8 Hacks to Know About Legal Funding in California
If you have been involved in an accident that is not your fault and if you have hired a personal injury lawyer to fight for compensation, you may qualify for lawsuit advance from Legal Funding Companies in California.
Filling a lawsuit for personal injury case might be intimidating because we all know how expensive lawsuits can be. However, you do not need to back down from your litigation in fear of finance shortages. If you didn´t know, there are Legal Funding Companies that will provide you with a cash advance that will help you overcome your overwhelming financial crisis.
If you are looking for Legal Funding in California read this article and find out eight (8) hacks that will help you better navigate through the process.
1. Is Legal Funding in California Different from Other States?
It can be confusing and stressful when you start the research for Legal Funding in general. First of all, let´s clarify that Legal Funding provides cash advances that can also be found under following names: lawsuit financing, lawsuit cash advance, lawsuit loans, settlement loans and lawsuit lending.
Whichever of the above terms you come across in your research, they all stand for basically the same thing: a cash advance is a certain amount of money given to a plaintiff who is involved in a personal injury litigation process for his/her use. The money you receive from Funding Company can be spent for whatever purpose you may need it including covering your household bills, medical treatments, dentist and so on.
After conducting the interstate research for Legal Funding Companies and looking for the following elements that are most important when you are getting a cash advance from a Legal Funding Company: types of cases that are covered by lawsuit advance, response time, application process, underwriting fees, interest rates, administrative procedures and money delivery time, companies offering legal funding in California are very similar to companies based in other states.
2. How Legal Funding in California Works?
Legal Funding is expanding rapidly and you may have heard about it from a friend or you may have seen short commercials on TV or Internet. Nonetheless, borrowing the money from your future legal settlement award may seem a bit fuzzy and complicated. Therefore, make sure you learn all you can about Legal Funding. Use all the sources available and never hesitate to ask questions.
You may not believe it but getting a Legal Funding is very simple. You may qualify for Legal Funding if the accident you have been involved in is not your fault, you suffered a physical injury, and the person responsible for the accident has insurance to pay for any claim.
Once the Legal Funding Company collects all the documentation, they underwrite your case and determines the merits of your case. As mentioned, the underwriting team of experts evaluates your case based on three general facts: damages (the injuries you suffered from the accident, lost wages, etc), liability (who is responsible for the accident) and insurance (the amount of money that obligor´s insurance covers).
The most important thing you need to know about Legal Funding is that it is a non-recourse loan transition. Which means, you are only obliged to pay back the arrange percentage if you win the case, and only if you win your case. This 100% risk free Legal Funding will for sure give you the means and strength to hang on during your lawsuit.
3. How to Get Legal Funding in California?
The process of getting Legal Funding in California is as simple as in any other state. Finding Legal Funding Company that you can trust will require some of you time, good perception and quality decision making.
Before you make your final decision about Legal Funding Company look for good, reputable Legal Funding Company. Make sure their professionalism is mirrored in every aspect of their work. Find the Legal Company that instills trust, that respects you and understand your problems. Contact each Legal Funding Company you may be interested in alwaysfeel free to ask if anything might seem ambiguous to you.
When you have chosen a Legal Funding Companies to work with, make sure you have all of your relevant case information; i.e., copies of all the correspondence, notices, medical bills and records. The better you are prepared the faster your money request will go.
When the representative of Legal Funding Company gathers all the documentation relevant to your case he/she forwards it to the underwriting team. As I have mentioned in the lines above, the underwriting team evaluates your eligibility.
Assuming they can speak with your attorney and can review your case documents, a Good Legal Funding Company can determine if the can fund you the very same day you apply. If they approve your case for funding, make sure you check that your written agreement concurs with any verbal agreement that you have made with the representative of Legal Funding Company.
If you find that everything is in order, sign the agreement, and usually you can receive the funds in a matter of hours or overnight. Please note that most Legal Funding Companies do not require you to have a bank account.
4. How Fast Can You Get Legal Funding in California?
If you have found a trustworthy Legal Funding Company how fast you can get your money depends merely on you and your lawyer.
Legal Funding is approved based on overall assessments of your case. It is very important that you know as much about your case as possible. Your knowledge and your good organizational skills will lead towards a quick Legal Funding decision.
Good organization has always been a time saver so make sure that you keep you case file detailed, clean and labeled. These are some of the relevant paperwork you need to have in your case file, all labeled and in order:
- correspondence (letters or notices between you and the insurance company, the at-fault person and all other case relevant email correspondence),
- medical bills and records (all the records in regard to medical and mental healthcare including dental treatments, hospital and doctor bills, prescription medication and all other records and bills),
- property damage and wage verification documentation.
