Waiting for a payout from a personal injury case can be a long and drawn-out process. Filings, building cases, and even waiting for funds to arrive in the event of a settlement can leave plaintiffs strapped for cash while they wait.
In many of these cases, court appearances do not take place. More than 95% of personal injury cases are settled out of court.
For those who are waiting in the wings for a cash payout from their court cases, options are available to help when they are feeling the effects of money loss. One of the most popular is getting a loan for settlement funds.
Many institutions will offer to give plaintiffs a settlement loan to help pay bills or assist with recovery after an injury. One of the biggest questions surrounding these types of loans is approval. Can your attorney deny you a settlement loan?
Read on below to learn more about settlement loans, the application process, and whether you may be eligible for these funds while you wait for your money.
What Is a Settlement Loan?
A settlement loan is really quite simple to understand. When you’ve filed a court case where legal payouts are expected, you can file for a loan against this money.
Most personal injury cases, including car accidents or workplace injury cases, end in a settlement. Yes, some plaintiffs find their way to the courtroom. More often than not, however, companies prefer to settle out of court and avoid a longer process.
When you have a case that is pending, you may find yourself low on personal funds. This is especially true if you’ve recently suffered a personal injury. Settlement loans are ideal for people in these situations.
The Benefits of Receiving a Loan for Settlement Funds
While awaiting your court case, you may question whether a settlement loan is right for you. It’s important to know the benefits of this type of loan before speaking with your attorney about your options.
The biggest benefit, of course, is the money it provides you while you wait through the litigation process.
If you’ve fallen behind on bills or are in need of assistance due to a lingering injury, this money is ideal. Expenses like car payments, your mortgage, and simple daily expenses are easier to cover with help during such a difficult time.
Another benefit of loans for settlements is the time it offers you and your attorney.
If you’re desperate for cash due to your financial situation, you may find yourself willing to take the first settlement offer you receive. With a loan for settlement funds, you won’t feel so pressured to take what is offered.
If you feel free of money obligations, you and your legal counsel can negotiate and fight for the settlement you truly deserve.
How Is a Loan for Settlement Money Paid Back?
Settlement loans are cash advances. This means, once your personal injury case is settled, a portion of your money will go to your lender. This is why it’s important to research loan providers.
In some instances, settlement loans can be quite expensive. You’ll receive the money you need at the moment, but pay back what you borrowed plus fees and interest.
Working with a reputable settlement loan company is crucial due to this. A good company will stay on top of your case and only offer what they think you can afford.
In most cases, when your personal injury settlement comes through, your attorney will ensure your loan is paid and other fees are covered before you receive the remaining funds.
This takes some of the burdens off you and lets you know how much cash you truly have left.
How to Get Pre-Approved for a Settlement Loan
When applying for a loan for settlement funds, there are a few requirements that must be met.
An open personal injury case must be underway to apply for a loan. Most companies who offer settlement loans understand the length of this process and are open to working with individuals while their case is underway.
You must have an attorney representing you during this process. A great attorney will make your personal injury case easier to navigate and will be in contact with any settlement loan company you speak with.
Your attorney will also be key in helping the company you are working with determine if your case is going to win. No loan company is going to hand over large amounts of funds if your legal team isn’t able to prove you deserve it.
The last steps in getting pre-approved are truly needing an early settlement loan and properly filing your paperwork. Once all that is taken care of, you should find yourself in great shape.
Will Your Attorney Approve?
Attorney approval for settlement loans is not required.
Yes, you need an attorney actively working on your case to apply, but in the end, they are not able to stop you.
In cases where your attorney doesn’t approve of your loan, it is important to question why.
Most personal injury lawyers will be against a settlement loan if they feel it is too early in the process to apply. If they feel the case needs more work, a good attorney will advise against applying for a loan.
Another reason your attorney may disprove is if you’ve already gotten a previous settlement loan. According to the size of the case pending, plaintiffs are able to reach out to several lenders.
Your attorney doesn’t have the final say in whether you can apply for a settlement loan but their opinions should be taken into account when making your decision.
Are You in Need of a Personal Injury Settlement Loan?
If you have a pending personal injury case and are in need of funds now, a settlement loan is for you.
To learn more about this type of funding check out our blog. We have great information on settlement loans and how they work for you. Feel free to contact us when you’re ready to discuss your options.