Settlement Loans Provide Financial Relief While Waiting on Insurance or Lawsuit Settlements

If you have ever heard of settlement loans (although many people have not), you may be curious as to just what they are, particularly if you are waiting on a settlement for your injury claim from insurance companies or a personal injury lawsuit.  This type of litigation funding is designed for those who are facing financial hardships while waiting on their money, or for those who have a structured settlement and need money immediately.  Frequently, those who have been injured find that due to their injuries and inability to work, money is short.  It is difficult to pay household bills, buy groceries, pay medical expenses and other costs, and the stress can be substantial.  You may even fear that if things continue on course, you will have to file bankruptcy.  Settlement loans are ideal in these situations.

What makes settlement loans different from other types of loans?  Unlike conventional loans in which you are required to put up substantial physical collateral (your home, car, etc.), your expected settlement IS your collateral.  Litigation funding companies do not approve you unless they feel certain that you will win your settlement, which is determined by the application which your lawyer will submit.  This application pertains only to the details of your lawsuit, and asks no questions regarding credit, current or previous employment, etc.

Settlement loans are the fastest way to get money immediately, which is important if you are on the edge of financial disaster.  Typically, the litigation funding company will review your information within 24 hours of submission; you will know the next day whether you qualify, and get your money if you do.  How much you are entitled to depends upon the value of your settlement, so the larger the amount you expect to win, the larger loan you are entitled to.

What about paying settlement loans back?  You may wonder how you could possibly make yet another monthly payment to a litigation funding company when you are barely making ends meet.  This is the beauty of litigation funding; you only repay the money once you have your settlement money in hand.  If you do not win your lawsuit, you owe nothing at all because the process is non-recourse.  If you are already receiving your structured settlement payments, you can get a lump sum of money and repay the loan using the payments you are receiving, so you face no out-of-pocket expenses.

In most instances, your attorney must agree before you apply for a settlement loan.  If you are in a financial bind and wonder how you will make it until you receive your money, ask about litigation funding.  It just may be the answer to your financial dilemma.