A problem arises when someone has been the victim of an accident which was not his or her fault and medical treatment is needed. Perhaps there is no more money coming in from work because the accident has left this individual unable to work for some time. Maybe the medical costs are beyond his or her ability to pay, and insurance will no longer cover these bills. Perhaps a doctor is calling for more extensive testing or treatment, but there is no money available.
Meanwhile, a lawsuit has been filed with an attorney from one of many personal injury law firms in operation. The case is going to come to court, but not for some time. In this case, the claimant will still have to pay bills, but with what? He or she can turn to a lender for a pre-settlement loan prior to the conclusion of a personal injury lawsuit.
Who will lend the money?
If you already have a relationship with a bank, ask this institution if they carry any pre-settlement loan products. Otherwise, search for one which advertises pre-settlement cash advances.
Who qualifies for a loan?
To qualify, you must be the claimant or plaintiff in a pending personal injury lawsuit, or you could be approaching a settlement. Your case might pertain to:
• Medical malpractice
• A dog bite
• Slipping or falling in a public place
• A car accident
• Severe burns
• Food poisoning
• Some other incident in which you were harmed due to the negligence of someone else
Of course, you could also be that “someone else” in which case you could need money to get you through until the case is over. Then you will know if you will have to pay damages and how much they will be.
How a client qualifies will depend on his or her position in the case and what stage the personal injury lawsuit is at. It might not be necessary to provide collateral and credit rating might not matter, especially if money is forthcoming. The lending agent will also assess the case itself to determine if a potential client looks likely to win.
Then again, if your case is pending and the result is far from being certain, a credit check will be performed. The client will probably have to provide collateral. If you have suffered from bankruptcy in the past but are now clear, you can still apply for a pre-settlement loan.
What will the client need money for?
Regardless of what table you are sitting at in court, or what side of the table in a settlement situation, you will have legal bills to pay. Meanwhile, the mortgage or rent comes up every month as usual. Utility bills arrive in the mail. Kids and pets need feeding. The car requires petrol. All of these regular financial expectations are enough without the legal costs you are experiencing. If you are the victim of personal injury, these costs also extend to ongoing medical treatments and those planned for the near future.
A pre-settlement loan is not meant to pay for a holiday. It cannot be used to fund the purchase of a new car. Lenders advance this money so that clients can meet their necessary responsibilities with hardship.
How long does it take to get the money?
Although “cash advance” makes this type of loan sound like a payday loan, available within hours of application, this is not what it is. The lending institution needs to check you out. Documents will be required. An application process must be completed. If you qualify, and the documents satisfy the lender, then your money could be available within a week.
Will you always need a cash advance during a personal injury lawsuit?
Not everyone will need to take out a loan when their case is pending. Sometimes a case can be completed behind the scenes swiftly specially with the assistance of experts from personal injury law firms. Perhaps a lawyer has arranged a “no-win, no-fee” plan with the client because he firmly believes the case will be successful. Meanwhile, perhaps insurance is covering every necessary procedure.
Also, insurance can protect clients from having to pay out costs from their own pockets. People who run their own businesses typically possess this kind of policy to protect themselves in the event of litigation. Apart from a deductible, with insurance the liability costs are paid for by the insurer up to a certain amount.
What does it cost to take out a loan?
Any loan is going to cost money, but there are special terms for these types of financial arrangements. The terms end when the money is repaid. Banks know that their clients are at the mercy of the justice system, so it is impossible to set a true date for completing a transaction. A client’s interest rates are calculated up to the date when he or she paid back the money. The client is given an itemized list of fees and interest to be paid.
Need more info? Check out https://thewitherspoonlawgroup.com/firm-profile/nuru-witherspoon/.