Have you been injured because of another party’s negligence? You may be tempted to settle out of court, but beware – you will NOT be awarded the full compensation you are entitled to from the insurance company. This is where settlement loans come in. When you file a lawsuit, you will find that between attending court proceedings and possibly being unable to work due to your injuries, your financial resources disappear quickly. However, it is to your advantage to file a lawsuit, because a skilled attorney can usually obtain the full compensation you deserve. Litigation funding is a process that is easy, worthwhile financially, and puts you at no risk whatsoever.
Injured victims often face financial issues that are so severe they could possibly be facing bankruptcy. Considering the subtantial medical costs, lost wages and legal fees, a settlement loan can be extremely beneficial. A loan is not really a “loan,” but a cash advance against the settlement you expect to receive. This advance is typically about 10% of your expected settlement. If you expect to win $150,000, a litigation financing company would likely advance you around $15,000. This money can help you pay household bills, buy groceries, meet medical expenses and more while you wait for your lawsuit to settle.
How much does it cost upfront? Nothing at all. Litigation financing companies will not approve your advance unless they feel that you have a very strong, solid case. Your attorney will submit the application, which pertains only to the circumstances surrounding the accident and your injuries. There are no employment, background or credit checks to worry about. Once submitted, the settlement funding company usually makes a decision the same day; you can have your money the next morning if you qualify.
Settlement loans are also non-recourse, which means that in the event you are not awarded the settlement you expect, you do not repay the loan. Essentially, if this happens you have been given free money! However, if you do win, you only repay the loan when you actually receive your money. Should you choose structured settlement payments, you can use those payments to repay the lender.
It can be tempting to just take what the insurance company offers and run with it, but you are cheating yourself. Insurance companies never pay injury victims the full amount they deserve. By filing a lawsuit, your lawyer can use his skill and experience to secure the full compensation you deserve for medical costs, pain and suffering, lost wages (and possibly future income) and more. Settlement loans allow you to live normally without constant money problems while your attorney fights for justice. Talk to your attorney today about litigation funding, to see if it may be the right solution for you.