The medical and living expenses that pile up while you wait for your personal injury case to settle can become financially devastating. A lawsuit loan can ease the strain by providing you with immediate cash.
Lawsuit loans, also known as pre-settlement or consumer legal funding, are based on the strength of your case. Unlike other types of debt, they are nonrecourse and do not require credit checks.
Medical Expenses
The medical expenses associated with a personal injury claim can be high. Plaintiffs can rely on lawsuit loans or pre-settlement funding (or consumer legal funding) to cover these costs and provide them with a cushion during litigation.
It can take years for a personal injury case to reach its conclusion. In the meantime, bills and debts begin to pile up. Unless the injured party has substantial savings or access to credit cards, they can struggle to keep up with their financial obligations.
Injured plaintiffs often face a difficult choice: settle early for less than they deserve or fight for the total amount of their compensation. Well-counseled defendants are aware of this fact and exploit the plaintiff’s desperation by making lowball offers, knowing that the plaintiff will be compelled to accept out of necessity.
Lawsuit loans level the playing field by providing plaintiffs with the financial resources to resist pressure to settle early. As such, a lawsuit loan can help plaintiffs hold out for a higher settlement or even take their case to trial if necessary.
Mortgage or Rent Payments
The resolution of a lawsuit may take months or even years. In the interim, injured parties frequently have a lot of bills to pay, including rent or mortgage, car, credit card, utility, and other daily costs. Obtaining personal injury lawsuit loans can assist litigants in escaping financial ruin by providing the necessary funds.
Unlike traditional loans, legal funding companies don’t qualify applicants based on their employment status, income, or credit score. Instead, they offer pre-settlement legal funding based on the strength of the case and its anticipated value.
The best lawsuit loans are nonrecourse, meaning that if the case is lost, the borrower does not have to repay the amount borrowed. However, it is essential to remember that the lender will only be paid from a judgment or settlement – not from any existing funds or assets. For this reason, it is essential to carefully consider your options and choose the right personal injury lawsuit loan for you. Be sure to work with a company that understands the unique aspects of your case and is dedicated to providing you with fair and transparent pricing.
Living Expenses
Injuries from a car accident or medical malpractice can leave you unable to work and struggling to pay your bills. A lawsuit advance or settlement loan can ease the pressure and give you the money you need to make ends meet while your injury case is pending.
Lawsuit loans can be used for almost anything, but the most common uses cover medical expenses, mortgage or rent payments, and living expenses. There are no restrictions on how you use the money, and most companies allow you to obtain multiple rounds of funding if needed.
It can take years for a personal injury case to settle, and during that time, you’re likely to face mounting medical bills and other financial obligations. Before you agree to a lawsuit settlement loan or advance, consider your alternatives.
Lawsuit loans allow plaintiffs to afford their monthly bills and expenses without relying on the money they may receive once the case is resolved. This removes the financial stress that often drives a plaintiff into accepting a low settlement offer from the insurance company. The option to decline this offer and dig in their heels allows them to fight for a better outcome to their personal injury claim.
Living expenses include ER visits, medication, physical therapy, rehabilitation, pain management center appointments, mortgage or rent payments, and other day-to-day living costs. If someone is not working because of their injuries, they cannot earn money to pay these bills. Lawsuit funding companies can provide the cash advance needed to cover these expenses and avoid the risk of foreclosure, eviction, or losing the ability to maintain essential utilities such as electricity and water.
Lawsuit funding is only available once a plaintiff has secured an attorney to represent them on their claim. The attorney must agree to work with the lawsuit funding company and be willing to provide documentation supporting the claimant’s ability to repay the loan.
Car Loan Payments
If you are a plaintiff in a personal injury lawsuit or heir to the estate of a deceased loved one, waiting for your case to settle can be financially devastating. Lenders and specialized finance companies offer cash advances, or lawsuit loans, to plaintiffs in personal injury cases. Understanding how these loans work and shopping for the best terms is essential. Beware of brokers and deal directly with a funding company.
Lawsuit loans have more lenient borrowing requirements than traditional lending arrangements. They do not typically consider a borrower’s creditworthiness, employment status, or valuation of their assets. In addition, legal funding is nonrecourse, meaning that the loan will only be repaid from the settlement proceeds or verdict awarded to the plaintiff.
Lawsuit loans can help cover expenses related to a personal injury case, but you should only consider this option after working with an attorney and filing your suit. Otherwise, getting caught up in financial debt and losing a substantial settlement is easy.