If you have been injured in an accident caused by the negligence of someone else and are waiting for your lawsuit to reach completion, you may want to consider personal injury loans. Injured victims frequently find they are facing huge medical expenses, the number one reason for bankruptcy today. If you cannot work because of your injuries, it only compounds the problem. Litigation funding may be a good solution for you; an explanation of how it works can be found below.
What exactly are personal injury loans? Rather than an actual loan, it is an advance against your expected settlement. In most cases, if you are approved by the settlement funding company, you can expect an advance of approximately 10% of your anticipated settlement. So, if you and your attorney expect to be awarded $150,000 when your lawsuit settles, you may be advanced somewhere in the vicinity of $15,000. This money may be used to pay medical costs, household expenses, attorney fees, etc.
Who qualifies for personal injury / legal financing loans? Anyone with a strong claim which is likely to win. Frivolous lawsuits are not accepted. You or your attorney will submit an application to the funding company; the information requested relates only to the accident that caused your injuries, and the extent of your injuries. You will never be asked about employment history, credit rating, etc.
How are personal injury loans repaid? You only repay the advance at the time you win your lawsuit and have your money, plus minimal fees and interest. With litigation funding, there are never any out-of-pocket expenses to put you further in debt. Should you not win your lawsuit, you are not required to repay the advance, because the process is non-recourse. Essentially, you are at no risk financially.
How long will it take to be approved and get an advance? In most cases, personal injury loans are given within 24 hours of approval. Once the information is submitted, the litigation funding company will review it right away, usually the same day. You can get the money you desperately need immediately.
Personal injury loans not only help you avoid financial problems and live comfortably for the duration of your lawsuit, they also help your attorney by having the financial resources to fight aggressively and build a strong case. Talk to your attorney about the litigation financing process today, and whether it’s right for your situation; it could save your financial future.