Why wasn’t my application for pre-settlement funding approved?
There are many factors that are considered when evaluating your case for an advance. The 3 primary factors considered are Damages, Liability & Insurance.
- Damages – this is what injuries you were caused because of this accident, but also can be income you lost because of having to miss work or being fired.
- Liability - this is determining who is at-fault for your accident. It is also possible that each party involved is partially at fault for the accident in some form of a split.
- Insurance – in most cases the most money you can hope to receive from your settlement will depend on the amount of insurance the at-fault party has. It is possible for some cases to receive more than the insurance policy limits, but not common.
If any of these factors are not satisfactory, your application for funding may be denied. Other reasons could be:
- Pre-existing injuries – this is if you have had prior accidents that caused similar injuries and the new accident exacerbated those conditions.
- Prior-funding – you may be denied for an advance because you have received funding in the past and the amount you owe is too large for a new company to payoff for you. You are not permitted to have more than 1 company advance you money on your case at a time. That means that if you have received funding in the past and apply with a new company, that company must first pay-off your prior advance before giving you a new advance.