If you’re in the middle of a personal injury lawsuit, you might be wondering, “Can I get a loan while I wait for my settlement?” It’s a common question, especially when medical bills and other expenses start piling up.
The wait for a settlement can feel endless, and lawsuit loans can seem like a quick fix. However, before you jump in, here’s what you need to know about how pre-settlement funding works, the costs involved, and whether it’s the right choice for you.
What Is a Personal Injury Lawsuit Loan?
A personal injury lawsuit loan, also known as a lawsuit cash advance or pre-settlement funding, helps plaintiffs access cash before their case is resolved. It’s typically used by those involved in personal injury claims like car accidents, slips and falls, or medical malpractice.
How Does Pre-Settlement Funding Work?
Pre-settlement funding can help plaintiffs who need quick funds for living expenses, medical bills, or other urgent costs. Here’s how it typically works.
Application Process
- Submit an Application: After filing your personal injury lawsuit, you can apply for funding through a lawsuit loan company. The application will usually require details about your case, including the nature of your injuries and the expected settlement timeline.
- Case Evaluation: The funding company will review your case’s strength and value. They may consult your attorney for more information on the case’s progress and expected outcome.
- Receive a Cash Offer: If approved, the funding company will make an offer outlining how much you can borrow and the fees involved.
Repayment Terms
- Settlement or Judgment: Once your case is resolved, the lender is repaid directly from the settlement or judgment amount, so you don’t have to make any payments upfront.
- Funding Fees: Funding companies charge a fee for their services, which can range from 2% to 4% per month. While this might seem low, it can accumulate quickly and lead to high repayment amounts.
How Many Times Can You Borrow From Your Settlement?
Generally, you can apply for multiple loans, but it gets more challenging each time. Funding companies will look at your financial situation and your case’s progress before approving more loans. Again, keep in mind that the fees can quickly add up with multiple loans.
What Is a Personal Injury Lawsuit Loan?
A personal injury lawsuit loan, also known as a lawsuit cash advance or pre-settlement funding, helps plaintiffs access cash before their case is resolved. It’s typically used by those involved in personal injury claims like car accidents, slips and falls, or medical malpractice.
How Does Pre-Settlement Funding Work?
Pre-settlement funding can help plaintiffs who need quick funds for living expenses, medical bills, or other urgent costs. Here’s how it typically works.
Application Process
- Submit an Application: After filing your personal injury lawsuit, you can apply for funding through a lawsuit loan company. The application will usually require details about your case, including the nature of your injuries and the expected settlement timeline.
- Case Evaluation: The funding company will review your case’s strength and value. They may consult your attorney for more information on the case’s progress and expected outcome.
- Receive a Cash Offer: If approved, the funding company will make an offer outlining how much you can borrow and the fees involved.
Repayment Terms
- Settlement or Judgment: Once your case is resolved, the lender is repaid directly from the settlement or judgment amount, so you don’t have to make any payments upfront.
- Funding Fees: Funding companies charge a fee for their services, which can range from 2% to 4% per month. While this might seem low, it can accumulate quickly and lead to high repayment amounts.
How Many Times Can You Borrow From Your Settlement?
Generally, you can apply for multiple loans, but it gets more challenging each time. Funding companies will look at your financial situation and your case’s progress before approving more loans. Again, keep in mind that the fees can quickly add up with multiple loans.
Can I Borrow Money From My Lawsuit?
Yes, you can borrow money against your lawsuit, but it’s important to carefully weigh the pros and cons. While lawsuit funding can provide immediate financial relief, it comes with costs and risks you should be aware of.
Lawsuit Loans Pros and Cons
Pros of Lawsuit Loans
- Instant Cash: As mentioned above, lawsuit loans help you cover expenses while your case is pending so you can focus on recovery without worrying about money.
- Risk-Free Repayment: If you lose your case, you’re not required to repay the loan, which can provide peace of mind during a difficult time.
Cons of Lawsuit Loans
- High-Interest Rates: The fees associated with lawsuit loans can be steep, often ranging from 27% to over 60% annually, which means you could end up paying way more than you borrowed.
- Pressure to Settle: Having a loan may make you feel pressured to accept a lower settlement offer quickly to repay the loan and cover your immediate expenses.
- Limited Regulation: The lawsuit lending industry isn’t heavily regulated, so terms can vary a lot between lenders, and there’s a risk of predatory practices.
At Field Law Group, our lawyers ultimately advise clients against taking a loan due to the high interest charged by funding companies. While it may offer temporary relief, the long-term financial implications are often burdensome.
Can I Borrow Money From My Lawsuit?
Yes, you can borrow money against your lawsuit, but it’s important to carefully weigh the pros and cons. While lawsuit funding can provide immediate financial relief, it comes with costs and risks you should be aware of.
Lawsuit Loans Pros and Cons
Pros of Lawsuit Loans
- Instant Cash: As mentioned above, lawsuit loans help you cover expenses while your case is pending so you can focus on recovery without worrying about money.
- Risk-Free Repayment: If you lose your case, you’re not required to repay the loan, which can provide peace of mind during a difficult time.
Cons of Lawsuit Loans
- High-Interest Rates: The fees associated with lawsuit loans can be steep, often ranging from 27% to over 60% annually, which means you could end up paying way more than you borrowed.
- Pressure to Settle: Having a loan may make you feel pressured to accept a lower settlement offer quickly to repay the loan and cover your immediate expenses.
- Limited Regulation: The lawsuit lending industry isn’t heavily regulated, so terms can vary a lot between lenders, and there’s a risk of predatory practices.
At Field Law Group, our lawyers ultimately advise clients against taking a loan due to the high interest charged by funding companies. While it may offer temporary relief, the long-term financial implications are often burdensome.
Get the Compensation You Deserve with Our New York Attorneys
If you’re struggling financially while your case is being settled, don’t hesitate to contact our team at Field Law Group! Our experienced attorneys will help you explore your options and make sure you’re making the best decisions for your case.
Call 212-739-7278 today to get started.
About the Firm: With over a decade of experience, Field Law Group has been helping personal injury victims across New York since 2013. We’re dedicated to protecting the rights of accident victims and fighting to get them the compensation they deserve. Contact us today to learn how we can help with your case!
Get the Compensation You Deserve with Our New York Attorneys
If you’re struggling financially while your case is being settled, don’t hesitate to contact our team at Field Law Group! Our experienced attorneys will help you explore your options and make sure you’re making the best decisions for your case.
Call 212-739-7278 today to get started.
About the Firm: With over a decade of experience, Field Law Group has been helping personal injury victims across New York since 2013. We’re dedicated to protecting the rights of accident victims and fighting to get them the compensation they deserve. Contact us today to learn how we can help with your case!
Field Law Group, P.C.
17 State Street, 40th Floor
New York, New York 10004
This website contains attorney advertising. Prior results do not guarantee a similar outcome, see Disclaimer.
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Field Law Group, P.C.
17 State Street, 40th Floor
New York, New York 10004
This website contains attorney advertising. Prior results do not guarantee a similar outcome, see Disclaimer.
Designed by PostcardMania
Field Law Group, P.C.
17 State Street, 40th Floor
New York, New York 10004
This website contains attorney advertising. Prior results do not guarantee a similar outcome, see Disclaimer.
Designed by PostcardMania