Automobile accidents are a financial drain and can create significant distress when you have a combination of medical bills and income loss to manage. When you are behind on bills or anticipate being unable to make ends meet due to a temporary disability, you can consider a personal injury lawsuit loan. This form of disbursement helps you stay financially stable after a serious personal injury while you wait for settlement funding. While they are convenient, it is essential to understand how they work. Personal injury lawsuit loans come with requirements, interest, and stipulations before you can receive one. You can work with dedicated representatives who are knowledgeable about how these personal injury settlement loans work.
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When you are suffering from a personal injury that wasn’t your fault, you may be struggling to cover all your medical bills while waiting for settlement funding. If this is the case, a personal injury lawsuit loan can make your life easier. You can contact a representative to learn more about the process. Call Pinnacle Legal Funding for more information on personal injury loans.
What is a Lawsuit Cash Advance?
Personal injury loans are used as a way to provide you with cash before you receive settlement funding. They differ from traditional loans in a variety of ways. Pre-settlement funding also requires an interest rate that varies based on how strong your case is and your credit history. Depending on the results of your lawsuit, you may or may not have to pay them back.
How Does a Lawsuit Cash Advance Work?
These financial tools can help you cover your bills and reduced income when undergoing the litigation process. Lawsuits can take an extensive amount of time, and this can put stress on your financial circumstances. For this reason, pre-settlement funding can help prevent you from financial struggle.
Risk-Free
Personal injury lawsuit loans are non-recourse. This means that you are not required to pay them back should you lose your case. However, because there is the chance the defendant wins, your lender will make sure that you have a strong case before you enter into a loan contract. Your lenders may analyze the case details and speak with your attorney before deciding whether they can grant you a loan.
Interest Rates
You aren’t expected to pay anything upfront before receiving personal injury lawsuit funding; however, you can expect to pay interest on your personal injury loans. The industry average for one is around 44%. Once you receive your settlement, the loan can be paid back in full along with interest.
Discuss Options
Before entering into a personal injury cash advance, you will be given various options based on your individual needs. Your personal injury may be minor or very impactful, and because your situation is unique, you can review what loan options are available and pick one that works for you.
Estimate Needs
Every personal injury is different. If you have a temporary or permanent disability, this will significantly influence how much you will receive. You may need provisions if you are unable to work for an extended amount of time. The loan amount may also be more significant if dependents or multiple people were injured (such as passengers in a motor vehicle).
Financial Protection
Personal injury lawsuit funding is there to prevent you from living a normal life while you are waiting for your settlement. The terms are fair and reasonable and aren’t meant to cause you financial ruin or force you into long-term debt. While the interest rate may be substantial, your settlement will be able to cover the entire expense of the loan when the time comes.
How Do I Choose a Personal Injury Lawsuit Loan?
Many options are on the market, but not all companies or loan types will work in your best interest. Many frauds exist, and you have to consider what a fair interest rate will be for the amount of time you expect to wait for settlement funding.
Low-Interest Rate
Interest rates for lawsuits can vary and are usually between 27% to 60% a year. However, in unregulated states, you can see interest rates shoot as high as 98%. You should seek an interest rate on the lower end so that you have settlement funds left to help you maintain personal matters.
No High-Pressure Sales
You should never work with a loan company that pressures you into a loan or requires an upfront payment. If you feel rushed into a loan, this is probably a sign that the company has a history of fraud. Some states have fewer regulations around loan requirements, but the consumers wind up paying costly fees because of these lawsuit loans.
Simple Application Process
A lawsuit loan should be uncomplicated and easy to understand. These loans typically have easy application instructions. After it has been submitted, the lender will review your case and decide whether you are a good fit. You should choose to work with a reputable company where the application process is not complicated.
Quick Turn Around
These personal injury loans tend to be approved within a day or two. This is for the convenience of the plaintiff, who needs the money immediately after experiencing a severe personal injury.
Straightforward and Clear Agreement Terms
Your personal injury lawsuit loan terms should be transparent and easy for you to process. There should be no confusion around the agreement terms, where the contract is short and concise. If any clarification is necessary, a representative should provide the information you need and not misrepresent the loan terms.
