Those who are injured and waiting for a settlement from the insurance company or involved in a personal injury lawsuit often find themselves in almost desperate need of money. Settlement loans are one solution that may be ideal for you, and put you at no risk. Insurance companies typically get in no hurry to write you a check, and personal injury lawsuits often drag on for months or even longer. In the meantime, you may find yourself facing bankruptcy due to mounting medical costs and your inability to work because of your injuries. Litigation funding is a process you may want to speak with your attorney about.
Although the term ‘settlement loans’ sounds like a loan, it is actually a cash advance that is given against a pending settlement to those who qualify. Unlike conventional bank loans in which substantial collateral is required such as your home or car, there is no such requirement with litigation funding, because your expected settlement is actually the collateral. If you win, you repay the funding company the amount that was advanced to you, plus minimal fees for their services. If you lose, you do not owe the settlement funding company a penny.
How can it possibly be that with settlement loans, you could get the money you need right away, but not be required to repay the money in the event you do not win your lawsuit? Litigation funding companies thoroughly review your case prior to granting an advance, so they are fairly certain that you will win before they give you the money. Frivolous lawsuits do not merit a loan. The necessary information needed to determine if you qualify will be submitted by your attorney, should you both decide that a settlement loan is ideal for your situation.
With litigation financing, you are not required to make monthly payments to pay the advance back, so you never have to worry about adding more to your monthly financial burden. Settlement loans are repaid once you have your money and not before. If you choose a structured settlement, you can repay the funding company with the payments you receive, so you never face out-of-pocket expenses. There are no upfront costs, so basically litigation funding is a no-risk process.
How much you may be entitled to depends upon the value of your lawsuit. Typically, settlement loans allow you to get an advance of approximately 10% of your expected settlement. If you do qualify, you can expect to have access to your money the next business day, usually within 24 hours. Talk to your lawyer about the possibility of litigation funding, and put your money worries behind you so that you can focus on healing and winning your lawsuit.