In short, personal injury loans are simply an advance against a pending settlement you expect from the insurance company or through a jury award. Injury victims are often convinced to accept the offer from the insurance company, even though the amount is typically only a fraction of what you deserve. It’s hard to turn down, particularly when you’re facing a mountain of bills. Litigation funding helps you get the money you need for bills immediately, so that you can avoid settling for the low-ball figure the insurance company offers.
The responsible party’s insurance company will drag things out for as long as possible, hoping you will “cave in” and accept their offer. Personal injury loans give you the money you need now, so that your attorney can continue fighting for full compensation and you can pay those medical and doctor bills, household expenses, etc. In most cases, those who qualify can get an advance within 24 hours, sometimes even the same day. How much will you be advanced if you do qualify? In most cases, about 10% of your expected settlement.
Is qualifying for a personal injury loan difficult? Not at all. In fact, the process is quick and easy. As long as you have a viable lawsuit (in other words one that is not frivolous), you will likely qualify. Your lawyer will provide the litigation financing company with the required information, which pertains strictly to the accident and your resulting injuries. Unlike with other types of loans, you are never asked to provide your credit rating, employment status or other private data.
With personal injury loans, you are never out any of your own money, because there are no up-front costs. The minimal fees and interest that you owe the funding company will only be paid at the time you repay the loan, which is when you actually receive your settlement. If you do not win for any reason, you owe nothing because the process is non-recourse. Essentially, personal injury loans do not put you at further financial risk.
Without sufficient financial resources, many injury victims find they are facing severe financial issues, even bankruptcy. Medical costs are higher than ever before; if you cannot work, it becomes difficult if not impossible to pay the bills. If personal injury loans sound like a good solution for your situation, learn more online and fill out an application, or discuss using Mayfield settlement funding further with your attorney.