Many people are not familiar with settlement loans, but if you have filed a personal injury lawsuit, then you should take a few minutes to learn about this type of loan. Essentially, with such loans, you can have the money you need even before your lawsuit is settled. Your lender will first review the merits of your case and if they think you have a very high possibility of winning your case, they will loan you money which you will use to pay for medical and living expenses, mortgage, loans, and others.
Reasons for Obtaining Settlement Loans
The truth is, this kind of loan isn’t for everyone. However, if you have a personal injury case and you are having difficulties paying your bills then this is an option you should consider. This is especially true if you’ve tried other alternatives like borrowing money from family, friends, or your credit union to no avail.
Remember that personal injury lawsuits could take years before being settled or won and if you don’t have a lot of money tucked away in the bank, you’re likely going to experience financial problems. Settlement loans can tide you over, so to speak, until your case is settled.
How to Obtain This Kind of Loan
If you’ve decided that this kind of loan is the only option you have left, the first step is to get in touch with a personal injury lawyer, if you don’t have one yet. Once your case has been established, you can then apply for a settlement loan.
The lender specializing in settlement loans will need to talk to your lawyer and get copies of your case-related documents so they can assess your case. If it has been established that your chances of receiving a settlement is good, they will be able to grant you a loan.
How to Pay Back Your Loan
The nice thing about such loans is that you don’t have to pay the lender until after you have received your settlement or won your lawsuit. Upon settlement of your case, you will then give the lender the amount that you’ve agreed upon, which includes the principal and interest/fees. Once you’ve done so, the lien will be released.
In the event that you lose your case, you don’t owe your lender anything. That means you don’t have to repay them the loan. It’s a risk that loan providers know very well, hence the higher interest rates levied on this type of loan.
Lawsuit loans are not always the ideal solution to your financial problems. But if you have a personal injury case and you’re already having problems making ends meet, then applying for this kind of loan could very well spare you from a lot of financial difficulties. This kind of loan has helped countless people keep their properties and prevent bankruptcy while waiting for their settlement. If you want to avoid such problems then this may be a sensible option for you.