When you’ve been injured in an accident caused by someone else, the insurance company gets in no hurry to settle your claim. You find yourself facing tough financial issues due to your inability to work, and mounting medical expenses. Lawsuit loans are designed to help those who need money now, so that they can live normally while waiting on their settlement. Whether your attorney is in negotiations with the insurance company, attempting to get a fair settlement or you are involved in a jury trial, litigation funding is one option you may want to consider.
What are lawsuit loans? Although the term implies that you are applying for a loan, it is more of a cash advance against your pending settlement. You essentially “borrow” against the settlement you expect to receive, then repay the settlement funding company once you receive your money. Most companies advance approximately 10% of a client’s expected settlement, and you do not repay the “loan” unless you do receive a settlement. This way, you assume no risk whatsoever.
There are no upfront fees, so you never have to worry about going further in debt in order to obtain an advance. Lawsuit loans make it possible for you to pay your regular household expenses, medical costs and other obligations so that you can live as you normally would while awaiting your settlement. Many personal injury cases take months or even longer to settle, putting plaintiffs in a financial bind. This is when litigation financing is particularly advantageous; you don’t have to settle for whatever the defendant and/or his/her insurance company wants to offer you because of your financial situation.
With lawsuit loans, the process is super-fast so you can have the money you need for bills, groceries, and other expenses usually within 24 hours of being approved. Your attorney will submit the necessary information, which pertains only to your injury claim and nothing else – no background, credit or employment checks. Once the litigation funding company determines that you do qualify for an advance, you can get your money almost immediately.
Insurance companies are known for de-valuing victims’ claims, meaning they will work vigorously to pay you less than you deserve. They certainly get in no hurry to settle your claim, and negotiations between the insurance company and your attorney can be lengthy. If you find yourself going deeper and deeper into debt while you’re just trying to get what is rightfully yours, consider lawsuit loans. While litigation funding may not be the right solution in every case, the only way you will know if it would be beneficial for you is to talk to your lawyer and learn more.