Personal injury loans are given to individuals who have been injured due to negligence, and who have a strong case. Often times, a victim may take the negligent party to court in order to obtain compensation for lost wages, medical costs and other related expenses. However, these types of cases can take months to settle, or even longer. At some point, many injury victims find they do not have the financial resources to pay the bills, medical costs, to buy groceries – it simply becomes hard to live normally. This is where litigation funding comes in.
Essentially, personal injury loans allow you to “borrow” from the settlement you expect to win in a lawsuit. Consider it a cash advance against your pending settlement, your own money. Because you can get the advance immediately if you qualify, you can pay the household bills and live comfortably while your attorney continues to fight for the full damages you deserve from those responsible for your injuries.
How much can you get with a personal injury loan? In most cases, litigation funding companies advance those who qualify about 10% of their expected settlement. If your attorney has determined your case is worth $350,000, $35,000 will go a long way toward allowing you to pay the household and medical bills, attorney fees and other costs for the duration of your lawsuit.
You don’t have to worry about out-of-pocket expenses with personal injury loans, as there are no up-front fees to worry with. All fees and interest will be collected when you repay the advance, which is only at the time your case is won and you are awarded a settlement. In the event you do not win your lawsuit, you will not repay the litigation funding company any portion of the advance, because the process is non-recourse.
Applying for a personal injury loan is a simple process, handled for the most part by your attorney. You will not be required to provide personal information such as credit rating, employment status, etc. Litigation funding companies are only interested in the details of your case and its strength. When you have a strong claim, the odds of your winning are greater, which is how funding companies determine if you qualify. Most will advance from $500 to $250,000 or more, depending on your particular circumstances.
Personal injury loans are not for everyone, but it may be a good solution for you. Through litigation funding, you can live comfortably, avoid financial stress and focus on winning your lawsuit. Talk to your lawyer about the process, and whether it may be right for you.