How Pre-Settlement Funding Can Help You Avoid Accepting Low Offers

How Pre-Settlement Funding Can Help You Avoid Accepting Low Offers

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Pre-settlement funding can be a valuable tool for plaintiffs in personal injury cases, helping them avoid accepting low settlement offers by providing financial relief during the litigation process. Here’s how pre-settlement funding works and its benefits in this context:

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How Pre-Settlement Funding Works

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Pre-settlement funding involves a third-party company advancing funds to a plaintiff based on the expected settlement or judgment of their case. This funding is non-recourse, meaning the plaintiff only repays the advance if they win the case or receive a settlement. If the case is lost, the plaintiff owes nothing.

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Application Process

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1. Case Evaluation: The funding company assesses the merits of the case, including the likelihood of winning and potential settlement amount.
2. Approval and Agreement: If approved, the plaintiff and their attorney agree to the funding terms, including the advance amount and fees.
3. Receiving Funds: The plaintiff receives the agreed-upon funds, typically within a few days.

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Benefits of Pre-Settlement Funding

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1. Financial Relief: Provides immediate financial support for medical bills, living expenses, and other costs while the case is pending.
2. Enables Fair Settlements: Allows plaintiffs to reject low offers and wait for a fair settlement, as they are not under financial pressure to accept a quick resolution.
3. No Risk: Non-recourse funding means no repayment is required if the case is lost, protecting plaintiffs from additional financial burden.
4. Flexibility in Use: Funds can be used for any expenses, including medical bills, rent, and daily living costs.

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Pre-settlement funding offers a risk-free financial lifeline to plaintiffs in personal injury cases, enabling them to pursue fair settlements without the pressure of immediate financial needs. By providing financial stability, it empowers plaintiffs to negotiate more effectively and avoid accepting lowball offers.

If you need assistance with pre-settlement funding or have questions about navigating low settlement offers, Hall & Dixon is here to help. Their experienced legal team specializes in personal injury cases and can provide tailored guidance to ensure you receive the compensation you deserve. Contact Hall & Dixon today for expert support in handling your personal injury claims in North Carolina.

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Read: The Role of Mediation in Resolving Lowball Offer Disputes

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