenders easy to get in contact with? Do they answer your questions straightforwardly and transparently? If the company is hard to communicate with, or if they dodge your questions, you may want to find a different organization to work with.
- Funding availability. How much funding do you qualify for? And how quickly will you be able to get it? Your settlement advance provider should be able to get you the money within 24 hours, once approved.
Your lawyer can help you throughout the litigation process, connecting you with other resources and providing advice. Ask your lawyer if they have a recommendation related to settlement advances. At Capital Now Funding, we work with lawyers all over the country to provide plaintiffs with pre-settlement funding, so if you choose us, you'll be in good hands. Apply now to get started!