Pre-Settlement Funding Fact Sheet
Peachtree Financial Solutions (“Peachtree”) provides pre-settlement funding to plaintiffs with unsettled lawsuits, thereby providing them with some liquidity while they await settlement proceeds. Most common in personal injury cases, this option allows the claimant to execute their case without the pressure to settle quickly due to financial reasons.
Why would an individual pursue pre-settlement funding?
- Pre-settlement funding can be beneficial when a plaintiff has a pressing medical need, is unable to work as a result of the claimed damages, or is unable to meet basic living expenses during prolonged litigation.
- Pre-settlement funding provides needed cash to the claimant to lessen the pressure on them, while they are pursuing their case.
What cases or claims are eligible for funding?
- Peachtree will only work with established and experienced law firms.
- The claim must be in an eligible state, have strong liability, and clear damages.
What is the cost?
- Our fees include a competitive, 2.95% monthly compounding fee on the amount funded (which will include a one-time $75 document preparation fee). Our total overall fees are capped at 250% of the amount funded, regardless of the term of the funding.
- When providing pre-settlement funding, a portion of the potential proceeds from any claim are purchased by Peachtree, subject to a minimum transaction amount of $500 and a maximum of 20% of the expected recovery from the lawsuit, after fees.
- For example, a plaintiff with a claim valued at $100,000, has the option to receive a minimum of $500 and a maximum of $20,000. If the claim or case is unsuccessful, nothing is owed to Peachtree by the claimant. If the claim is successful, the amount funded, plus fees, are due to Peachtree.
What is the process of obtaining pre-settlement funding?
- To obtain pre-settlement funding, customers must contact Peachtree to speak with a representative who will assess the nature of their case.
- Once a Peachtree representative has assessed the case, the attorney representing the case must then submit an application on behalf of the customer.
- Peachtree reviews each case individually, evaluating the claimant’s attorney’s history, insurance provider, liabilities, medical records, and incident reports.
- If the application is approved to go forward, an assignment agreement is sent to the attorney, which will then be executed by Peachtree and the claimant. Rules and procedures vary depending on the state, and funding is not available for all types of cases in all states.
- Upon approval and receipt of required documents, Peachtree can often process pre-settlement funding within 24 hours.
Where can I learn more?
Funding is offered by Peachtree Funding Northeast, LLC and is not available in every state.