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How to Qualify for a Personal Injury Lawsuit Loan

You may hope that your lawyer does everything possible to ensure you receive the funds to which you might be entitled after being injured in an accident due to someone else’s fault. You may have done everything in your power to get the lawsuit to the point where it is now, like providing your lawyer with the evidence you collected at the scene and following all of your doctor’s instructions to recover your health. However, despite your optimism, you realize that the reality of living your life while dealing with injuries and not being able to go to work is seriously affecting your finances and you may not see a way out while the lawsuit is ongoing. You may have considered asking your attorney for an advance or maxing out your credit cards, among other options to get your hands on some urgently needed funds. One more option you are considering might be personal injury lawsuit loans but you may be unsure as to how they work and what risks they entail and this is keeping you from moving forward with this option. Let’s see what a personal injury lawsuit loan is and how you would qualify for one.

What is a Personal Injury Lawsuit Loan?

A personal injury lawsuit loan is a type of financial assistance that is available to those who are involved in a lawsuit to seek compensation for their injuries and other losses. If you are in this situation, it offers you the possibility of receiving some funds before your case is resolved and a settlement is reached.

When you receive a personal injury loan, you can immediately use those funds to cover your medical expenses or to pay any bills that have accumulated while you are waiting for the lawsuit to settle.

How Do I Qualify for a Personal Injury Lawsuit Loan?

Funding companies look into several factors before deciding whether you are a good candidate for this type of loan. Typically, they look to see whether you have an open lawsuit and if you are working with an accident attorney to pursue your case. They will also consider the expected settlement amount and the projected timeline for your case.

How Does the Loan Work?

These loans require no monthly payments but entail a payment once you have received your settlement. You may also owe them some agreed-upon fees and interest.

The main benefit of these types of loans is the fact that you will not need to repay the money if your lawsuit is not successful. This means that there is no financial risk for you should the case not end as you expect it to.

How Much Money Can I Borrow?

A lawsuit funding company will analyze your case and determine how much they are willing to loan you based on that information. However, it is recommended that you do not borrow more than you need since there will be costs attached to its repayment.

Talk to your attorney to understand what they predict the timeline for your case to be. If your lawsuit is expected to settle soon, you may need less funds than if they expect it to take a year or longer to settle. Yet, it is reassuring to know that if you decide on a small amount for now, you can always go back to the funding company and apply for additional funds if the case is taking longer than anticipated. You may even be able to receive the loan when your case has already settled but you are still waiting to receive your settlement check.