Individuals who are involved in a personal injury lawsuit because they have suffered injuries caused by negligence often find themselves in a financial crisis. This is where settlement loans come in, a type of funding that allows those who qualify to get an advance against a pending settlement almost immediately. This money can be used to pay household bills, attorney fees, and other costs while waiting for your lawsuit to settle.
Who qualifies for Addison settlement loans? Anyone who has a strong, non-frivolous personal injury claim. If your attorney has taken your case on a contingency basis, chances are you will qualify – lawyers typically do not take on cases they feel are weak or that they cannot win. The litigation funding company will likely approve an advance if your attorney has been hired on a contingency basis, because it means they will likely get the advance money back when your case has been won.
How do you qualify? Funding companies will ask for documentation regarding your injuries and how they came about such as in a car accident, slip and fall, etc. Your lawyer will provide this information, and both you and your attorney will sign off on the application. With settlement loans you will not be required to supply personal information such as your employment history or status, or credit standing.
No risk, as you do not repay the funding company unless you win. Settlement loans are a no-risk way to get the money you need to live on while waiting for your lawsuit to settle. You only repay the advance if you do win your lawsuit, at the time you have control of your money. Otherwise, this is a non-recourse loan which simply means if you lose, you owe nothing. No monthly payment, no out-of-pocket expenses for you to worry about.
If you qualify, expect about 10% of your settlement as an advance. Most litigation funding companies give those who are approved an advance of about 10% of the value of their lawsuit. In other words, if your lawyer determined the value of your claim to be $400,000, your advance will be in the range of about $40,000. Because personal injury lawsuits are widely known for taking months or even longer to settle, this money will help you live comfortably and pay the bills for the duration.
Learn more about settlement loans by searching online, or discuss the process in detail with your attorney, who can help determine whether this type of funding is right for your situation.