Accident victims always find themselves in a vulnerable situation when in court waiting for a case to be decided on. What makes them feel more vulnerable is the lack of finances even when they know they have a strong case.
The reason for that is that lawsuits take years. It gets worse if the defendant is a financially strong company that can keep the case going for a long time. That’s where legal funding comes in. But what is legal funding? It’s a risk-free cash advance given to an injured person expecting financial recovery after the litigation. It’s also referred to as litigation funding.
Remember that while waiting for a settlement, you need money to keep the case going. This can push you into settling for ridiculous offers from the defense attorney. That’s why you need a trusted loan partner to come to your rescue. Legal funding companies can provide you with an accident lawsuit loan when you need it the most.
An example of a legal funding company is Express Legal Funding companies, which can provide you with a loan anywhere between $550 to $500,000. This accident loan can help you take care of your medical expenses and other bills as your attorney fights for your settlement.
Pending Lawsuit Loans
Law cash advances enable you to go through life without missing vital payments. They’re able to take care of their expenses throughout the litigation process without any financial strain.
But are you aware of how to go about getting the law cash advance? We discuss that in this article.
- Wait For Your Case to Develop Before Applying For a Lawsuit Loan
A lot of lawsuit loan companies don’t advance client legal funding until 90 days after the accident. The reason for this is to allow time for a case to develop before understanding its value. Variables like the degree of your injury and the available insurance cover may not be immediately accessible.
The least amount of time a lawsuit loan company can wait after an accident is 30 days. You also have to ensure that all documentation is provided to the lender. When a lawsuit company underwrites a case, they make sure to review all the documents.
They’ll review the police report explaining liability, as well as an overview of your medical report. They’ll also review the available insurance limits. Wage loss claims and property damage to your car are also factors that are likely to affect the value of your case.
Law cash pre-settlement funding is meant to level the playing field between you and financially strong companies. The funding gives you the resources to properly litigate the case.
The litigation process is something that can take years, as mentioned earlier. Yes, waiting on a settlement needs cash. The amount of time it takes for a case to settle determines the lawsuit loan repayment. Be patient enough to wait for the case to develop. It helps to ensure all the documents are available before going for a lawsuit loan.
- Consult Your Attorney About Lawsuit Funding
There’s a high possibility that your attorney previously had a client who used legal funding. They must be experienced in handling personal injury cases like yours. Thus, you should ask them to recommend you to a reputable lawsuit lending company.
If they refuse to help, it will be up to you to look for a law cash advance. There’s a lot of information available about them. It’s not as complicated as you might think.
Be sure to notify your attorney when applying for a law cash advance. That’s because they’ll need to sign an agreement with the lawsuit lending company. It, therefore, shouldn’t be a surprise to them. Besides, you’ll certainly need some legal advice.
- Take a Small Settlement Loan if you can
I’d strongly suggest that you take as little money as possible from a pre-settlement loan. Avoid over estimating the amount you’ll need because legal funding isn’t cheap. The less law cash advance you apply for, the less you’ll be required to pay back.
Keep in mind that you don’t need to pay back more money than is necessary. The final payback amount shouldn’t get in the way of settlement negotiations. A reasonable settlement offer can be accepted since the liens on the file don’t consume the entire proceed.
Remember that you can always go back and request another law cash advance in case you run out of cash. You can also opt for borrowing a certain amount of money on a monthly basis to cover your expenses.
- Settlement Funding Costs and Fees
Accident settlement loans can be expensive as mentioned earlier. And, competition in the sector has indeed brought fees closer between companies. But, it’s still important that you do some research to get the best rates and fees.
Pre-settlement loans are made up of the percentage indicated in the agreement and other fees added to the amount you receive. Thus, it’s necessary that you carefully read the contract to understand it. This is considering that lawsuit lending companies are unregulated.
- Consider an Alternative to Lawsuit Loans
Despite being important, pre-settlement loans can be expensive. If you can borrow cash for cases from friends and relatives, it would be good to take that route. You can also choose to use your cash, which is cost-effective.
Note that lawsuit loans are, technically, not loans. That’s because such cash is not paid back if you lose the case. This means that funding a lawsuit is risky for lawsuit loan companies. That’s because winning a case is not guaranteed. Also, there’s a possibility that the settlement will not cover all your expenses.
Conclusion
Law cash pre-settlement funding has few client protections. Thus, plaintiffs need to be extra careful when considering taking this route. Do some research to understand what lawsuit loans are. Then ask yourself if taking an accident loan, for instance, is a wise financial decision in your situation.
If you settle on applying for the loan, choose carefully and involve your attorney. The reason is that you’ll need some wise legal advice.
