An accident with injuries can be physically painful and financially calamitous. Many people who have been injured in accidents have problems paying their bills while they recover. A personal injury lawsuit can take years. The defendant in such a case may make you a settlement offer that is too low. You may actually have to go to court and that can take many months. Some people get lawsuit loans to help pay their bills when they are recovering from an accident.
What a Lending Company Wants
Lawsuit loans are different from other kinds of loans. The lending company will not run your credit and they will not care if you are employed. They will never ask you for collateral. Instead, they will contact your attorney and discuss the details of your case with them. Your attorney will let the lending company know the amount of money you are likely to get. The lender will then offer you a loan amount. If you take the loan, you will be charged interest or loan fees. The interest and fees are not regulated in most states. Interest can be as high as 60% in some cases. You may want to look for a company that charges loan fees as they tend to be lower than interest rates.
You might have already taken out a lawsuit loan to help tide you over while you wait for your settlement money to come in. If the money from that loan has already come and gone, you may be wondering if you can get a second loan. There may be some cases in which you can borrow against your upcoming judgment a second time.
Getting a Second Loan
Most lawsuit funding companies will only lend you about 15 to 20% of your expected settlement amount. This is done so you are able to retain some of the settlement money when your case is over. You can generally get a second loan, as long as the total amount of both loans is not over 20% of the expected settlement amount.
The turn around time for any lawsuit loan is usually quite fast. The lending company normally approves or denies your claim within two business days. If you go through the same lending company twice, you may find out if you qualify for the second loan even faster.
The Advantages of a Lawsuit Loan
There are alternatives to legal loans. You could take out a credit card to pay for food and medical bills while you go through your lawsuit. If your credit is not good, you may end up with a high-interest rate. You may also lower your credit score when you open a new card. You could borrow from friends or family, but make sure to get the terms of the loan in writing. Borrowing from someone you know can cause stress in a relationship, especially if you don’t discuss such things as a payback date and interest.
If you take out a credit card, borrow from friends or get a different kind of loan, you will have to pay back the money regardless of the outcome of your lawsuit. You only have to pay back a lawsuit loan if you are victorious. If you lose your case, you will not owe your lender anything.
Pinnacle Legal Funding is a Florida based company that can help you with a lawsuit loan. Litigation takes courage and patience, but it also takes money. A loan can help ease your financial stress until you get the money you deserve.
Authoritative Sources:
http://www.duhaime.org/LegalDictionary/L/LitigationLoan.aspx
https://www.nerdwallet.com/blog/finance/credit-score-credit-card/
