If you are facing a lawsuit, chances are that your finances are dwindling. You probably are in a dilemma debating whether you should take a pre-settlement loan. Very often, plaintiffs (often in personal injury lawsuits) are faced with mounting bills and minimal income to financetheir legal fees, let alone their daily needs. While securing a loan at a bank can be a daunting task, the only viable option for most plaintiffs is to pursue a pre-settlement loan.
So why would I need a pre-settlement loan? What benefits will you get? Pre-settlement funding gives you financial reprieve in tough financial times as you wait for a settlement. This boost in funding can help you pay for legal fees, and other emergent needs.
Read on to find out why you should go for a pre-settlement loan.
What Is a Pre-Settlement Loan?
Pre-settlement funding is a pretty new concept in financial law. But what is it? Essentially, this is a loan just like any other loan. The difference is that this loan is awarded with a guarantee that repayment will be made upon receiving a lawsuit settlement.
Once you apply for a pre-settlement loan from a litigation finance company, such as Money First Lending, you can receive a lump-sum payment. The good news is that you can use the money received to fund your legal fees and bills such as medical and household bills.
However, before receiving the funds, the lending company will first scrutinize your case. This is to determine whether you stand a chance of winning or not. Once the company is confident that you can receive a favorable judgment from the court, your account will be funded within a few days.
Why You Should Get a Pre-Settlement Loan
Pre-settlement loans, just like any other financial loans, have many benefits. The major difference is that a pre-settlement loan can only be awarded if you are battling for compensation in a lawsuit. Here are the reasons why you will need pre-settlement funding:
You’ll Get Financial Reprieve
If you’ve ever been in a lawsuit, then you probably know that they can be quite expensive. Not only will you have to budget for your personal use, but you will also have to pay your legal expenses.
While this may look simple, financing a lawsuit can drastically drain your bank account. However, a pre-settlement loan can lighten the load for you. You will be able to cover your personal and legal expenses with ease.
You’ll Get Ample Time to Negotiate the Settlement
If you’re solely dependent on a settlement to pay for your personal and legal expenses, going for a pre-settlement loan will give you more time to consider any settlement offers. After all, you should always strive to get the best deal as a plaintiff instead of prolonging the litigation process.
Always remember that battling a lawsuit while working can be quite daunting. With extra financial backing, you and your attorney will have ample time to negotiate for the best possible settlement.
It’s a Viable Source of Money if You Are Out of Work
A vast majority of personal injuries can impact the victim for quite some time. If you find yourself in such a situation, chances are that you will be out of work for some time and will lack any source of income.
However, this doesn’t have to be the case when you apply for a pre-settlement loan. With such funds, you stand a good chance of living comfortably as you wait for your settlement. Not only will you be able to pay for your legal fees with ease, but you will also be in a better position to pay all your medical expenses.
Get Peace of Mind with a Pre-Settlement Loan
As you’ve seen, a pre-settlement loan comes with huge benefits. While nursing the injuries inflicted on you, you shouldn’t have to worry about your finances. A pre-settlement loan will give you much-needed peace of mind.