Although the term implies it is a loan, settlement loans are actually cash advances given to injured victims who are awaiting settlement and qualify. Another term for the process, litigation funding, is just what it sounds like – funding for your lawsuit, so that you can live as you normally would and pay your bills while waiting for your case to reach completion.
As an injured victim, you may already realize the financial impact your injuries are having on your live, especially if you cannot work. Between the medical expenses, lost income, paying the normal monthly bills and buying groceries, you may be going broke. Personal injury lawsuits commonly take months or even longer to settle; in the meantime, how can you avoid bankruptcy and meet your financial obligations? Settlement loans are the ideal solution for many who find themselves in this situation.
Settlement loans are easy to qualify for, as long as you have a solid claim. The litigation funding company will never ask you for information regarding your credit score, past or current employment or other personal data. All they are interested in are the circumstances surrounding the accident that caused your injuries, and how serious your injuries are. When the funding company feels strongly that your case will win and knows your attorney supports your claim, you’re likely to qualify for a loan. Learn more about Pre-settlement funding here.
The loan is basically an advance against the money you expect to win in a lawsuit, or through settlement with the defendant’s insurance company. In most cases, you can expect to receive about 10% of your settlement in advance if you are approved. While this may not sound like a great deal, several thousand dollars can go a long way toward paying the bills and keeping your head above water.
If you do qualify, you will get your money very quickly. In most cases, those who are approved for settlement loans get their money within 24 hours, and the process is quick and easy. You and your attorney will sign off on the application which only asks about the information mentioned above regarding your accident and injuries. In addition, you only repay the loan when you actually receive your settlement or jury award, so there are no out-of-pocket expenses to add to your financial worries. If you do not win, you do not repay the funding company – it’s that simple.
You can find out more about settlement loans online, or have your lawyer briefly explain how it works. Pay your bills, live comfortably and put the stress of worrying about how you can meet your financial obligations aside with litigation funding.