When you are injured in a car wreck, at work, due to medical malpractice or in any other situation caused by the negligence of another party, it can cause financial devastation. You may be hospitalized for a prolonged time period, unable to file a claim until you are back on your feet. If you are unable to work, your income is reduced. Settlement loans help those who have been injured pay bills, medical costs and other expenses while awaiting settlement from the insurance company or through jury award. If you are not familiar with settlement funding, this article will help clear up some of the questions you may have.
Insurance companies generally do not pay injury victims the fair compensation they are entitled to. If you are receiving medical treatment and unable to work, you can imagine the costs you face, and how they may quickly escalate until you have no financial resources left. Settlement loans allow you to live comfortably and pay your bills whether you or your attorney are working with the insurance company, or have taken your case before a jury to be settled. Unlike other conventional loans, settlement funding is a quick and easy process; in fact, you could have your money the same day you apply if you qualify.
You may be thinking, “If I already have problems paying my bills, how can I possibly repay a loan?” With settlement loans, the money given to you by the litigation funding company is actually an advance against your pending settlement. You do not repay the money unless you win your case, and there are no monthly payments to worry about. In the event that you are not awarded a settlement, you owe nothing to the settlement funding company, because the process is non recourse. This means that you are at zero risk, unlike with conventional loans where you may default on the loan.
With settlement loans, there’s a very good chance you will qualify as long as you have a solid case. Your attorney will submit the necessary information, which is regarding only the details of your accident and injuries. There are no questions about employment, credit history or other background information. Settlement funding companies are not interested in other aspects of your life, only your case. There are no out-of-pocket expenses involved to further aggravate your debt; you repay the loan only at the time you win and have access to your money.
Typically, settlement loans allow you to get an advance of approximately 10% of your pending settlement. This money can be used to pay household bills, buy groceries, have repairs to your car if it was damaged in the accident that caused your injuries. You can focus on healing and winning your lawsuit, without worrying about how you will put food on the table and pay the bills.
Settlement funding is the easiest – and smartest – way to get the money you need right now, without putting yourself at risk. Are settlement loans right for you? Talk to your lawyer about the process, and whether it may be beneficial for your unique situation.