The average cost of a simple lawsuit is about $10,000. However, this can quickly multiply as your case becomes more complicated and more work and experts are needed. Unfortunately, not everyone has this kind of money lying around.
How do you pursue a lawsuit when you don’t have the money to back it up? One solution is to seek out a lawsuit loan. You may also hear them referred to as pre-settlement funding or settlement loans.
Find out how this financial solution can help you seek compensation for damages when filing a lawsuit.
What Are Settlement Loans?
A settlement loan can provide you with an immediate influx of cash when funding a lawsuit. The lender will approve you for a loan based on the type of lawsuit and the settlement value you’re expected to receive.
This money can help ease your financial strain while you wait for your lawsuit to settle. Some people find that the loan helps them have stronger negotiating power to hold out for a better settlement.
Types of Lawsuits
This type of lending doesn’t work for all types of lawsuits. You’ll most commonly see it with personal injury cases. This is because the defendant in the case is usually a business or insurance company that’s more likely to pay than a private individual.
These cases also predominantly settle out of court, making it easier to predict the settlement amount. Personal injury covers a lot of areas, including FELA matters, auto accidents, workplace injuries, slip and fall, medical malpractice, product liability, or wrongful death.
How to Apply
You’ll need to fill out an application for your lawsuit funding. Many lenders have a simple online form that asks about your information, the case details, and the amount your case is expected to settle for.
The lender will evaluate your case’s details and provide you with an amount they are willing to lend you. Apply to several lenders; they’ll each give you a different number.
Your credit score and history aren’t deciding factors because the lender expects your settlement to repay the loan. Once approved, you can get your money quickly.
What Can You Use the Money For?
You can use the money from your loan to pay for living expenses, bills, medical treatment, or anything else. The money is yours to decide how you’ll use it.
Repaying Your Loan
You’ll repay your loan when your case settles, and you receive your settlement money. Depending on your loan agreement, this could mean a single lump-sum payment or several monthly or quarterly payments. These loans tend to have high-interest rates, so repay your loan as quickly as possible.
Some lenders do not require you to repay the loan if you lose your case.
Apply for a Lawsuit Loan
If you’re waiting for your personal injury lawsuit to settle and are struggling financially, a lawsuit loan may be able to help. There’s no harm in applying for the loan and finding out what you could get. There’s no obligation to take the loan, but it’s nice to know that a safety net is there should you need it.
Check out more of our content for more helpful guidance with the law and hiring a skilled attorney.