Are you in the middle of a prolonged lawsuit that needs additional funding? Here’s what a settlement loan is and what it can be actually used for.
A personal injury case can take anywhere from 1-2 years to reach a settlement. That’s 1-2 years that you have to wait in order to get any sort of money. The California wildfire victims had to wait about 2 years for Pacific Gas and Electric to settle.
In the meantime, you have medical bills, you’re out of work, and you’re completely out of funds. One of the ways you can get some money is to get a settlement loan.
Keep reading to discover what settlement loans are and how you can get one.
What Is a Settlement Loan?
A settlement loan is called a pre-settlement loan or a settlement advance. If you have a personal injury case or a property lawsuit pending, you can get a loan to help you manage your finances
With a typical loan like a home loan or personal loan, you would pay that back with monthly installments.
A settlement loan is based on the expected settlement amount. You pay the loan back (with interest and fees) when you receive the funds from your case.
There are also structured settlements, which allow you to sell the proceeds of your settlement for cash.
How to Get a Settlement Loan
Does a loan for your settlement seem like a good option? Here is how you can get a settlement loan.
How Much Do You Need?
You don’t want to get a settlement loan for the entire amount that you expect. You may not get the entire amount and you’re still going to have taxes and attorneys’ fees to worry about.
Set a very tight budget for yourself and only get the amount that you need to get by.
Finding a Lender
You’ll need to find a settlement loan lender. No matter what you do, you need to gather the documentation of your case.
Settlement lenders prefer to work with your attorney to get the details and documents.
A lender will review your case. They’ll determine whether or not you have a case and if you should receive money and how much.
The funds are then given to your attorney, who will then forward the funds to you.
What Happens If You Lose?
There are some instances where you get a settlement advance, and you lose the case in court. You wind up with no money and a huge settlement loan.
Do you have to pay that loan back? Lenders have different policies. Some will require that you pay the loan back no matter what. Others will lend the money knowing that you may lose in court and don’t require the funds to be repaid.
This is something that you need to clarify with the lender before you sign up for the loan.
Get a Settlement Loan for Peace of Mind
It could take years to receive a settlement for damages sustained in an incident. You also have to live your life and pay your bills.
That financial gap can be painful and it’s hard to wait years to get the money that you deserve. A settlement loan can bring financial relief and peace of mind.
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