Customer Support
Lenders you should work with need to provide customer support throughout the lending process. This can help clarify any questions about your personal injury lawsuit loan and provide additional advice on repayment.
What is the Difference Between a Personal Injury Settlement Loan and a Regular Loan?
A majority of traditional loans make borrowers liable for repayment regardless of whether you win the lawsuit or not. This means that after you borrow the loan, even if you don’t receive a personal injury settlement for your damages, you will still have to pay back the loan and any accompanying interest fees. On the other hand, personal injury settlement loans don’t require you to pay them back if you lose your lawsuit. Only when you win your case, you have to repay the entire loan along with interest.
How Do You Qualify for Pre-Settlement Legal Funding?
The main requirement for being approved for pre-settlement funding is by having a solid lawsuit where the defendant is likely to be held liable for your personal injury. However, there are a few other rules that you have to fulfill before you can be approved.
You Must Have an Attorney
Before you can apply for a personal injury lawsuit loan, you have to be working with an attorney who works on a contingency basis. This means that your lawyer only gets paid if they win your personal injury settlement case. You can learn more about pre-settlement funding from your loan representative.
You Have a Personal Injury
If you sustained an injury during an accident, your damages should be the result of another’s mistakes. This means that they can be held liable for your damages and owe you a settlement. Not all personal injuries may qualify, for example, those with weak proof that another is at fault for your damages. Otherwise, you can’t receive a lawsuit cash advance.
Case Has Strong Merits
It helps when your personal injury claim has strong merits. This means that your lawsuit might be rewarded based on the judge’s observation that a settlement is morally right and is a justifiable recourse that corrects the defendant’s responsibility for your injuries. There should be strong evidence that the other party has acted neglectfully, causing you great harm.
Must Be a Mature Personal Injury Claim
The only reason you should apply for a personal injury lawsuit loan is after you have already worked with an attorney, filed a lawsuit, and begun the investigation process. If you have no solid foundation for the basis of your case and information backing it, you aren’t ready for a pre-settlement loan yet. This should come later down the line after you have filed a lawsuit.
What Kind of Personal Injury Claim Can Qualify for Personal Injury Loans
Almost any personal injury is eligible for a loan, as long as someone can be held responsible for your damages. Some personal injury cases can include the following:
Medical Malpractice
If you experienced a personal injury because of a doctor or healthcare facility’s errors, your lawsuit case could be eligible for a cash advance. This means that your attorney can prove that the defendant owes you an obligation, breached that obligation, was the cause of your damages, and resulted in your harm.
Automobile Accident
After a terrifying accident, your lawsuit case could qualify if there is clear evidence that the defendant is at fault for your damages. This can include car, bike, motorcycle, commercial truck, bus, pedestrian, and boating accidents. When you get into a wreckage on the road, and the defendant was breaking the rules, doing substance abuse, or grossly negligent, then you have a strong case.
Slip and Fall
The premise owner is liable for your injuries when you receive a personal injury on their property because of their negligence. For example, they don’t have signs up on their property indicating there is a hazard. Other premises liability instances are when the property is poorly maintained, is not adequately cleaned, or has no repairs to run-down areas.
Product Liability
When you buy a product and use it according to its instructions but suffer a personal injury, you may have a strong case against the manufacturer. The producer is liable for the damages caused by product malfunctions.
Dog Bite Injuries
If a dog owner neglected to keep you safe from their pet, you will have a strong case even if it is not in the dog’s nature to bite others. It is the owner’s responsibility to protect passersby from their dog.
Wrongful Death
Loved ones who passed away due to the neglectful actions of another are due compensation. If you have a strong case that ties together the passing of your family member to another’s mistakes, then you may be eligible for a personal injury lawsuit loan.
Learn More About the Personal Injury Loans Process
After you’ve experienced a serious personal injury, you might be dealing with some astronomical medical bills. However, pre-settlement loans are available to help you through these difficult times. You can work with professionals who will direct you on which cash advance loan option will work best for your situation. Contact Pinnacle Legal Funding for a free consultation.
