When you’ve been injured, you deserve to get a fair settlement from the insurance company. But, occasionally, life circumstances can get in the way and keep you from getting the settlement you are entitled to receive. Legal funding, also known as pre-settlement funding, is designed to help you have enough cash to cover your bills and expenses while your attorney works on your trial.
There are a lot of myths and misunderstands about legal funding and how the process works or what is expected of you. Make sure you take a closer look at a few common legal funding myths and learn what’s fact and what’s fiction.
Myth 1: Even if you don’t win your lawsuit, you have to repay your funding
A major misconception about legal funding is that it is a loan. Some even compare it to payday loans, which have incredibly high-interest rates. The truth is, legal funding from Cherokee Funding is not a loan. Instead, it is a non-recourse cash advance. You only need to repay the amount you receive if and when you are awarded a settlement. If you do not win your lawsuit, you are not responsible for paying back your funding, ever.
Myth 2: Legal funding takes advantage of you
Some people think that legal funding exploits people when they are in a tough spot. In fact, it does the opposite. Funding helps you make ends meet when you are unable to work because of an injury or when you have high medical bills due to an injury. Instead of expecting you to repay the money when you can’t, reputable funding companies such as Cherokee Funding only take if and when you receive a settlement.
Additionally, a reputable funding company won’t give you such a high advance that repaying it will wipe out your entire settlement. The average funding amount from Cherokee, for example, isn’t more than 15 percent of the expected settlement. It’s enough to help you pay your bills, but not so much that you have nothing left over when you receive your settlement. Remember – you want as much cash left at settlement as possible.
Myth 3: You’ll be pressured into a settlement if you get legal funding
Another common myth about pre-settlement funding is that the funding company pressures plaintiffs into taking a low-ball settlement so that the company can get its money back. The intent of pre-settlement funding is to give you cash to pay bills so that you can wait for a bigger settlement. A funding company who is a good steward wants what is in your best interest and will help you get the best settlement possible by giving you the cash to support yourself while you wait.
Myth 4: You need to jump through a lot of hoops to get funding
If you have a solid case, it’s likely that you’ll be approved for legal funding. When you apply for the funding, Cherokee reviews the facts of your case and decides whether to give you an advance or not, and how much to advance you. Once you’re approved, you can expect to receive your money quickly, usually within 24 hours.
Don’t write off legal funding because of rumors or myths you might have heard. Get the full story about funding and learn more about how it can help you while you wait for your case to go to trial. Contact us at Cherokee Funding for more details and to learn how to apply today.