A pre-settlement loans is an advance to help a plaintiff financially with emergency and every day expenses during the settlement process. A plaintiff who is involved in a pre-settlement is the one who has to retain an attorney and is having financial problems relating to the injury or disability.
The Methodology of Pre-Settlement Loans:
The loan that is advance towards the pre-settlement loans is not a matter of victim met with accident and to carry on the payment of bills and spending his life financially sound with the help of a loan known as pre-settlement loans. But it comes with different why and what scenarios along with how. So here is few of them:
- 1. Types of cases that get qualify
All types of personal injury cases but not necessarily limited to auto accidents, medical malpractice, workers compensation (limited) and few more mishaps or accidents.
- 2. The Primary Benefits
The client while being injured after a mishap faces the harsh world of need money to spend the daily life or to meet the payment of bills. There plea of loans are rejected by banks and other financial institutions because their basic need is requirement of good credit, employment, and collateral. Traditionally, they will not provide a loan against a pending pre settlement. They also will not excuse the loan if you lose the case.
A pre-settlement funding company comes in rescue in this scenario. You can certainly borrow money from family or friends, but, if you lose the case and can’t pay the money back, the family member may not excuse the obligation and your inability to repay may damage an important relationship. Pre-settlement Loans are not loans as the name suggest. It can be consider as an advance on the future value of the ongoing settlement case.
3. The attorney’s role
The appointed attorney plays a pivotal role in the matter of pre-settlement loans. The client and attorney are required to complete an application; usually a simple, one-page form that can be completed online or over the phone. The attorney then sends the lending company a completed form with minimal case records for review of the case. A funding decision can usually be made within 24 hours of receipt of the attorney questionnaire and the records. Upon approval, the client and attorney must sign a funding agreement acknowledging the terms which include withholding of money from the settlement to repay the advance, if the case is successful.
4. The Duration of Receiving the Loan
After all the formalities are done to receive the loan the attorney will receive a receipt of an application. After receiving the application, the attorney will need to complete an attorney questionnaire. He also needs to provide carefully written and detailed minimal case documents for review by the lending company.
The approval of pre-settlement loansis dependent entirely on the strength of the presented case. It was after approval that a contract will be signed by the plaintiff and attorney. Once executed by all parties and the lending company approving the loan, the funds can be available within 24 – 48 hours.