Have you been hurt because of someone else’s negligence? Are you the plaintiff in a lawsuit that seeks to hold that party responsible for their negligence, in that you have filed a personal injury lawsuit against them? If so, you’ve stood up for yourself and your rights, and expect that person to pay for their negligence – and for your injuries as much as is possible – so that you are compensated for your pain and suffering.
The problem is that you don’t get any compensation until your lawsuit settles or result in a jury award. What do you do in the meantime? Fortunately, something can help provide a sort of bridge to your personal injury money, whereby you can claim part of that settlement or jury award before it actually comes to you. This is done through settlement loans.
What these loans are
Settlement loans are loans taken out against your expected jury award or settlement amount. This type of litigation financing can give you great peace of mind; you simply use that money in any way you see fit, and focus on getting better.
What they aren’t
These loans are NOT like traditional loans. You don’t have to agree to provide collateral, or be subject to scrutiny of your credit history. What these litigation financing companies do is to take a close look at your lawsuit, make sure that it’s legitimate and valid AND is likely to result in a jury award or settlement, and then will approve the loan. Once approved, you can expect to receive about 10% of your expected jury award or settlement.
What must you do to apply for these loans?
If you decide this is something you want to do, you must first consult with your lawyer. He or she must also agree that this is a good idea, and must sign off on it. Your lawyer must also have been hired on contingency, as another qualification.
Once these requirements have been met, you fill out an application for a settlement loan and submit it to the company in question for approval. If you meet these approval standards, you receive the loan.
How are the loans paid back?
Settlement loans are only paid back if you win your case. If you do, just as with traditional loans, you’ll pay back the loan plus interest and fees. However, if you lose your case, you don’t owe the company who lent you the money anything. You can simply let go, and get on with life.