Tips for helping you get cash while waiting for your personal injury settlement
Have you been seriously injured in an accident that was not your fault? Are you now unable to work and struggling to make ends meet? For many people, these kinds of worries can create a lot of pressure to settle personal injury lawsuits quickly—and perhaps for less than they really deserve.
In some cases, lawsuit funding can make sense as a way to take some of the pressure off and help injured victims and their families stay afloat financially while they wait for distant court dates.
What Is Lawsuit Funding?
Lawsuit funding is sort of like a loan that you can take out against your future personal injury settlement. The idea is that the lawsuit funding company advances you the money you need now, and then when you win your case, they will get repaid from the settlement.
The beauty of lawsuit funding is that everything is dependent on your case, not your own personal financial history. There is no credit check—instead the lender will look at the merits of your case to decide how much they want to lend you and what interest rate they can offer. The stronger your case, the lower the interest rate.
Another important advantage of lawsuit funding is that repayment is totally dependent on you winning your case. If you do not get compensation, you do not have to pay back the money.
The danger of lawsuit funding is that it comes with a high interest rate. If you are not careful, you may end up having the lawsuit funding company take a very large bite out of your eventual compensation, leaving you with very little cash to put towards your future.
Choosing a Lawsuit Funding Company
Even with the high interest rate, lawsuit funding ends up being a necessity for some individuals. If you decide that you would like to pursue this option, you need to be careful to choose the best lawsuit funding company you can find. It will help to consider:
- History of the Company: Typically, the longer a company has been in business the more reliable they are. Read up on the company’s history and do not forget to check their Better Business Bureau rating.
- How They Treat You: You want to work with a company that is courteous, professional, and informative. Make sure that you understand all the details of the loan offer before you sign anything.
- How Fast They Approve Loans: Your need for cash might be pretty acute by the time you consider lawsuit funding. Be sure to choose a company that not only promises a fast turnaround on funding approval but actually delivers it.
For personalized advice about the strength of your case and the amount you might recover in a personal injury claim, contact the Law Offices of Fernando D. Vargas at 909-982-0707 and request a free initial consultation.
