You may have heard of personal injury loans and never really paid much attention; now you’ve been injured due to negligence, and are involved in an injury lawsuit. Medical costs are substantial, you may be unable to work, and you’re falling farther and farther behind on the bills. Personal injury loans may be the best solution for you, but that is something you and your attorney will have to determine. If you want to learn more about settlement funding, the information you need is below.
Actually not a loan, personal injury loans are more of a cash advance against the money you expect to win in your lawsuit. In most cases, those who are approved can expect an advance of approximately 10% of your expected winnings. In other words, if your attorney filed suit for $175,000 and you are approved by the settlement funding company, you can expect an advance of about $17,000 to $18,000. This money can be used to pay attorney fees, medical costs, household bills, to buy groceries, etc.
What will happen if you do not win your case, how will you repay the funding company? Personal injury loans are non-recourse, which simply means you only repay the advance if you do in fact win your case. Fees and interest on the loan will also be paid at that time. If for any reason you do not win your lawsuit, you owe absolutely nothing. You are never at risk of going further into debt because you cannot repay the loan.
Are there any out-of-pocket costs? No. With personal injury loans, you pay nothing at all unless your case is won. There are no monthly payments, no upfront fees. You are never out one penny of your own money. As stated above, you only repay once your case has been won.
Is qualifying for personal injury loans hard? Not at all if you have a strong, viable claim. Frivolous lawsuits will not be accepted, but if yours is a solid claim you will likely qualify. Additionally, you never have to provide background information, credit rating, employment status or history and other such information to settlement funding companies in the application process. All they will want are the details of the accident, medical reports, and information regarding the injuries you suffered as a result of the accident.
Insurance companies are notorious for offering low-ball settlements, and injury lawsuits can take months to settle. In the meantime, how do you live normally and avoid possible financial disaster? Speak to your attorney about whether personal injury loans are a solution that may be right for your unique situation.