What are settlement loans? If you are waiting on a settlement from your insurance company for injuries you have suffered or are involved in a personal injury lawsuit, you may be curious about litigation funding and how it works. Being injured and unable to work can impact your life in a negative way, causing you to be unable to pay bills and potentially leading to bankruptcy. Settlement loans are one solution that millions have used to obtain financial peace of mind.
Not actually a loan, this is a process in which you can get a portion of the money you are expecting to win in your settlement if you qualify. It is your money, and when you are facing financial problems litigation financing companies help you gain access to it quicker. Personal injury lawsuits can often take months or even longer to settle; in the meantime, it is getting harder and harder to pay your household bills and medical expenses.
Here’s how it works: Litigation funding companies require that your attorney submit the necessary documentation regarding your lawsuit. You do not have to worry about credit checks, background checks, employment verification or other details, the only information required are the details surrounding your injuries. Upon receiving the information, the settlement funding company will review it to determine if you qualify. If you do, you will have access to a portion of your money immediately, generally by the next business day.
Another fact about lawsuit loans that you will find comforting is that should you be denied your settlement, you are not required to repay the funding company. This process is non-recourse; you only repay the advance if you do receive your settlement. No monthly payments are involved, you simply repay the money at the time that you receive your money, or, if you receive structured settlement payments, you can repay the funding company using those payments.
There are no upfront costs or out-of-pocket expenses, so you are never required to pay money that you do not have in order to get the money you so badly need. Money worries can add significantly to your stress, which is that last thing you want when you are injured and waiting for a settlement. Consult with your attorney today to learn if litigation financing may be the appropriate route to take in your situation.