Most people are shocked to learn that they can in fact borrow money from their lawsuit. If you are currently in the process of a personal injury lawsuit, you may be able to get a loan against your future settlement. This can be a great way to get the money you need to cover things like medical bills, lost wages, and other expenses.
However, not everyone will qualify to borrow money from their lawsuit. The amount that you can borrow will depend on the strength of your case and the amount of your expected settlement. The interest rates on these loans can be high, so it is important to exhaust other funding options before choosing to borrow money from your settlement.
Many injured plaintiffs choose to borrow money from friends and family. Others can get a personal loan from a bank or credit union. This can be a good option if you have good credit and can qualify for a low interest rate. However, it can be difficult to get a personal loan if you have bad credit or no credit history.
Many people are surprised to learn that they can borrow money from their lawsuit
If you are currently in the process of a personal injury lawsuit, you might be injured and out of work. Most people who have not already gone through a personal injury lawsuit would never know about lawsuit loans.
Just like your attorney is on contingency, loans against lawsuit settlements are no-win / no-pay, meaning if you don’t win your case, you don’t have to repay the loan.
The best thing about these no-risk loans is that you can use the money for anything you need. Whether it’s to cover medical bills, make ends meet while you’re out of work, or pay for other expenses related to your accident, you can use the money from your loan for anything you need.
Some people may not qualify to borrow money from their lawsuit
The amount that you can borrow will depend on the strength of your case and the amount of your expected settlement. If you have a strong case and are expected to receive a large settlement, you will likely be able to borrow a larger amount of money.
However, if your case is not as strong or you are not expected to receive a large settlement, you may still be able to borrow money, but the amount you can borrow will be smaller.
No matter how strong your case is, the interest rates on these loans can be high. For this reason, it is important to exhaust other funding options before choosing to borrow money from your settlement.
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What other options are available to injured plaintiffs
Many injured plaintiffs choose to borrow money from friends and family. Others can get a personal loan from a bank or credit union. This can be a good option if you have good credit and can qualify for a low interest rate. However, it can be difficult to get a personal loan if you have bad credit or no credit history.
Some plaintiffs choose to get a credit card and use it to pay for their expenses. However, this can be a risky option because if you are not able to make your payments, you will be stuck with a large amount of debt.
In some states, plaintiffs can even borrow money from their lawyer, with certain restrictions.
How lawsuit loans can help injured plaintiffs
Borrowing money from your lawsuit can be a good way to get the money you need. It can be used to pay for medical bills, lost wages, and other expenses. These loans can be a great option for people who have bad credit or no credit history.
The fact is that personal injury cases can take a very long time to settle. During the time it takes for your case to resolve, you are not typically compensated for the time off work due to your injuries.
Borrowing money against your settlement can help give your attorney the time they need to get the best possible outcome for your case.
Costs of lawsuit loans
The cost of borrowing money from your lawsuit will depend on the amount you borrow and the interest rate. The interest rates on these loans can be high, so it is important to exhaust other funding options before choosing to borrow money from your settlement. Here’s an example of the costs involved with borrowing money against your lawsuit:
- Amount borrowed: $5,000
- Total fees: $425
- Interest rate: 17.5%
- Term: Until your case settles, let’s say 24 months
- Total cost to pay back the loan from your settlement, including interest and principal: About $9,200
As you can see, the costs of these loans can add up quickly. It is important to make sure that you borrow only the amount of money that you need.
What else should I know about getting a loan against my lawsuit
If you are considering borrowing money from your lawsuit, it is important to speak with an experienced personal injury attorney. They will be able to help you understand the process and determine if it is the right option for you.
It is also important to understand that these loans are not typically available to everyone. The amount you can borrow will depend on the strength of your case and the amount of your expected settlement.
Provident Lawsuit Loans
If you are in the process of a personal injury lawsuit and are in need of funding, contact Provident Lawsuit Loans today. We are a nationwide provider of lawsuit funding and can help you get the money you need to cover your expenses.