Personal Injury Loans Make it Possible for You to Avoid Settling for Less Than You Deserve

It can be tempting to settle for less than you’re actually entitled to if you are the victim of negligence and are having financial issues.  Personal injury lawsuits often take weeks, months, and even longer to settle; in the meantime, your financial situation may become worse due to mounting medical bills, time spent in court, or even your inability to work.  Personal injury loans make it possible for you to continue on with your lawsuit in an effort to win the full compensation your deserve for costs associated with your injuries.

What is the process of obtaining personal injury loans?

It’s simple, really.  As long as you have a strong lawsuit the litigation funding company would not consider frivolous, it’s likely you will qualify.  This type of funding is actually a cash advance against the money you expect to win in your lawsuit, rather than a loan.  Essentially, you are borrowing against your own money.

How do settlement funding companies determine whether you will be granted an advance?  Your attorney will gather the essential information to be reviewed by the funding company, which includes the details of your lawsuit including the nature of your injuries and the accident or circumstances responsible for your injuries.  What you will not be required to do is submit personal information such as your credit rating, employment status, etc.  Your financial situation has nothing to do with whether individuals qualify for personal injury loans.

How much of an advance can you expect?  In most cases, those who are eligible for an advance will receive about 10% of the amount they expect to win in their lawsuit.  So, if your lawyer valued your case at $150,000 and filed suit for that amount, you will likely be advanced about $15,000.  This money can be used to pay household utilities or the mortgage, medical bills, attorney fees, to buy groceries and household needs, etc.

When do you pay the advance back?  With personal injury loans, you repay the funding company only in the event you are successful in court and win your lawsuit.  If you do not win, you do not pay a penny to the litigation financing company – the money is yours to keep.  Additionally, there are no up-front fees or other out-of-pocket expenses, and you only repay the advance when your lawsuit is settled, and you have your money.  You are never at any financial risk, because you owe nothing if you do not win your claim.

Personal injury loans are one solution for plaintiffs who have been injured and need financial help, however they are not right in every case.  You can find a wealth of information online, or discuss this type of loan with your lawyer who will have answers to any questions you may have.

Posted in Legal