Lawsuit loans are an option for those who are currently in the midst of a lawsuit, providing financial assistance till the case reaches a conclusion. Typically, these loans require the borrower to pay a cut from your settlement winnings.
If you’ve been in a car accident or injured at work, getting accident lawsuit settlement funding may be a good idea if you’re running low on finances. These loans cover a variety of accidents and don’t have to be paid till the lawsuit is settled.
What is personal injury?
Personal injury claims are filed against those who intentionally or through negligence cause harm to other people. Those harmed have the right to seek compensation for any damage to the body, to property, or for any mental suffering.
There are several categories of accidents or negligence that fall under personal injury law, including:
- Car accidents
- Worker’s compensation
- Slip and fall accidents
Personal injury laws ensure that people receive the compensation, they deserve for any wrongdoing against them. In order to receive this compensation however, they have to prove that the defendant was at fault. This process can often be lengthy and affect the timeline of a personal injury lawsuit.
Plaintiffs have to prove that the defendant had a responsibility in the situation, failed to follow that responsibility and directly caused the accident. Lawsuits have to be filed quickly, however, as most states have a 2-year time limit for filing personal injury cases.
Lawsuit loans
When people are involved in accidents, they may have to deal with a lot of bills. The costs for accidents can quickly skyrocket, and a lot of people don’t have the means to pay them. This can lead to debt and bankruptcy.
This is where lawsuit loans come into the picture. Those awaiting the verdict of a case can apply for a lawsuit loan, which will essentially pay for any of their needs till the verdict is announced. In return, the borrower is required to pay a percentage of their winnings from the lawsuit plus the original sum borrowed.
The borrower is not required to pay anything till the verdict is announced and the interest is fixed at the outset. Before giving you a loan, the institution providing the funding may decide to evaluate the chances of recovering the loan.
How a lawsuit loan can help you
The first thing a lawsuit loan can help with is covering your finances till you receive a payout. This can include medical bills and living expenses like utility bills, groceries, etc.
The loan can also buy you time to win a case. In the negotiation phase, insurance providers may use tactics to try and get you to settle for less than what you deserve, and negotiating a fair settlement may require some time. Having a loan can help you tide over these circumstances.
When a personal injury claim hits the court, the process can be long, and it may take a couple of years to reach a verdict. Having some financial backing can help you hold out till you receive compensation. This can work in your favor if the payout is expected to be huge.
Things to note
There are a couple of things that borrowers need to note before considering lawsuit loans.
- They can be expensive.
- There is no regulation for lawsuit loans.
- They are relatively new to the financial scene.
You can consider alternate means of funding, like insurance payouts or personal loans, to cover your finances in the meantime. Just be sure to do your research before you decide to sign a lawsuit loan.
Conclusion
In conclusion, lawsuit loans can serve as a much-needed respite from a tricky financial situation. They offer plaintiffs of lawsuits the funds they need to cover everything from medical bills to everyday essentials while they wait for the verdict of a lawsuit.
Considering your financial options carefully before you sign a loan is advisable. Be sure to have a repayment plan in place before proceeding. You can also have a lawyer look over the loan to ensure that it is a financially sound decision to make.
