When a person files a personal injury lawsuit, they are often in a tough financial predicament. The injury that they sustained in the subject of their lawsuit is preventing them from working and drawing the income that they were able to make prior to their injury. The injury is probably causing significant pain and hardship, which also result in significant medical expenses. Many times, the plaintiff in a personal injury lawsuit is desperate for the cash just to keep a roof over their head and food on their table.
This is where insurance companies who are often the defendants in personal injury lawsuits want you to be; desperate to accept a settlement for less than you deserve just to have the money to survive. And this is also where services provided by a pre settlement loan company coming. When you are in this position, a pre settlement loan company may be able to give you the money you need to get by until your personal injury lawsuit is settled and you are awarded what you deserve.
If you are in between the rock and hard place that many personal injury lawsuits plaintiffs find themselves in, considering funding from a pre settlement loan company might be a good idea. To help you make the best decision for your circumstances, we have put together frequently asked questions regarding pre settlement loans:
- What exactly is pre settlement loan funding?
Pre settlement lawsuit loans are basically emergency funding that is provided to people who are going through personal injury lawsuits, to help with the daily expenses in the long and drawn out process they must endure to get a settlement.
- Who qualifies for this type of funding?
In order to qualify for pre settlement lawsuit loan you should meet all of the following criteria:
- Be the plaintive in a personal injury or disability lawsuit.
- Have an attorney working on your behalf.
- Have legitimate grounds to be leveraging your lawsuit.
- Suffering from financial hardship due to the injury in which you are suing the defendant for.
- What are the primary pre settlement learn benefits?
In most cases, the plaintiff in personal injury cases are subject to disability and unable to make the same income they made prior to their injury. The personal injury lawsuit process can take months to years to resolve, leaving the plaintiff with no source of income until that settlement has been reached. Many times, the defense attorneys in such cases utilize a strategy call “delay, defend, and deny” to drag the case out for as long as possible and get the plaintiff to such a point of desperation that they settle for thousands upon thousands of dollars less than they deserve.
The service that is offered by a pre settlement loan company is to strategically provide funding for the plaintiff so that they are not tempted to settle for less than they are owed. These loans are not meant to make the plaintiff wealthy; they are only meant to cover daily expenses such as mortgages, car payments, and food costs, until settlement has been reached.
- Can a plaintive receive a pre settlement loan after their credit is destroyed from their tough financial situation?
Many times, plaintiffs have gone months without substantial income by the time they are applying for a pre settlement loan. Pre settlement loan companies understand the difficult situation that the plaintiffs are in, and these loans are not based on their credit score or their employment history or income.
The pre settlement loan company will be interested in how substantial the claim in the lawsuit is, the liability of the defendant, and the money they stand to win when determining the funding for a pre settlement loan.
- How is the funding amount of a pre settlement loan determined?
Typically, the plaintiff can secure 10% of the predicted value of the settlement in a pre settlement loan. This is enough to help them get by, without consuming the entire value of their lawsuit when they settle the case. May times, a pre settlement loan can be paid in small payments over time, to help the plaintiff with daily expenses.
Do you have any other questions about pre settlement loan funding? Feel free to inquire in the comment section below.