Could you afford a sudden emergency expense? What if it was more than $400? or $2,000?. Nearly 40% of Americans can’t afford a surprise expense that large. So what do you do when someone else injures you, and you’re facing sudden expenses that total – Settlement Loans mat help.
Your first step is filing a lawsuit against the person who caused the injury and their insurance company. But pursuing a lawsuit is a long, expensive, and arduous task. In the meantime, your bills continue to grow.
Pre settlement loans can help you meet your financial responsibilities while you wait for your litigation to proceed through the system.
WHAT IS A SETTLEMENT LOAN?
When you file a lawsuit against another party, your case doesn’t go straight to trial. Before this step, the legal system allows you and the other party to settle. About 97% of civil cases get settled and never see the inside of a courtroom.
But even the settlement process can take months. A settlement loan can help you pay bills and living expenses while you wait for your settlement completion.
The most common cases that require settlement funding are personal injury claims. The cases that qualify for a settlement loan include a wide range of lawsuits that include but aren’t limited to:
- Auto Accident injuries
- Medical malpractice
- Product liability
- Personal Injuries
- Premises liability
- Wrongful death
- Wrongful imprisonment
- Workers compensation
If you’re unsure if your case qualifies, the best course of action is to speak with a lender directly. They can discuss the details of your case and help you determine if you qualify.
WHY WOULD YOU TAKE OUT A SETTLEMENT LOAN?
You’re injured and have filed a case in court to seek compensation for your injuries and loss. But in the meantime, you need to continue to pay your bills and living expenses. This becomes challenging or almost impossible if you can’t work due to your injuries.
The other party is often an insurance company that knows you can’t work. Their goal is to exhaust you financially until you feel stressed and pressured to accept any offer. They’ll then make a low ball offer.
A settlement loan enables you to remain financially stable. Now you can wait for the insurance company to make a larger settlement offer.
WHAT CAN I USE THE MONEY FOR?
You can use the money to pay your medical expenses and living costs. You can use the money how you see fit to cover your bills while waiting for your case to settle. Here are some possible bills you can pay with your cash advance.
- Car payment
- Medical bills
HOW ARE SETTLEMENT LOANS DIFFERENT FROM STANDARD LOANS?
Unlike a traditional loan, you aren’t required to start repayment immediately. This is because the loan you agree to is taken out against your finalized settlement award. So the lender doesn’t expect repayment until your case settles.
Repayment is easier; your lawyer can issue the payment for you out of the payment proceeds. Then the repayment balance will get sent to you.
The qualification and approval process is easier. Approval is based on your claim and court case. This is different from traditional loans that focus on your credit score, credit history, and collateral offered.
SETTLEMENT LOAN DRAWBACKS
While many loan products are heavily regulated, settlement loans aren’t one of them. They’re a type of short term financing, which means they can have high interest rates. The best solution is to shop around to find a reputable and trusted lender for your settlement loan.
Another drawback is that some lawsuits can take years to settle. If this happens, you could end up paying high-interest charges and fees on your loan for a long period of time. You can avoid this by vetting lenders and their policies before agreeing to a loan.
ARE THERE LIMITS TO THE AMOUNT?
The short answer is yes, but giving an exact limit can be challenging. The maximum amount you qualify for will depend on the estimated value of your settlement. This can vary significantly from state to state and the type of claim.
The average settlement amount for an auto accident claim is $24,000. But a retailer slip and fall claim averages a settlement amount of $2,000. Then medical malpractice claims average $300,000.
As you can see, someone with a slip and fall claim will likely qualify for less than someone with a medical malpractice claim. Also, keep in mind that these are averages, the specific details of your claim will dictate the value of your settlement, which can vary significantly from the average settlement amount.
Most settlement loan lenders will limit their offer to a percentage of the total estimated value of your settlement. You won’t be able to get a loan for the entire estimated value.
Keep in mind that most personal injury attorneys take about a third of your award as their contingency fee. Then if you have medical costs, you could have medical liens of up to a third of your award value. That leaves about one-third of your settlement total that belongs to you.
Settlement lenders use this remaining amount to base their loan total.
HOW LONG DOES THE PROCESS TAKE?
You can qualify for some settlement loans in 1 day. Lenders of these loans understand that the reason you’re contacting them is because you’re struggling financially. They make the process as quick as possible to ensure you get your money as quickly.
Some lenders can get you cash within as little as a day after finalizing your loan agreement paperwork. You may here these fast loans called 24hr settlement loans.
HOW TO QUALIFY FOR A SETTLEMENT LOAN
To qualify for fast settlement loans, your lender must offer loans for individuals in the state that you reside in. Once you find a lender operating in your state, you need to show that your court case has merit.
YOU MUST HAVE A VALID LAWSUIT FILED
Start by having a valid case filed with a court. If you don’t have a case filed, you have nothing for the lender to evaluate or base their loan on. The good news is that you can be at any stage of your claim and qualify for a loan.
ATTORNEY REPRESENTING YOU ON A CONTINGENCY BASIS
You need to show that you have an attorney representing your case. Your attorney must work on a contingency fee basis. If your attorney bases their fee on a victory of your claim, you’re more likely to get approved for a higher amount in your loan request.
LIABILITY MUST BE CLEARLY THE DEFENDANTS
You can’t be the party that’s responsible for the accident or the one liable for the damages. A good rule of thumb is to look at the party who bears the liability. If the other party bears the burden of proof, then you’re more likely to get approved for your loan.
NEED MONEY FOR YOUR OWN REASONS
Why would you take out a loan if you didn’t need it? If you’ve exhausted your other options and still face mounting debt, then a settlement loan is a perfect solution.
YOUR CASE MUST MEET THE UNDERWRITERS CRITERIA
Even if you qualify for a settlement loan under all of the other requirements, you need to have the right type of case. It needs to be the right type of claim with the right details.
The lender will look at the details of your case and determine the likelihood of you winning your case or receiving a favorable settlement offer. While you may feel that you’ll win your case, the lender could disagree. If one lender denies your application, try another, different lenders have different standards for approval.
WHAT IF YOU LOSE YOUR CASE
If you don’t win your case, you don’t owe the lender anything. Your loan is based on you winning your claim and the proceeds you receive from it. If you don’t succeed, there are no proceeds.
This makes your settlement loan a risk free solution.
TIPS FOR OBTAINING A GOOD SETTLEMENT LOAN
When considering different lenders, ask what their application fees are. Most lenders won’t charge them, but some do. You could eliminate the ones that charge these fees, or you could ask if they will waive the fees for you.
Ask the company how they calculate interest and if it’s compounding. Then ask if there’s a maximum cap that once reached, the company stops adding interest.
Finally, check to make sure your lender doesn’t have a conflict of interest. Don’t borrow from a lender that has financial ties to a lawyer or medical provider involved in your case.
START COMPARING VARIOUS SETTLEMENT LOANS
If same day settlement loans sound like the solution you need, then it’s time to start seeking financial help. Getting approved for
one of these loans can relieve your financial stress and enable you to pursue your legal claim.
Work with a reputable lender to determine if your case qualifies and how much you could get approved for.
Verify that we service your state and type of case to apply for your settlement loan today.
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