Who Qualifies for Pre-Settlement Funding?

Pre-settlement funding is not available to all plaintiffs. This article outlines the qualification criteria for pre-settlement funding, helping plaintiffs understand if they are eligible and what factors are considered during the application process.

Eligibility Criteria

1. Type of Case
   • Funding companies typically finance personal injury cases, including car accidents, medical malpractice, slip and fall incidents, and product liability claims.
   • Other types of cases, such as employment disputes, class action lawsuits, and wrongful death claims, may also qualify.
2. Merits of the Case
   • Liability: The defendant's liability must be clear or strongly supported by evidence.
   • Damages: The plaintiff must have suffered significant damages, such as medical expenses, lost wages, and pain and suffering.
   • Ability to Pay: The defendant must have the financial ability to pay the expected settlement or judgment.
3. Legal Representation
   • Plaintiffs must be represented by an attorney. Funding companies rely on the attorney's input to evaluate the case and determine its potential success.
4. Case Status
   • The case should be in progress, with ongoing legal proceedings. Pre-settlement funding is not typically available for cases that have already settled or been dismissed.

Evaluation Process

1. Initial Application
   • Plaintiffs provide information about their case, including details of the incident, injuries sustained, and contact information for their attorney.
2. Case Review
   • The funding company reviews the case details and consults with the plaintiff's attorney to assess the strength of the case and the likelihood of a favorable outcome.
3. Approval Decision
   • Based on the evaluation, the funding company decides whether to approve the application and how much funding to offer.

Common Reasons for Denial

1. Weak Case: If the case lacks strong evidence or clear liability, it may be denied funding.
2. Insufficient Damages: Cases with minimal damages may not qualify for funding.
3. Defendant's Financial Instability: If the defendant is unlikely to pay the settlement or judgment, funding may be denied.

Qualifying for pre-settlement funding depends on several factors, including the type of case, its merits, legal representation, and case status. By understanding these criteria, plaintiffs can better assess their eligibility and pursue funding if appropriate.