The longest period of time in getting your Legal Funding approved goes for underwriting assessment. The pillar of every Legal Funding Company is their Underwriting Team. This team consists of employees with various types of expertise: law, insurance, and finance.
In order to offer a variety of financing solutions that might be suitable to fit a plaintiff´s case, the Team must evaluate numerous factors such as: damages, liability and insurance.
5. What is the Minimum and Maximum Amount for Legal Funding in California?
It is important to know what type of fees a Legal Funding Company offers before you sign a contract regardless of how much money you may need.
Generally speaking, the amount approved will be a percentage of the estimated final settlement, usually between 10% to 20% of the expected case value. So for example, if you case is worth $20,000, you can be approved up to $4,000.
Most Legal Funding Companies will fund $500 at a minimum, but can fund significantly higher amounts, in the hundreds of thousands of dollars, in those cases that warrant it.
6. What are the Typical Fees You Can Expect for Legal Funding in California?
The amount the Funding Companies charge can very greatly. Some only charge a basic rate, while others charge that basic rate plus additional fees, such as an application fees, and underwriting fee, a servicing fee, and the list goes on. Always keep in mind that lawsuit for personal injury cases last for at least two years and take that into consideration when you calculate the fees on monthly or annual basis. Be very careful when you come by a Legal Funding Company whose fees are expressed in percentage of 2% to 3% with no cap. Raise the red flag immediately and ask for a detailed fee break down. That 2% to 3% is not an annual rate but a monthly rate.
When you search for Legal Funding Companies your first question should always be about fees and rates. Many Companies will try to sell you on a low rate but then add on a bunch of fees.
You will also find that Legal Funding Companies use different techniques to calculate the amount due from their clients. These techniques include various types of interest compounding, minimum interest period and fees or a periodic multiplier. Almost every Legal Funding Company will give you a range and for you it is important to know that they are most often given in a monthly compounded rate. It is good idea to ask for scheduled interest charges for at least next 24 months.
7. Should You Consult Your Lawyer Prior Getting Legal Funding in California?
Yes. In fact, your attorney must sign a letter of agreement after reviewing the legal funding contract, to state that he will pay the legal funding company back out of the proceeds of the case.
Do not forget that it is your attorney who knows more about your case than anybody else. Also, your lawyer is a person who has more experience and has dealt with cases that are similar to yours or with persons that have been in similar situation as you are now. In addition, he/she has probably had experience with Legal Funding Companies that you are interested in. Your lawyer can give you advice, and clarify anything that might be uncertain when it comes to interests and fees and also they can point out which Legal Funding Company has been known for a good or bad reputation.
Many plaintiffs trust their lawyer to handle the paperwork for them and to be the key person in dealing with Legal Funding Companies. In addition, your lawyer is a keeper of all the documentation that is important to you case and therefore unavoidable information resource.
8. How to Select the Best Legal Funding Company in California?
So far we have talked about the Legal Funds itself, how to get one, how does it work, what are the minimum and maximum amounts and what to look for in regard to interests and fees.
However, choosing the best Legal Funding Company depends on your overall opinion about the certain company.
In order to find the best Legal Funding Company that suits you and your interests you must look for the following: that Legal Funding has good reputation (ask the lawyer for his/hers opinion, search for references); that they have low interest rates (interest rates and fees that are clearly stated and that they do not have any hidden fees); that you feel appreciated, secured and respected.
If you feel that you have found a solution to your financial problems and that you can trust a Legal Funding Company then it will be an easy decision.
Plaintiffs from California who are in the middle of a lawsuit process and in need of extra cash to overcome the financial gap until their case is settled can look for a solution in the Legal Funding Industry.
There are Legal Funding Companies which unscrupulously take advantage of a plaintiff’s situation so you need to be extra careful when you are searching for one. As mentioned, pay attention to the rates and fees, as there can be misconceptions of the overall pay back amount. Look for the Legal Funding in California that has good reference and is known for good reputation.
We at Fastcash Legal treat our clients with maximum respect and courtesy. Visit our website https://fastcashlegal.com/ and find all you need to know about the eligibility, application process and more, or call our agents at (844) 213-1116, we are there for you!
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- No credit checks
- If approved, you can get your cash in 24 hours
- If you lose your case, you owe nothing
- There is no obligation if you apply then decide not to take the funding