It would pose a challenge when you have to recover because of an accident. It becomes harder to cope when that happens because of other people’s negligence. Examples are vehicle accidents, medical malpractice, slip and fall, and product liability.
Aside from emotional hardships, you will incur financial burdens as you recover. Filing a personal injury lawsuit can help you get the compensation you deserve. Lawsuits come at a price, all while you cover everyday needs like bill payments to even medical bills.
How Do Pre-Settlement Lawsuit Loans Work?
Pre-settlement lawsuit loans are one of the available ways to get needed help.
Before you can get a lawsuit loan, you need to have a lawsuit filed first. Once your lawsuit is in court, you can get pre-settlement funding.
A funding company like DeltaLawsuitLoans.com will check your situation and even consult with your attorney. This will determine how much lawsuit funding you can receive.
This lawsuit loan from the lending company gives them a claim to a part of your lawsuit compensation. This will be in exchange for a lawsuit cash advance that you can use while the case is ongoing.
How Many Pre Settlement Funding Or Loans Can I Get?
You can get a settlement advance of fifteen to twenty percent of your case’s estimated cost. It might be tempting to receive more but this is important to protect you and the lending company. In most cases, lending companies would also negotiate to charge interest on top of the loan. This will help you to still have some settlement amount left for yourself.
Lending companies also need to protect themselves as they give out legal loans. Settlement loans are also called “non-recourse funding”. This means that you would not have to pay back your lawsuit cash advance in case you lose your case. You can get many pre settlement funding, but they would all be under 20 percent of your case’s estimated cost.
Pros Of Settlement Loans
One of the top reasons why plaintiffs get pre settlement lawsuit loans is it helps them stay afloat. Even as you recover, you would still need to pay living costs, mortgage payments, and other bills.
If you are in the hospital, you will need to cover medical bills. Funding would be scarce because you cannot work. This is a crucial point for plaintiffs who have families they need to continue taking care of.
If you are aiming to get the fairest settlement, adequate lawsuit funding can help you.
This will give you a better chance of negotiating with the defendant. If you and your attorney are not happy with the amount they offer, a lawsuit cash advance can help you push further.
Things To Consider About Pre Settlement Lawsuit Loans
Since lawsuit loans are “non-recourse funding”, lenders would need to consider your case. They would need to weigh if they can see your case winning.
They would take a risk by approving your lawsuit cash advance. If you lose, you don’t pay anything back. Winning an amount less than you expected can cause you to pay back the entire amount.
You can expect to apply to at least five lending companies before getting funding. Lending companies will accept cases that look like it would get a large settlement. You will also need to find reputable lenders.
Lawsuit loans are not as regulated by consumer regulations as mortgages. Look for lending companies that prove to treat their customers well. There are reviews that you can look up online to see which companies prove true to their word.
Some personal injury cases can run for months or even years before it reaches settlement. If you are not confident that your case will be over in time, go for lawsuit loans if you have no other options. You can consider other resources like disability payments, friends or family first.
Pre settlement lawsuit loans have helped a lot of plaintiffs to survive. If you are currently on the same boat, it can also help you to manage better while waiting on your case.
Even if you lose the case you would not need to pay back anything. Whether the defendant pressures you to accept less than you want, this will help you all the way.