North Carolina personal injury pre-settlement funding is a financial service that gives plaintiffs cash advances while their cases are still pending. For many, this funding helps cover expenses like medical care, rental payments, and living costs while waiting for a settlement or judgment.
Unlike a loan, pre-settlement funding is a non-recourse cash advance, meaning you only have to repay the funds you receive if you win your case. For those who are struggling to stay afloat financially after filing a personal injury claim, this type of funding may offer some relief.
It’s normal to feel stressed and uncertain during this process, but you don’t have to face it alone. Instead, reach out to Pegasus Legal Capital for more information about your personal injury pre-settlement funding options. We’ve been helping people in your position since 2007.
Understanding Pre-Settlement Funding
Pre-settlement funding is fundamentally different from traditional loans. It is a non-recourse advance, meaning repayment is contingent upon the successful resolution of the case. If the plaintiff does not win or settle, they typically do not owe any money to the funding provider.
This makes pre-settlement funding an attractive option for individuals who need financial support but may not qualify for conventional credit options. In North Carolina, pre-settlement funding is treated under regulations governing advances against anticipated legal proceeds.
While not considered a loan in the traditional sense, these advances are regulated to protect plaintiffs from excessive fees or deceptive practices. Companies like Pegasus Legal Capital structure funding agreements in compliance with state statutes and consumer protection laws.
Schedule your free consultation today 855-386-3968
How Pre-Settlement Funding Works
The process for obtaining pre-settlement funding generally involves these steps:
- Application and case review: The plaintiff provides information about the personal injury case, including medical records, proof of lost wages, and details regarding the claim. Pegasus Legal Capital evaluates the case’s merit and the likelihood of settlement.
- Risk assessment and funding amount: The company determines a funding amount based on the estimated settlement value, case type, and stage of litigation. This ensures that the advance is proportionate to potential recovery.
- Contract and disclosure: A written agreement outlines the funding amount, fees, repayment terms, and any applicable interest. North Carolina law requires clear disclosure to avoid usury violations or hidden charges.
- Disbursement of funds: Once the agreement is signed, the plaintiff receives the funds quickly, sometimes within 24 to 48 hours, providing immediate financial relief.
- Repayment contingent on settlement: Funds are repaid from the settlement proceeds once the case is resolved. Non-recourse agreements ensure that plaintiffs are not responsible for repayment if the case is unsuccessful.
This process allows plaintiffs in North Carolina to maintain financial stability during often prolonged litigation without taking on conventional debt.
Types of Personal Injury Cases Eligible for Funding
Pre-settlement funding is commonly used in personal injury cases where plaintiffs have a strong claim and a reasonable expectation of recovery. In North Carolina, common case types include:
- Motor vehicle collisions: Car, truck, motorcycle, and pedestrian accidents often result in medical expenses and lost wages. Funding can provide financial relief during the lengthy claims process.
- Slip and fall incidents: Injuries from falls on commercial or residential property may require medical treatment, rehabilitation, and time off work.
- Workplace accidents: Injured employees may face delayed workers’ compensation or civil claims settlements, making pre-settlement funding essential for maintaining financial stability.
- Medical malpractice claims: These cases can take years to resolve, and funding helps cover medical bills, expert consultation fees, and living expenses during litigation.
- Product liability cases: Injuries resulting from defective products may involve extended investigations and prolonged legal proceedings, creating a need for interim financial support.
The type of personal injury case affects the funding amount and fees, as cases with higher expected settlements typically qualify for larger advances.
Click to contact us today
Regulatory Considerations in North Carolina
North Carolina regulates pre-settlement funding to protect plaintiffs and ensure transparency. While not classified as a loan, these advances are subject to state consumer protection laws and contract statutes. These are regulations worth keeping in mind:
- Disclosure requirements: Companies must clearly outline the total fees, repayment terms, and contingencies involved in the agreement. Plaintiffs should be aware of the full cost of funding before signing anything legally binding.
- Non–recourse structure: Agreements must specify that repayment is contingent upon a successful settlement or judgment. This prevents plaintiffs from being pursued for repayment if their case ends up being unsuccessful.
- Interest and fee limitations: While pre-settlement funding is not technically a loan, excessive fees or disguised interest may run afoul of North Carolina usury laws or unfair trade practices statutes. Funding companies structure their agreements to avoid these violations.
- Consumer protections: North Carolina law provides remedies for deceptive or misleading practices, ensuring plaintiffs have avenues for recourse if terms are misrepresented.
Please note: Because of state regulations, our company can only provide pre-settlement funding in North Carolina for amounts greater than $25,000.
Your pre-settlement funding consultation is free — contact us today!
Call Pegasus Legal Capital for More Information About Personal Injury Pre-Settlement Funding in North Carolina
Are you or someone close to you having a hard time affording your everyday expenses while waiting for a personal injury settlement? If so, you don’t have to figure all of this out on your own. It can be hard to balance your finances in the aftermath of the incident that hurt you.
Thankfully, with the help of Pegasus Legal Capital, you can rely on professionals to provide you with dependable pre-settlement funding and straightforward guidance. We’re here to help plaintiffs across the country manage the waiting period with peace of mind.
Don’t wait any longer to find out what’s available to you. The sooner you contact us, the sooner we can walk you through the process and help you decide the right next step for your situation. Reach out today—we’re ready to help.
Your pre-settlement funding consultation is free — contact us today!