Lawsuits are meant to compensate people for injustices they suffer, such as personal injuries. Pursuing a lawsuit might get you financial compensation eventually, however the procedure is costly and time consuming. Medical fees and other bills can accumulate rapidly, and you might not receive any money for over twelve months. Fortunately, solutions exist that enable you to cover these costs. Rather than taking out a conventional loan to settle your expenses, you can get a cash advance for your pending personal injury lawsuit.
Once you have filed your personal injury case in court, you can contact a lending firm to apply for a presettlement advance. After receiving your loan application, the lending firm will get in touch with your lawyer and request details about your case to assess it. When your case has been reviewed by the lending firm, you will be informed whether your loan application is accepted. Loans of this nature are extremely safe, because – if your lawsuit is unsuccessful – you do not have to repay the loan. This is why the lending firm will want to be confident that your lawsuit has a good chance of winning. To this end, the firm will thoroughly evaluate your case to avoid suffering any losses.
When your application is approved, the lending firm will calculate the loan amount based on your lawsuit’s value. You won’t receive the full loan amount, because your lawyer will receive about thirty-three percent of it as his fee. With personal injury cases, medical fees are covered by the loan amount as well. The loaned funds are transferred to you instantly after approval. Typically, you can get a fast lawsuit settlement loan in 24 hours. If your lawsuit successfully recovers the proceeds — either by court order or out of court settlement – you repay the lump sum of the loan, along with the interest and fees you agreed to.
Because plaintiffs receive money from lenders by money order, direct deposit or check, they do not have any spending limitations. Actually, many people who get presettlement loans use them to cover food, rent, car repairs and utility bills, etc. In many ways, it would be accurate to say that lending firms use lawsuit loans to purchase part of a plaintiff’s expected settlement funds.
How To Get A Pre-Settlement Pay Out The Same Day You Apply?
When it comes to qualification criteria for settlement advances, different firms take different approaches. Most of the time, you will need to have a lawsuit in progress – with a lawyer enlisted to represent you. Also, you might qualify if your lawsuit has been successful already, or if you have reached an agreement with the defendant – and are just waiting for the funds to arrive. In addition, some firms have maximum amounts they are prepared to offer. The kind of lawsuit you are pursuing will influence the amount you are offered and whether you qualify. Cases involving employer negligence, car accidents, wrongful death and premises negligence commonly qualify for lawsuit loans.
When selecting a presettlement loan firm, there are a number of things to take into account. Not all of these firms are created equal. Here’s what you need to know:
-Look at several offers. Different firms might offer to pay you different percentages of your forecast settlement funds.
-Ensure that the firm works in your state. Although it doesn’t have to be headquartered in your state, it ought to have the relevant state business license.
-Check how often the firm compounds the loan interest. Over time, this will accumulate significantly, and interest that compounds weekly or daily will cost more than interest that accumulates over a longer period.
-Check the amount of interest you will have to pay each month, prior to receiving your settlement amount. The importance of this can not be overstated, because it greatly affects how much cash you will get when your case concludes.
-Regardless of how dire your financial situation is, make sure you compare different offers carefully to ensure you make the right choice. If you are unsure about anything, speak to a financial adviser or ask your lawyer for assistance. A trustworthy legal advance firm should have a good customer support team that can provide clear explanations and help you understand the process fully.
One great aspect about presettlement loan applications is that lenders do not conduct credit checks, or require employment verification or proof of income. Rather, underwriters use the paperwork given to them by your lawyer to assess the merits of your case. More often than not, plaintiffs receive funds from lenders, if they are close to a settlement judgment.
As already stated, because lenders shoulder big liabilities by providing lawsuit loans, they focus on cases with a high probability of success. Due to this, personal injury lawsuits involving accidents in public areas, medical negligence and road accidents are approved for funding frequently. Nonetheless, presettlement loans are offered for some illness compensation and product liability lawsuits as well.
