If you need money to pay for injury expenses but are currently waiting on funds from a personal injury settlement, a New Jersey personal injury lawsuit loan might seem like a viable option. However, lawsuit loans might have high interest rates, and you’ll be stuck paying them back if you lose your case.
Pegasus Legal Capital offers pre-settlement legal funding as a safe alternative to New Jersey lawsuit loans. Our funding mechanism can provide you with a non-recourse cash advance, allowing you to cover your expenses while you wait for your personal injury settlement to come through.
We have provided over $500 million in funding for thousands of clients since 2007. Contact us today to discuss options for New Jersey pre-settlement legal funding.
What Is Legal Funding?
Personal injury settlements can take months or even years to resolve. During that time, you still need to pay for things like medical bills and daily expenses. Legal funding is a way that you can access a part of your settlement early to pay for necessities.
The way legal funding works is you get an upfront cash advance you can use to pay for whatever you need. You can receive legal funding either pre-settlement or after a settlement is made, but before you actually receive the money.
Unlike traditional lawsuit loans, legal funding is a non-recourse type of borrowing, so you only have to pay back the money you borrowed if you win your settlement. If you don’t win, you won’t be personally liable for paying anything back.
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Why Legal Funding Can Be Better than Personal Injury Lawsuit Loans
Legal funding is a safer alternative to New Jersey personal injury lawsuit loans and carries several notable benefits:
Non-Recourse
Most importantly, a cash advance from legal funding is non-recourse, meaning you don’t have to pay it back unless you win your case. The collateral for legal funding is the settlement itself, so if you don’t receive a settlement, you don’t have to pay.
With a lawsuit loan, you have to pay the amount back regardless of the outcome of your claim. This means you could lose your case and then be stuck with an expensive loan in addition to your previously existing expenses.
No Credit Check
Lawsuit loans may require lengthy and expensive credit checks. Lenders can also have strict credit and financial requirements to qualify for a loan. If you don’t have a strong credit history, you may not be approved.
Legal funding doesn’t have credit checks. How much pre-settlement funding you can get depends entirely on the strength of your claim. If you have a strong case that you are likely to win, you can get approved for legal funding without a credit check or income verification.
Flexible Terms
Even if a bank approves your lawsuit loan, you can get stuck in a rigid repayment schedule with high interest rates and little flexibility. If you miss a payment, the loan could go into default, and you’ll be liable.
Legal funding has no repayment schedule or minimum monthly payment. You use the money when you need it and pay it back plus interest whenever you receive your final settlement. The flexibility can give you peace of mind knowing your expenses are covered.
Fast Access to Funds
Since there is no protracted application and vetting process, you can get access to pre-settlement funds quickly, often in as little as a few days. You can receive pre-settlement funds in the form of a check or as a direct deposit into your bank account.
New Jersey Laws Concerning Legal Funding
New Jersey doesn’t currently have any laws specifically addressing non-recourse lawsuit funding. However, the New Jersey Legislature is currently considering a bill (SB 1475) that would regulate the practice.
The proposed legislation outlines a number of requirements for legal funding contracts. Specifically, it would require the contract to state the total amount of the funding and give borrowers the right to cancel the contract without penalty within a specific time period.
Also, the law would require that legal funding contracts require the plaintiff’s attorney to sign a disclosure stating they are being paid on contingency and won’t receive a referral fee or other consideration from the legal funding entity.
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An Alternative to New Jersey Lawsuit Loans: Contact Pegasus Legal Capital Today
Personal injury lawsuit loans might seem like a decent idea to fund your pre-settlement expenses, but they have several pitfalls and disadvantages. With our New Jersey legal funding, you can pay for those expenses and not worry about complex loan terms from predatory lenders.
Do you have more questions about the differences between New Jersey personal injury lawsuit loans and our legal funding mechanisms? If so, contact Pegasus Legal Capital today to see how our pre-settlement personal injury funding can help you.
Your pre-settlement funding consultation is free — contact us today!