Settlement loans aren’t really loans at all, but an advance given against an expected lawsuit settlement to someone who has been injured because of negligence. If you are not familiar with litigation funding and find that you are having a tough time financially while waiting for your lawsuit to complete, you will be interested in the following information.
Injured victims often face tough financial issues, particularly considering medical costs and lost income due to your inability to work or time spent in the courtroom. Settlement loans make it possible for you to pay the bills while you are involved in a personal injury lawsuit, which often take months or even longer to reach conclusion. This money may be used to pay medical or household bills, buy groceries, even pay attorney fees so that your lawyer can present the strongest possible case on your behalf.
Does every individual qualify for an advance? No. With settlement loans, you must have a strong case, not one that would appear to be frivolous or simply an attempt to collect money you do not deserve. Litigation funding companies want to know that the case is solid; this increases the odds that the company will be able to recoup the money advanced to the injured victim upon settlement.
If your case is strong and you are approved, you will receive your advance within 24 hours. The process and approval are easy; your attorney will gather the necessary information which includes that related to your injuries and the accident or circumstances which caused them. No credit checks, no background checks, no employment verification. Only the facts surrounding your case.
Settlement loans are also no-recourse, which simply means that if for any reason your lawsuit is not won, you do not repay the advance to the litigation funding company. This way you are at no risk financially, and do not end up owing money that you do not have. You will only repay the advance along with any fees and interest that apply if you do in fact win your lawsuit.
How much will your advance be? It depends on the value of your claim. For example, if you and your attorney are suing the defendant for $250,000, you will likely receive a settlement loan of about $25,000, or 10%. This is the percentage most often given to injury victims against a pending lawsuit settlement.
Litigation funding can be a lifesaver, helping you live comfortably while waiting to get the compensation you deserve. Is it for you? Ask your attorney about the benefits of settlement loans, and whether this is a process you should consider.