Personal injury loans are not really loans, but a cash advance given to those who are involved in an injury lawsuit and qualify. If you are the plaintiff who suffered injuries in an accident or under circumstances caused by negligence or malicious conduct, you may be eligible for litigation funding. Essentially, you will be able to pay the bills or catch up on financial obligations so that you can avoid money worries while awaiting settlement.
Do all applicants qualify for personal injury loans? No, but most do as long as they have a strong, viable lawsuit – one with a good chance of winning. Litigation funding companies do not approve frivolous lawsuits, simply because the odds are high they will not get their money back. However, if your attorney took your case on a contingency fee basis, it’s likely you have a strong case, and that you will qualify for a loan.
Do personal injury loans have to be repaid on a monthly basis? No. If you are given an advance against your pending settlement, there will be no monthly payments or out-of-pocket expenses. You repay the loan along with any fees or interest that apply only when you have recovered an award and have your money. Otherwise, such as if you lose your lawsuit, you owe absolutely nothing.
How long does the process take, and what is involved? With personal injury loans, the entire process of applying and learning if you are approved is extremely quick. Your lawyer will submit the details regarding the accident or circumstances that led to your injuries, along with information about those injuries. It is not necessary to include background information such as employment history, credit rating, etc. The litigation funding company is only interested in your lawsuit, nothing else. Usually, the entire process from applying to approval and getting your advance takes only 24 hours or less.
Personal injury loans make it possible for the injured party to pay medical bills, household expenses and other costs while involved in an ongoing lawsuit. Many plaintiffs find this to be a very stressful time financially, especially when they cannot work. Litigation funding alleviates this stress, and makes it possible for you to live as you normally would while your attorney fights for justice.
This type of funding isn’t right for every situation, but many have found it to be the solution to their money problems. Discuss the options with your attorney, who can advise you if it may be right for you.