Pre-settlement loans can give you financial relief as you wait for your case to get settled. Technically, it’s not a loan but more like a cash advance against your settlement proceeds. Some people also refer to this type of loan as personal injury loan, lawsuit cash advance, non-recourse loan, and lawsuit loan.
If you’re thinking of getting a pre-settlement loan, it’s important that you learn as much as you can about it first before you proceed. That way, you can make an informed decision and choose an option that’s best for your specific situation.
Here are the most commonly asked questions about pre-settlement loans.
1. Can I ask a loan from my lawyer?
It’s understandable for people filing a lawsuit to be in need of financial assistance. If they’ve been a victim of personal injury such as a car accident or work related injury, then they may have to pay for expensive medical bills and even be unable to work following the accident. Unfortunately, you cannot get a loan from your lawyer as an advance against your settlement payment. It’s unethical and any professional lawyer worth his salt would never consent to this kind of agreement.
2. Where can I apply for this kind of loan?
You can find lenders that specialize in pre-settlement loans online. However, it’s imperative that you choose your lender carefully. Many charge sky-high interest rates and fees. There are also those who charge an application fee. Choose a reputable lender that offers fair rates and does not impose a fee to apply.
3. How does the process work?
First, you need to have a lawyer handling your lawsuit. If you don’t have one yet, you should start your search now. Then, find a reputable lender offering pre-settlement loans. Most of them have websites where you can apply. Simply fill out the online form with the necessary information so they can get in touch with you. Normally, the lender will want to speak with your lawyer and ask for documents related to your case so they can make an assessment and decide whether to grant you the lawsuit cash advance loan or not. If they decide to grant you the loan, you and/or your lawyer will need to sign an agreement stating that you need to pay your loan as soon as you get your settlement. Your collateral in this case will be your jury award of settlement.
4. Can I get a pre-settlement loan even if I’m unemployed or with poor credit?
Absolutely you can apply for these kinds of loans even if you are unemployed, if you have bad credit or if you have no credit at all. This type of loan is different from a bank loan, and your credit score will have no bearing in the evaluation process. The lender will only look at the likely outcome of your lawsuit.
Find a good lender that offers settlement loans so you can have the financial assistance you need while waiting for your case to get settled.