Personal injury loans aren’t actually loans at all, but a cash advance given to an individual who is involved in a lawsuit and qualifies. The medical costs associated with serious injuries often leave individuals facing financial hardships, particularly when unable to work due to injuries, which results in lost income on top of everything else. If you are a plaintiff involved in a personal injury lawsuit, you will be interested in learning how litigation financing works to help put you back on a stable path financially.
Who qualifies for personal injury loans? Qualifying is not difficult at all, as long as your claim is solid. Unlike with conventional bank loans, there is no red tape to wade through. Your lawyer will simply provide the litigation financing company with documentation of your injuries and how they occurred, so that the funding company can determine the strength of your case and likelihood of its winning. Additionally, you will not be asked for your credit rating or other personal information such as employment status.
When will you get an advance if you do qualify? With personal injury loans you can expect to get your money quickly if you qualify, usually within 24 hours. Generally speaking, most people who are granted an advance will receive approximately 10% of their expected settlement amount, determined by the plaintiff’s attorney. Of course, the larger the expected settlement, the larger an individual’s advance will be.
Personal injury loans are non-recourse. While this may sound complicated, it’s really quite simple. With litigation financing, the client only repays the advance in the event that he or she wins the lawsuit. If the lawsuit is lost for any reason, the advance is not repaid to the funding company, nor are any fees or interest. Essentially, this is a no-risk way to get the money you need quickly, without the risk of having to find a way to pay it back if you do not win your case.
This type of advance is ideal for those who are having a hard time making ends meet while waiting for a lawsuit to settle. With personal injury loans (aka pre-settlement funding) you can pay household bills, attorney fees, buy groceries, pay medical expenses, and more. If you need financial relief so that you can carry on with your lawsuit and avoid settling for less than you deserve, discuss the pros and cons of litigation funding with your attorney today.