From small lawsuits to $67 million in damages in an equal pay lawsuit against U.S. soccer, there’s quite the variance. When you’re looking into pre-settlement loans, you might wonder what they are and how beneficial they’ll be.
You’re in luck! Read on to explore how beneficial paying on a pre-settlement loan is.
What Is a Pre-Settlement Loan?
This is a cash advance where the individual has a pending personal injury lawsuit. This occurs when you’re experiencing an injury and have an attorney represent you. You might need cash now through a pre-settlement loan.
You might need pre-settlement loans after auto accidents when you’re out of work. Even when you’re out of work, bills can add up such as your mortgage, living expenses, etc.
Since the legal process is slow it can take more than a year for it to be completed. The insurance company might be liable to pay for medical expenses.
Many insurance companies won’t have an incentive to pay you sooner than later. They might try to delay the process before sending you the money.
Since pre-settlement loans aren’t loans, they’re known as a non-recourse advance. This means that even if the case isn’t successful and you don’t have a settlement, you don’t have to repay the funding.
When there isn’t a settlement, then you get to keep the money. At the end of a successful case, then your law firm will repay the funding company.
Paying Your Advance Early
You can repay your advance at any time, even if it’s before the case settlement. Some companies will require a minimum repayment amount. Keep in mind that if you pay it early and the settlement turns sour, then it could be a bad decision.
Taking Out More Than One Pre-Settlement Loan
You can take out multiple low-interest pre-settlement loans if the value is large enough. Small cases might only qualify for modest amounts. For strong cases with a large amount then you might be able to get more than 1 loan.
The Maximum Amount of a Pre-Settlement
The maximum allowed is about 15% of the value that the claim is expected to be. Speak to your funding agent about your options. Also, some settlements can be completed in a few minutes.
Keep in mind that you need to have an attorney to qualify. You need to also have a legal claim with documented liability as well.
Understanding Payments on Pre-Settlement Loans
After exploring this guide, you should have a better idea of what to expect. Take your time deciding if pre-settlement loans are right for you. Make sure that you lawyer up and explore what your options are when it comes to pre-settlement loans in your area.
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