The time you have to wait to receive the funds can vary, depending on the lending firm and how fast your lawyer provides them with details about your lawsuit. As a general rule, you shouldn’t have to wait longer than two business days, once your application is approved. All lending firms have their own limits for cash advances. Firstly, firms have limits on the percentage size of your forecast settlement, typically ranging from ten percent to twenty percent. Therefore, if they calculate that your settlement could amount to $100,000, you would receive offers between $10,000 and $20,000. Also, lots of firms impose dollar amount limits and will not provide loans exceeding certain amounts.
When you take out a conventional personal loan, monthly payments are required. If you fail to meet those payments for a couple of months, the consequences can be dire for your credit score and financial future. Lawsuit settlement loans do not work like this, because monthly payments are not required. Payments are only due when you have received your court award or settlement. If the court declines to award you compensation, the lending firm accepts the loss and will not pursue you for a fee.
You are allowed to pay back your cash advance when you want, without being penalized. Nonetheless, some firms might require you to repay a minimum amount. For instance, if you wished to pay back your loan after a few months, and the lending firm charged three percent per month on your loan, your contract might stipulate a repayment amount of three, four or six months. For this reason, you should thoroughly read the conditions and terms of your loan contract, before signing it, to prevent any expensive surprises further down the line. Another important consideration is that this type of loan is nonrecourse, and depends on your case outcome completely. As a result, if you are unexpectedly denied compensation, you do not have to pay back the funds you borrowed. Therefore, although you might save some cash by opting to settle the loan early, it might end up being a bad choice if your lawsuit is unsuccessful. In that situation, you would be significantly out of pocket when you could have avoided it.
Plaintiffs can be given several cash advances, based on how their lawsuits progress. As mentioned above, many cases take at least twelve months to conclude, so – as plaintiffs receive treatment and surgery for their injuries — their lawsuits might increase in value. If it becomes clear that your case is likely to be successful, many lending firms will agree to provide extra funds. If your original lender is unwilling to provide you with extra funding, you could get in touch with another lender to seek assistance. If you are approved for extra funding from another lender, they just need to get a payoff contract from your first lender to settle the outstanding amount. You are not allowed to use several lenders while your case is in progress.
No two lawsuits are the same, so different people will need different things from a presettlement lending firm. After you have compiled a shortlist of the firms you are considering, contact them separately and ask questions to help you identify the best option. Ask what kinds of lawsuits they provide funding for, and how fast they can send you the cash, etc. Also, you will need to inquire about their fee structure. A trustworthy presettlement lending firm will happily reveal their fees in a transparent way. If they avoid addressing this issue, or only give a vague answer, you should cross them off your list.
Of course, it can take a lot of time to research pre-settlement lending firms, read online reviews about them, and compare their loans with other firms, etc. However, you should not overlook this process, because if you choose a firm too quickly you might regret it. It is best to start this due diligence as soon as possible, after filing your lawsuit and enlisting the services of a lawyer. You want to avoid waiting until you are low on funds and desperate for a payout, because you could end up rushing and choose a firm that is unsuitable for your case. By starting your research straightaway, you will have sufficient time to weigh up all the options and determine which presettlement lending firm is right for you. There is no obligation to take out a loan, when you contact a lending firm. However, it is wise to do your homework thoroughly, so you will know who to turn to if the need arises.
Many people who have positive experiences with presettlement lending firms post their comments online, so it is worth checking forums and social media groups for this type of feedback. A good starting point is the ConsumerAffairs.com website, which compares many of these firms against each other. In addition, you can search for the firm you are considering on Google, and check the Better Business Bureau to see whether any issues have been flagged. If you struggle to find reviews about a particular firm, or only find derogatory reviews, it is probably best to move on.
On average, it takes roughly eighteen months for a civil lawsuit to conclude. The defendant’s insurance firm might be liable for your lost salary, medical fees, suffering and pain, however the insurer has no motivation to provide this money quickly. Much of the time, dragging the case out as much as possible is part of the insurer’s strategy. This way, you might be forced to accept a lower payout, because you need the cash straightaway. Insurance firms have plenty of money to spend on lawyers and lots of time to contest your case. Lawsuit settlement loans can help you take on the insurance firms, by offering you the money to pursue the case fully, so you get the compensation you deserve.