Every year, approximately 3 million people experience injuries from car crashes. Some people encounter minor injuries, but others end up with significant issues that leave lifelong effects.
When you get injured from a car crash caused by another person, you can file a lawsuit against the responsible party. When you receive the funds from the lawsuit, you’ll hopefully have plenty of money to cover all your damages.
Receiving the settlement check doesn’t happen overnight, though. Instead, it can take years, which is why many victims choose lawsuit settlement loans.
Are you wondering what a lawsuit settlement loan is and who can get one? If so, continue reading this guide to learn everything you need to know about lawsuit settlement loans.
Why Lawsuits Take Time
Before you can understand lawsuit loans, you must learn why they exist. Lawsuit loans exist because lawsuits take time.
Suppose you get in a car accident and have severe injuries. You might not know the extent of these injuries for months or possibly even years. Lawyers recommend waiting to settle a case until a person knows the extent of their injuries.
Waiting to discover the impact of your injuries is one reason that lawsuits take time. A second reason is due to the nature of the court system. Many courts are overwhelmed with cases, which means it takes time to get to a court to settle yours.
Lawsuits also take time because they involve negotiations between several parties. You cannot settle a case without negotiations. The benefit of negotiating is that you can receive more money, while the downside is that it takes time.
Some lawsuits settle within a few months, but the majority of lawsuits take well over one year. While you wait for your settlement, you might experience financial strain due to your injuries and life changes.
The Definition of a Lawsuit Settlement Loan
So, what are lawsuit settlement loans? As the name suggests, these are loans, which means you borrow money when you take one. While you are borrowing money, in a sense, you don’t have to repay the money you received.
A lawsuit settlement loan is a loan type that lets you receive cash today for your settlement. Keep in mind; you might not receive your lawsuit settlement check for years. If you need the cash from it today, you can apply for lawsuit funding.
Through lawsuit funding, a lender reviews your case and issues you a check for part of your expected lawsuit settlement. The amount they offer is a percentage of your expected settlement, and the percentages vary by company.
So, you receive cash today through a lawsuit loan, and you never have to repay the money. Instead, your lender gets paid when your lawsuit eventually settles and receives the settlement check.
Your lender gets a check before you get your money. You will receive less money than you expected because your lender gets repaid from your settlement. You receive the remaining balance, though.
Once you receive the loan proceeds, you can use them to pay your bills, expenses, and debts. You can use the money for everyday expenses or for vacations or anything else.
The Eligibility Requirements for Getting One
Now that you understand a few things about lawsuit loans, are you interested in getting one? After all, it could help a lot during this time. Before you apply for one, you’ll need to know the eligibility requirements for getting one.
Lenders require several things before approving lawsuit loans. The first requirement is evidence that you will win your case. If the evidence in your case doesn’t offer enough proof that you will win, you probably won’t qualify for lawsuit funding.
The next requirement for getting approved is that you must have a lawyer assisting you with your lawsuit. You cannot receive a loan if you are handling the case yourself; you must have a lawyer.
A lawsuit lender will consult with your lawyer to verify these things before approving and disbursing the funds. The lender will ask the lawyer questions about your case to determine if you meet the eligibility requirements.
You can contact a lender at any time to learn more about the requirements and rules.
The Benefits of Lawsuit Loans
If you feel that you meet the eligibility requirements, there is one more thing to know: the benefits of lawsuit loans. Here are the top benefits you can experience from getting one:
Access to Immediate Cash
When you’re injured and can’t work, life can become difficult without any income. If you’re in this position, getting immediate cash can make a huge difference, and that’s the result of a lawsuit loan.
You Can Protect Your Credit
When you are low on cash and can’t pay your bills, your credit could suffer. Having access to a line of credit can help you protect your credit. You can use the proceeds to keep up with your bills, which helps avoid late payments on your credit report.
You Don’t Have to Pay It Back If You Lose Your Case
Another benefit of a lawsuit loan is that you don’t have to repay the funds you borrowed if you lose your case. Lawsuit loan lenders carefully evaluate situations before offering loans.
If they decide to loan you money and you lose your case, they take the loss. You will never have to repay the money, even if you lose.
Your Credit Doesn’t Matter
Finally, most lawsuit loan lenders don’t base the decision on a person’s credit. You can have bad credit and still qualify for a loan, which is good to know.
You Don’t Have to Suffer Financially
As you can see, a lawsuit settlement loan is an excellent solution for anyone who is waiting for a lawsuit settlement. If you are interested in getting one, talk to your lawyer to learn more.
If you are interested in learning more about car accident settlements or other legal issues, check the rest of our site for more helpful information.