Many families struggle to pay their bills while awaiting the outcome of a lawsuit. Often, these families also deal with medical expenses and other ongoing costs.
Settlement funding gives plaintiffs a cash advance against their anticipated remuneration. These cash advances are typically non-recourse and have simple interest charges.
You’ll Have the Money You Need
Keeping up with your bills can be challenging when you’re out of work due to an injury or a lawsuit. This is especially true if the lawsuit lasts for years and you aren’t receiving any regular income. If you stay caught up on your bills, it could severely impact your credit score.
Fortunately, you can avoid this by applying for a settlement loan. This cash advance is given to plaintiffs in personal injury cases, civil rights discrimination cases, and even heirs waiting to settle a deceased loved one’s estate. The company that advances you the money will then deduct the advance amount plus fees and interest from your final judgment or settlement. Some companies charge simple interest, while others use compound interest. It’s essential to compare different companies to ensure you get the best deal.
The main reason to apply for a settlement loan is that it’s easier than getting a traditional loan or using your credit cards. Many people struggle to qualify for a traditional loan or cannot use their credit cards due to financial hardship. The good news is that settlement funding does not look at your income or credit history, so it’s an easy option for those needing extra cash.
You’ll Be able to Hold Out for a Bigger Payout
Lawsuits often drag on for months; in the meantime, you lose the income you would have otherwise been earning. Without a steady paycheck, paying your bills becomes a challenge. With pre-settlement funding, your debts and expenses don’t have to go unpaid.
Instead, you can use a lawsuit loan to keep current on your bills and expenses and still have enough left to afford to wait for a fair settlement offer. This gives you more leverage during negotiations and helps ensure your case is settled in a way that adequately compensates you for your injuries.
Another benefit of pre-settlement funding is that it doesn’t depend on your employment or credit history. If you’ve had financial difficulties, it may be challenging to get a traditional loan. But with lawsuit financing, the financial underwriters will consider your credit history and your attorney’s evaluation of your case and expected payout.
Most lawsuit funding companies have a cap on the amount they will advance you, and they make money by charging interest and other fees on the money they lend you. Those charges can be significant and significantly reduce the final amount you receive from your settlement. That’s why comparing offers and consulting your attorney and financial advisor before choosing a lawsuit funding company is essential.
You’ll Avoid Going into Debt
Whether you have bills coming due, car payments to make, or need help keeping your head above water, settlement funding can offer financial assistance. It’s not a loan, so you don’t have to be concerned about credit checks, employment verification, or other requirements that may come with traditional loans.
If you’re going to take out a settlement advance, make sure you do your research. Please learn about each company’s fees and how often they compound interest. You’ll also want to be sure that the amount you borrow does not exceed your estimated final award from your lawsuit.
Many people who are seriously injured or have lost a loved one due to the negligence of another party are struggling to pay their bills. Whether they are forced to max out their credit cards or rely on friends and family for help, it can be hard to keep up with essential expenses, especially when they’re not working as regularly as they used to.
Pre-settlement funding can provide a financial lifeline, so you don’t have to choose between getting by and waiting for a fair compensation offer. It can even prevent you from settling for pennies on the dollar because you need the money immediately to pay your bills and eat.
You’ll Be able to Pay Your Bills
While you wait for your settlement to come in, it’s essential that you can still pay your bills. Otherwise, you may need more money or borrow from friends and family. A settlement loan can help. These loans differ from traditional bank loans, which aren’t based on your credit history or employment status. Instead, a lawsuit funding company will assess the merits of your case and determine how much you’re likely to receive in a settlement or award.
Then, they’ll give you an advance on that amount. You can use the funds however you need to survive, including paying your utility bills, rent or mortgage payments, car payments, credit card debt, and more. It’s especially helpful in wrongful death cases with extensive expenses.
It can also be a lifeline for victims of sexual abuse who are seeking justice by filing a lawsuit against their attackers. It can take years to resolve these complicated cases, and the victims may have to live on a minimal budget during this time. A settlement funding agreement can provide a much-needed lifeline for these people and their families. It can even be used to pay a portion of the attorney fees associated with the case, which can add up quickly.